If you are currently renting your home, you may have thought about how your financial situation would look if you were to get out a mortgage and buy a property for yourself…
There are a number of interesting debates on this topic, here we will delve into some of the key reasons for taking out a mortgage to buy your own home.
Of course every rose has it’s thorn and it’s important to analyse mortgage rates and inflation against your own situation before making a commitment.
1. More Affordable Monthly Payments
By getting a mortgage on your home, you take away the landlord’s cut of your monthly payments. So depending on the term of your mortgage, you’ll often find it works out more affordable than paying rent on a similar property and thus decreases your household bills.
2. You Gain An Asset
What’s more, by taking out a mortgage on your home, you’ll find yourself with a financial asset that you haven’t had before. The truth is, we all need somewhere to live and that means committing our finances towards accommodation, whether we rent or have bought our home, with this in mind it makes sense that we can work towards owning a substantial financial asset while we’re at it.
3. Freedom To Make a House A Home
Owning rather than renting a home, can give you more freedom in how you make your property into a home. When renting a property, there is often structures around what you as a tenant can do to the property, even down to the colour of paint on the walls!
You will need the permission of the landlord to make changes which understandably they will be reluctant to approve. Take out a mortgage on your home, and you’ll have a great deal more autonomy over what you can do, from the wallpaper to the structure, giving you the opportunity to make it work for you.
4. Make Your Property Work for You
Though it’s not always the case, owning your home can give you the opportunity to make money in a way renting a property does not. It might be you could take in lodgers through AirBnb or even though longer term lets – you also have the potential to rent out your property in the future.
Just remember, if you are looking to buy a property through a shared ownership scheme such as the help-to-buy or first-time buyers scheme, there are often restrictions on subletting your property or making structural changes to the property. If this is something you are interested in, make sure you understand the small print before you sign up, talk to an experienced mortgage adviser to find the right mortgage for you and to guide you through the process.
So there you have our 4 top reasons why you should get a mortgage on your home, from reducing your household bills when compared to renting, to providing you with a substantial financial asset that you could potentially make work for you.
