5 ways to avoid problems: on repaying mortgages

Don’t let your significant investments go unprotected.

By Nicole Hamer |

09:18 23 April 2013

Following Margaret Thatcher’s role as Prime Minister is the improved rate of new homeowners. A mortgage loan can be difficult to receive, and to maintain.

 

During financial struggles homes may be at risk, but the good news is that there are a host of options available to protect such an investment. Even if you never have to take advantage of them, when it comes to protection it’s better to be protected than try to save a little bit over the long haul and be in a fix if you do need protection.

 

Here are a few ways to protect an investment like a mortgage loan:

 

• Even before you make the purchase speak to the bank about repayment options and what happens if something unexpected occurs in your financial situation. Knowing this information up front will reduce a little bit of the stress if something does happen.

 

• Payment Protection Insurance can typically be chosen so that in unfortunate circumstances, such as unemployment, partial or full payments can be made toward the mortgage loan.

 

• As with anything else in life, budgeting is a necessity. When you’re ready for a large investment, it’s also wise to have a few months’ worth of the typical payments in a savings account.

 

• If you have the ability to put a large amount down on the purchase of a home, you should definitely consider it as long as you still retain money in savings as well for unexpected costs. Putting large amounts against the purchase of a home will reduce monthly payment amounts, which in turn might make it more affordable if your economic situation changes.

 

• There are also various programmes to assist people with trying to keep their homes. If your home becomes in danger of being repossessed because you aren’t able to pay the mortgage loan, be sure to seek out those programmes.