Here are some top home expenses to consider before buying: This can include electrical equipment from TVs, computers to washing machines, plus your furniture, curtains and clothes and personal effects such as bicycles, mobile devices and jewellery.New buyers can be caught off guard by the costs of owning a home. What does contents insurance cover?Ĭontents insurance covers your possessions within the home against insured events. The policy also covers other permanent structures on your land, like walls, garages and outbuildings. What does buildings insur ance cover?īuildings insurance covers the cost of repairing or rebuilding the structure of your home against damage by fire, storm, flood and other similar cases. It’s worth making sure you know exactly what’s covered as a result of an insured event. When you rent your property your landlord/lady will have a certain level of insurance in place to cover their property, but this may not suit your demands and needs. If you own a property, you will most likely have buildings insurance as a condition of your mortgage agreement. Whether you rent or own a property, insurance is an important consideration when budgeting for household bills. Without re-mortgaging you could end up paying thousands more for your home over the course of your repayment term. This means that the interest you pay on your mortgage could change every month. If you don’t re-mortgage to more cost-effective mortgage deals throughout your repayment term, you could find that you’ll eventually end up paying your lender's standard variable rate. You’ll have to check whether your agreement allows you to do this, Some lenders may incur a charge if you overpay by more than 10%, so check before you do - otherwise you’ll be hit with a hefty fee that wipes out the benefit of paying more than you owe. So, if you’re due a performance-related bonus every year from work, set this aside to pay off your debt sooner. One of the quickest ways of paying your mortgage is paying more than you need to every month or every year. Once added to your mortgage repayments the likelihood is you’ll be paying interest on your additional fees as well as your repayments, which may increase your monthly payments. Read the details of your mortgage agreement and make sure that you’re only paying for your mortgage repayments, rather than additional fees that could have been more cost effective to pay upfront. We love home ownership in the UK, but are we getting the best deal when it comes to paying our mortgage? Here are three steps to paying off your mortgage that may save you money in the long run. The smart meter sends data directly to your supplier. There are different tariffs to choose from and when you get your bill, at least you know it’s accurate. They help you to see how much gas and electricity you’re using each day, both in money terms as well as energy units. Smart meters are an excellent way of staying on top of your energy usage. If you end up in credit, some energy providers may offer an interest rate on the amount while it sits in your account. If your usage proves to be more or less than anticipated, then the direct debit amount will be calculated to try and avoid any surplus or shortfall in your account. Your energy provider will work out an estimate of what you’re likely to use over 12 months and then spread that amount across 12 monthly direct debits. Monthly direct debits can be a good way of avoiding paying a large sum every quarter or year. At the end of each period, you’ll be billed for that amount. Paying quarterly or annually means you will be sent a statement for the exact amount of gas and electricity you’ve used, provided you’ve been supplying them with accurate meter readings. You can choose to pay quarterly, monthly or annually for your gas and electricity.
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