There are many questions that people often ask regarding mortgages, including ‘can a mortgage be transferred to another person. Well, in short, the answer to that question is yes, you can. Like most things in life, however, nothing is ever quite as black and white as you may have hoped, so there are some things to consider.
If your mortgage is known as assumable, it can indeed be transferred to somebody else. If not, however, then you may struggle.
Getting a mortgage is one of the most rewarding experiences of your life, especially if you are a first-time buyer, but there are numerous other things you need to know about mortgages before you commit to taking one out yourself.
If you’re thinking of getting on the property ladder and becoming a homeowner, here’s a look at some of the most vital things you need to know about mortgages.
You must consider how long you wish to lock in for –
First and foremost, when it comes to taking out a mortgage, you should consider how long you wish to lock in for. If you are committed to a long-term mortgage, and see yourself realistically living in the property the mortgage is taken out against for a long time, then you may wish to go with a low tracker mortgage, or a fixed-rate mortgage, as these offer early redemption charges.
This means that with an ERC if you were to decide to opt-out of the mortgage early, you would be fined various penalties, so you would literally be wasting money. If, however, you see yourself there for a long time, these mortgages could be ideal.
You must get a large deposit together –
Okay, we all know how unstable the economy was not too long ago, and we know that things are still not right now. Because of this, it isn’t the monthly mortgage payments that people would struggle with. It is getting together the minimum 10% deposit to purchase a house with in the first place.
If you wished to take a mortgage out on a £110 000 property, you would need to save £11,000 for the deposit, which is not small money. The larger the deposit, the better the deal you will gain. Put simply, the larger the deposit, the smaller your monthly payments will be, making the property that much more affordable.
Try to overpay –
One of the greatest feelings a property owner can experience is paying off their mortgage and legally and legitimately owning their house. Most mortgage companies allow for overpayments, which means that the more you pay, the quicker your mortgage will be paid off. There are generally caps on overpayments for the year, but even so, if you can afford to overpay slightly, it is well worth doing.