IFA

Independent Financial Advice

Finances are a tricky thing to keep in order but a little hard work is worth the effort, I’m sure you’ll agree. Mortgages for example: More than half of us have a mortgage, so it makes sense that we find the best deal for us at any given time. The problem is, these once simple financial products used to be quite simple. You were offered a sum of money over a given term at a given variable interest rate… and you were expected to pay it back — simple. Now, there are myriad options.

One can have a fixed rate mortgage — length spans from two to ten years. You could choose a variable rate mortgage — again, the term of the rate varies depending on preference. There are offset mortgages that are, like the name indicates, offset against any personal savings that you may have. Then of course, there is the standard variable rate, which differs from lender to lender.

The next big decision is how much you want to borrow. The amount loaned has a direct impact on the about you earn. Being able to borrow is also dependent on your credit rating. Your credit rating is determined by one’s credit history. So, if you have a credit card or you’ve had one in the past… then you have a credit history. It’s important to look after your credit history as it follows you for life. Missing payments, otherwise known as a default, can result in problem for you down the line… like when you need a mortgage for example.

What this means is that mortgage lenders will look into your credit history to ascertain if you’re worthy of being loaned money. There won’t be any problems if you’ve managed to pay off all your credit on time… but what happens if you’re missed a payment? Well… it’s likely the bank won’t give you a mortgage, that’s what. If you think you’ve been affected by bad credit, why not pop in and see one of our advisors, we’d be happy to take a look and help you out.