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Jan 12
Boost your savings then use an offset mortgage calculator to make your mortgage easier to manage
By Mortgage Calculator on January 25, 2012If you already have a good amount of savings you may feel it is time to start looking into buying a property. Having a large deposit will make you a more attractive customer for mortgage brokers and will also give you more security when it comes to making repayments. However, you might still want to boost your savings a little before using an offset mortgage calculator to see how much you could save on mortgage repayments. An offset mortgage can also help you to pay off your mortgage quicker, meaning your property is yours outright in a short space of time.
Compare an offset mortgage with a buy to let mortgage calculator or an interest only mortgage calculator to see what a difference savings can make to your repayments (you can find a free mortgage calculator on most comparison websites or by doing a simple Internet search).
To boost your savings there are a few options you can take to ensure that you do not go without or struggle while you are building up your savings account. Firstly, make sure you have a good savings account which offers a good rate of interest on your savings. The more money you have in the account the more interest you will accrue over time. Do your research to look for the best accounts and if you already have a savings account speak to your bank to talk about switching to another bank to see if they will match the deal offered to you by another company.
Look into tax-free allowances and make sure you use all the ones available to you to make sure you are not overpaying on tax when it comes to your savings. You can find details about tax-free allowances online and you can use comparison websites to see which are the best accounts offering the highest savings on tax.
Finally, try to set up a manageable direct debit which goes straight into your savings as soon as your regular wage comes in. Often people spend money on luxuries that they neither need nor really want just because the money is in their account and if this money has already been moved into your savings you will find that you don’t really miss it and still don’t feel hard done by without the extra money.
Remember that with an offset mortgage, the more money in your savings the cheaper your mortgage will be in the long run, making a little extra investment at the beginning pay off in the future.
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