You’ve bought your first home… now what?
Buying your first home is a pretty big deal, in more ways than one. A house is probably the biggest, most expensive purchase you’ll make during your lifetime. It’s also one heck of a financial commitment.
Scary stuff aside though, buying your first home is also an exciting time and a major achievement. Buying your first home can give you a feeling of security and freedom; it means you can choose (within budgetary limits, of course!) exactly how you want it to be decorated. You can repaint your kitchen on a whim, hang up as many or as few pictures as you like and keep your pet guinea-pig in the living room if you want to. Buying your first home brings a lot of freedom.
With that freedom though comes a few more responsibilities, not least in the way of bills. The first few months in particular of owning a new home can be an austere time with bills – council tax, electricity, gas, water – to be paid along with groceries, possibly furniture and all your other regular expenses. After buying your first home, you’re probably going to want to be as economical as possible, which is where some further independent financial advice can come in really useful.
If you have previously rented or lived with parents or other family members, as owners of the property, they will have had ultimate responsibility for it. Now you own a property, you have that same responsibility. Meaning that if anything goes wrong with, for example, the windows or the central heating or the electrics, it’s down to you to call the right trades people to fix the problem. And it’s also you who has to pay for any repairs.
We are getting a bit ahead of ourselves though. Before thinking about any burst pipes or broken windows, how about thinking of how to avoid having to pay for them? We’re not suggesting anything illicit, we’re suggesting being prepared. Being prepared means having the right kind of cover which will minimise any potential repair costs for your home.
During the process of buying your first home, lenders will insist that you have buildings insurance in place; alongside buildings insurance, you might also want to take out contents insurance to cover the loss or damage of any of your own possessions even though this is optional. Our advice on this matter would be though to weigh up the pros and cons carefully – if you don’t take out contents insurance, you will have a little extra money each month, but if anything happens to your possessions, you’ll have to pay out to replace them.
What all good independent mortgage brokers will do for you when you’re buying your first home is offer to find the best deal for you when it comes to house insurance. If your broker is truly independent, they will look across the whole of the marketplace for the most appropriate cover for you. Some estate agents may try to offer you insurance, but beware that they may be restricted to certain products only which may not be the best products for you.
Your independent mortgage broker can also be a big help if you decide you also want to take out life insurance or income protection. After all, as we mentioned above, your mortgage is a big financial commitment. Should anything happen which restricts your earnings or even stops them altogether, you want to be sure you have a back-up. Both are optional but could be well worth considering if you have any dependent children or you are buying your house with a partner. Life insurance and income protection come in all sorts of shapes, sizes and prices and all good independent brokers will be able to find you the best cover at the best price.
Talk to your broker about all your option and they can help you consider your circumstances and whether life insurance or income protection will be worth having, even if just for peace of mind.
For a free mortgage discussion, call Ronan Marrion on 0845 230 9876 or e-mail firstname.lastname@example.org
Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it.