It's fair to say that everyones biggest outgoing is their mortgage or rent! Rent we just cant change unless we go hustle the landlord, who will 99% of the time tell us to beat it. However, if you have a mortgage, now is the time to change your mortgage provider. (pretty much regardless of your current circumstances.) It's probably even worthwhile paying a get out fee if you are tied in to your current mortgage.
Without going into specifics because lets face it, everyone is different, my advice would be to contact your independant financial advisor immediately, and see what they say. Without doubt, if you've had the same mortgage product fot any length of time (more than 2 years) you ought to be moving NOW. Interest rates are at their lowest for hundreds of years, and it's time to take advantage! I know I took advantage very recently, and it will save me £150 a month! Money saved on your mortgage is as good as money earned, and it equates to increasing my online earnings by 15% with no effort.
The one caveat ill add to this are the problems with negative equity! This is when you mortgage is for more than the current value your home. If you've been caught in a negative equity bubble, you may have to ride out the storm, with the small comfort that your mortgage payments may well have fallen even without moving due to the base rate drop.
Similarly to your mortgage, where you could be paying too much, is any credit card debt that you currently hold. If your credit rating allows it, you should take a low interest personal loan and pay off the credit cards immediately. This alone can save you thousands of pounds a year, with the added advantage that you'll have a date in the future where it'll all be paid off, unlike with your credit cards! Some of the sites listed below are a great place to start and they'll be fit to compare your options.
Wednesday, January 21, 2009
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