While it’s most important for homebuyers to think about every aspect of their loan options, it also makes sense to compare home loans so you can take advantage of great honeymoon rates. Having a few years of fixed interest rates could help you save money for future repayments.
Comparing Honeymoon Rates
Many lenders use honeymoon rates to attract new clients. These fixed rates can last from one year to ten years. In most cases, you get the lowest honeymoon rate when you choose a small introductory period. One year will usually give you a considerably lower rate than ten years.
It’s important to compare these honeymoon rates to make sure you save as much money as possible. Interest rates can differ considerably from lender to lender. Ask the home loan companies to give you comprehensive lists of their honeymoon rates. That way, you can compare them side by side.
Consider How Interest Rates Might Change
Having a low introductory rate can help you save money, but when you compare home loans you also need to think about how your rate will change after the honeymoon period. In some cases, you might find that higher interest rates offset the savings that you might get from the honeymoon rate. In other cases, though, you might find that you still get a good deal even after the introductory period ends.
If you expect your financial situation to change dramatically over the next five to ten years, then you could benefit from low honeymoon rates even when you know the rate will increase considerably in a few years. Honeymoon rates can make your home more affordable for one or more years while you save money and earn a higher income. When your income increases, you can afford the higher interest rate.
Before you can decide this, though, you have to compare all aspects of the loan and take an honest look at your finances.
This post was submitted by Tomorrow Finance – An Australian Mortgage Comparison Website.
Shopping for new furniture is something of a national obsession in the UK – just head to your local chain DIY store on any given weekend for further proof of this fact. There’s no getting away from it – we all like to give our homes a facelift from time to time, whether that’s replacing what’s broken or giving a room a new theme with some tastefully chosen new items. As anyone who’s spent an afternoon idly browsing the aisles in Ikea can attest, a quick trip for a desk and chair can quickly turn into a three or four figure spending splurge.
After a fun afternoon at your local Swedish interiors store – and a bank holiday spent putting up your new flatpack miracle – the last thing you may be in the mood for is a call to your home insurance provider. However, that quick call could prove to be a really smart move, especially if the worst happens in your home a few weeks, months of years down the line. Adding new furniture to your home will almost certainly increase the value of its contents – and it’s a wise move to make sure you’re covered for everything contained in your property.
In fact, regularly reviewing your contents is a habit that’s well worth getting into. Getting the best value out of your contents insurance is a fine art – you want to make sure you’re covered for everything, as if a disaster such as a flood or fire occurred, you’d only be covered up to the total value of your contents, even if more damage was caused. However, on the other hand, you don’t want to wildly overestimate the value of your contents, as this means you’ll be wasting money on cover you don’t need. If the value of your contents is £30,000 and you’re paying for £50,000, you’ll be needlessly throwing money down the drain each and every month.
If you’re planning a weekend of flatpack furniture building, it’s also worth checking that you’ve got accidental damage cover as part of your house insurance. As those amusing DIY shows we’ve all seen over the years have proved, swinging the hammer in the wrong place can have disastrous consequences. Make sure you’re covered before, during and after your weekend of DIY fun and the only thing you’ll need to worry about is whether your new pieces of furniture match the carefully-chosen colour scheme
Post by Alex