A lot of people probably don’t realise that the best investment ideas are usually the simplest. One of the secrets though is knowing where to go for the lowest risk but with the best return.

Property prices do increase a lot over the years, which is hard to believe as we suffer a terrible downturn. You can still make a decent low risk investment out of property.

When looking for a good property investment remember the age old adage, LOCATION, LOCATION, LOCATION. If you are looking at a property investment then location is number one on your list.

Property prices usually double every ten years in the UK. You can make the most of your property investment knowing this. Great investment ideas are usually the simplest and property is one of the simplest, and best.

A quick example of a property investment, keeping figures simple. Invest in a house for 150k and keep it for ten years. It should be now worth circa 300k.

On that example you should regularly shop around for the best deals on mortgage repayments as we could be talking about a lot of cash. It’s always a great idea to have some cash at hand in case another great investment idea comes along.

**Not so much a great investment idea but using our mortgage overpayment calculator you can find out how to knock years off your mortgage**

OK, back to the article now.

Searching for a good mortgage can be time consuming but worth it in the long run if your investment idea is to be profitable. With property investment ideas a mortgage forms an important part of future profits.

People new to property investment often get their fingers burned by the ups and downs of the property market. They get in late and buy at a peak. Then panic and try to sell in a trough. A sure fire way of losing money equating to a poor investment idea.

If simple equals best then you need a simple system to profit from any investment ideas you have. If you are looking at property, here’s a simple formula…Get in on a trough, get the best location you can, get the best mortgage rate you can, get the best management team you can to manage rentals.

As the wheel is a classic example, simple ideas usually tend to be the best. Don’t confuse yourself when searching for a good investment idea. Simplest is best. Click this link for some good investment ideas

We’ll have a look at what benefits there are to a fixed rate mortgage for you.
We’ll then take a look at an overpayment calculator for your mortgage.
Security comes with the fixed rate mortgage, whereas huge savings can come with the overpayment calculator.

Fixed rate mortgages are one of a few different types of mortgage available.
The interest rate is fixed, usually for a number of years.
Because the interest rate is fixed, so are your monthly payments.

What, if any, are the up sides to fixed rate mortgages?
No need to worry about fluctuating interest rates. Your rate and your payments are fixed.
You can benefit by knowing your monthly payment is fixed which allows you to budget more effectively.

Your payment is locked so it really doesn’t matter what the general rates are doing.
There have been some alarming short term interest rate rises in our recent history.
People on variable rate mortgages are much more likely to be affected by rapid rises in interest rates.

There are a few situations when a fixed rate mortgage may be a bad decision.
If you suddenly have an extra family member and need more space. Or you are simply considering moving home soon.
Any sort of situation like this can cause unexpected charges by way of redemption penalties.

Fixed rate mortgages nearly always come bundled with a redemption penalty.
These charges can be pretty steep, and come at a time when you don’t need the extra stress.
If a charge like this will hurt you then you must think very carefully before taking a fixed rate mortgage.

During the term of your mortgage it’s worth considering paying a bit extra each month if your budget will stretch.
You are not tied to make the same payments for the duration of the mortgage, usually 25 years.
Lenders prefer you to make payments like this but they never inform you that you could pay extra if you wish.

What are the up sides to paying extra each and every month?
The extra payments reduce the sum owed quicker and the result is you save years off the term of your deal.
You also save a lot of money in the process, sometimes a staggering amount.

What does a mortgage overpayment calculator do?
You enter your mortgage details. The amount borrowed, the length, the interest rate etc.
You also enter a figure that you want to overpay. You can play around with this figure.

You get to see what sort of length in years you can knock off.
It also gives you a figure in cash that you can expect to save.
Both the years and cash saved obviously increase if you put in a higher overpayment figure.

You might be pleasantly surprised at the savings to be made.
If you borrowed a hundred thousand at five percent over twenty five years.
You could save over twelve thousand and shorten the mortgage by more than 3 years just by paying an extra 50 each month.

