For many of us, owning a home is a dream come true. Most of us look forward to getting the paintbrushes and overalls out and turning a new house into a beautiful home. However, being a homeowner is not always glamorous. There are additional responsibilities that come with being a homeowner and some pitfalls to try and avoid. Here are some tips to help you steer clear of trouble.
Keeping up with mortgage payments
If you’ve taken out a mortgage to pay for your new home, you are responsible for keeping up with repayments. In most cases, people pay a monthly sum for a fixed term. You can also choose a variable rate, which many mean that the amount and term vary. If you don’t keep up with mortgage repayments, this will affect your credit rating. You may also be at risk of losing your home if you can’t keep up with the agreed payment schedule.
If your credit rating is poor, this will limit your chances when it comes to applying for loans and mortgages in the future. If you have bad credit, you represent more of a risk to lenders. If you are having trouble paying your mortgage, seek advice. Sites like https://www.nidirect.gov.uk/articles/mortgage-arrears-or-payment-difficulties may be useful. It may be possible to come to a revised agreement, or to remortgage. For more information, take a look at www.1stukmortgages.co.uk/bad-credit-remortgages/re-mortgaging-with-a-dmp.
Dealing with maintenance issues and home insurance
If you’ve been renting, you’re probably used to calling a landlord when things go wrong. When you’re a homeowner, you are liable for repair and maintenance costs. Sometimes, it’s impossible to avoid problems at home. But there are steps you can take to reduce the risk of maintenance troubles. Keep up to date with scheduled electrical and boiler checks. Fit smoke and carbon monoxide detectors. Make sure that any minor faults are seen to quickly.
It’s always advisable to take out home and contents insurance as soon as you move into a new home. This will provide you with financial assistance if you need to make repairs. You may need to claim if your home is damaged as a result of burglary or adverse weather conditions, for example.
Coping with unexpected costs
Owning a home is often an expensive business. Just when you think you’ve got everything sorted, unexpected costs can creep up and cause panic. A boiler on the blink or a leaking ceiling can result in thousands of pounds worth of repair bills. Try to plan ahead and have a contingency fund in place. Take out comprehensive insurance policies where possible. Consider investing in extended warranties when you buy electrical appliances.
Owning a home has many benefits. But it’s not always plain sailing. Follow these steps to try and navigate your way and avoid potential obstacles. Keep up to date with mortgage payments, and seek advice if you’re struggling. Don’t bury your head in the sand. There are often solutions, and the sooner you find them, the better. Check appliances regularly and stay on top of maintenance tasks. Invest in home insurance and consider taking out additional cover for valuable items.