Getting Rich Through Property
If you want to accumulate wealth and be worth money along the line, then you need to build up your assets as early as you can.
Therefore moving out of renting and getting your first house, whilst a daunting and difficult move, should be done as soon as you can. Money spent on rent in a sense is wasted money as you don't start to build up a nest egg for yourself. So get on the ladder as soon as you can.
So what type of mortgage should you look for? Well, most people look for a repayment mortgage. With an interest only one you pay off the interest each month but need to pay off the lump sum at the end, a daunting prospect for many which is why the more gradual repayment mortgage attracts more people as you pay off the capital sum bit by bit in addition to the interest on the loan amount.
When it comes to mortgages you also need to work out which type suits your financial siutation and general attitude to money best. Whilst there are the traditional options of variable or fixed rate mortgages, there are also more mechanisms such as discount and tracker mortgages to consider and contend with. Why not also take some time to find out about home loans.
One of the best tips to get wealthy over time is that, if you can afford it, try to overpay your mortgage as much as you can each month.
The reason is compelling - by overpaying around £50 each month you can reduce the total amount that is due back by thousands over the length of the mortgage; add on another £100 each month and you really do chip into the total amount that you need to pay back.
Therefore it pays to have a more flexible mortgage and to try to get one whereby you can overpay without penalties - some mortgages do not allow you the flexibility to overpay or have a limit on how much you can overpay each year, for instance.
As a final tip to wealth on your mortgage, remember to look around for remortgage deals every few years. The best deals go to prospective customers rather than existing ones and with careful planning you can keep the interest rate attractively low for the majority if not the duration of your mortgage. Sometimes telling your current provider that you are thinking of moving to a better deal elsewhere will encourage them to look into what they can do for you and make them think about lowering your interest rate if there are better deals for you out there in the marketplace.