Nice savings on a 50 extra payment. But what happens if you pay an extra 100 though?
We’ll use the same mortgage example figures but pay 100 extra.
This saves you more than 20,000 and knocks a respectable 6 years off the term.

An extra advantage is you won’t have any payments to make during the last few years of the mortgage.
By paying a little extra now, you could easily be mortgage free well before you ever expected.
You won’t hear this info from any lenders though. You need to discover info like this for yourself.

If we go back to the extra 100 each month where we managed to shave six years off.
A six year saving translates into about a forty grand saving in cash.
You can do what you like with this extra as it never needs to be paid to your lender.

There you have a few benefits of going for a fixed rate mortgage.
You get a good night’s sleep and regular level payments.
We also looked into the future and saw some big savings if you can make a little overpayment now.

Well take a look at fixed rate mortgages and how they can be good for you.
We’ll also take a peek at how much you could save with an overpayment calculator.
The fixed rate gives you security for a while & the overpayment calculator might give you a pleasant surprise.

A fixed rate mortgage is a special type of mortgage where you have a fixed interest period.
A fixed period of interest that may be a couple or several years.
The interest rate you pay is locked; therefore your monthly payments are also locked.

What, if any, are the up sides to fixed rate mortgages?
Because your payments stay the same you don’t get ups and downs in your monthly payments.
You can benefit by knowing your monthly payment is fixed which allows you to budget more effectively.

Bank base rates may rise drastically, however yours will be the same because it’s fixed.
In the last few decades we have seen interest rates almost double in a few short months.
If the rates rose drastically over a short term those on variable mortgages could struggle to meet payments.

There can be certain circumstances when a fixed rate mortgage may not be right for you.
The arrival of a new child could mean you need a bigger home and need to move. These are reasons to avoid fixed rate mortgages.
Any situation which sees you changing mortgage can invoke a horrid redemption penalty on you.

Fixed rate mortgages nearly always come bundled with a redemption penalty.
These redemption penalties can hit you hard just when you don’t need it.
These unexpected charges can hurt. Consider carefully whether a fixed rate is the one for you.

It’s worth thinking about paying a bit extra each month in addition to whatever you normally pay.
You may not realise but you can pay any amount over the minimum monthly payment.
It’s not often, if at all, that a lender will tell you it’s possible to pay more than your normal minimum monthly payment.

What are the up sides to paying extra each and every month?
You can easily shave years of your mortgage. Be debt free much earlier.
You also save a lot of money in the process, sometimes a staggering amount.

In what way does a mortgage overpayment calculator work?
You can enter all the relevant figures from your particular deal.
You can then play around by changing the figure you can afford to overpay.

The calculator tells you how many years you will knock off.
You get to see how much money you could possibly save.
Both the years and cash saved obviously increase if you put in a higher overpayment figure.

You may be surprised at some of the savings you can make.
If we take a mortgage of 100,000 borrowed over 25 years and assume you get an average 5% interest rate.
Just by paying an extra 50 every month could see you knock over 3 years off and save over 12 grand.

Nice savings on a 50 extra payment. But what happens if you pay an extra 100 though?
We’ll use the same mortgage example figures but pay 100 extra.
You get to shave over 6 years off the length and over 20 grand saved. That’s pretty good.

An extra advantage is you won’t have any payments to make during the last few years of the mortgage.
Being free of your mortgage chains a few years early is a definite reality if you can pay extra now.
Of course your lender will never tell you this, you have to discover this on your own.

In our example where we saved six years off the length with a hundred a month overpayment.
This shortening of the mortgage by six years saves you another 40,000 or more.
You don’t pay this money to your lender so you get to keep it, either save it or spend it.

There you have a few benefits of going for a fixed rate mortgage.
Not only do you get set monthly payments, you get to sleep easy at night because of it.
We also had a look at a mortgage overpayment calculator and the potential savings that can be had.