24 Sep Your mortgage isn’t the only thing that deserves a regular review
Most of us are pretty good at remembering the obvious things.
Your car goes in for an MOT every year.
Your boiler gets serviced.
You update your phone.
You might even review your broadband when the contract comes to an end.
But when was the last time you reviewed the financial decisions that protect your home and your family?
For many people, the answer is the day they collected the keys.
The truth is, life keeps going after you move in.
Since then you might have changed jobs, received a pay rise, started a family, become self-employed or paid off other borrowing. Any one of those changes could affect your mortgage, your insurance needs or your longer-term financial plans.
That’s why it’s worth reviewing more than just the interest rate.
Your mortgage
If your fixed-rate deal is coming to an end in the next six to twelve months, now is a good time to start thinking ahead. Many lenders allow you to secure a new deal before your current one ends, which can give you more options and one less thing to worry about when the time comes.
Even if your deal isn’t ending soon, it’s still worth asking yourself whether your mortgage still reflects your circumstances. The mortgage that suited you five years ago may not be the right fit today.
Your protection
Buying a home is often when people first arrange life insurance or income protection.
Then… nothing changes.
Or at least, the policy doesn’t.
Perhaps you’ve welcomed a child, changed employer, increased your mortgage or become responsible for more of the household income.
Protection isn’t something you buy once and forget about. It should evolve as your circumstances do, giving you confidence that the people who depend on you would still be looked after if the unexpected happened.
It’s surprising how many people write a will when they buy their first home and never look at it again.
But families grow.
Relationships change.
Children arrive.
Grandchildren arrive.
Financial circumstances change too.
A will should reflect the life you’re living now, not the life you were living years ago.
Reviewing it every few years, or after a significant life event, can help make sure your wishes are still clear and your loved ones are protected.
A simple annual habit
You don’t need to spend hours reviewing everything.
Just set aside a little time once a year to ask yourself a few simple questions.
- Is my mortgage still right for me?
- Does my protection reflect my current circumstances?
- Is my will still up to date?
If the answer to any of those is “I’m not sure”, it may be worth having a conversation.
After all, your home is probably your biggest financial commitment. It makes sense to make sure everything around it still fits the life you’re living today.
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