Mortgages are a lifelong commitment.
But there’s nothing quite like having your very own home.
Our 2 year mortgage deal is coming to an end shortly and we’ve had the renewal deals through. Whilst there are some rock bottom mortgage deals out there at the moment, we decided that as we’re self-employed and didn’t earn an awful lot last year, and our current mortgage company not needing details of income to transfer us onto a new deal – a new company would need this – it’d be better to swap onto one the deals available.
The next decision was how long to lock ourselves in for at a certain rate. There were a few options available, a 2 year fix, 3 year, 5 year & 7 year. Everything but the 7 year worked out cheaper than what we’re currently paying every month and the bonus of these was that there was no fee – some mortgages come with a fee of around £1000. I hate talking about Brexit, I’m sick to the back teeth about it as no one knows what’s happening with it. With that said, the fact that no one knows what’s happening, the thought of locking ourselves in for 2 years and then coming out of a mortgage deal we’re happy with into the unknown, isn’t ideal for anyone, especially self-employed folk.
So we decided to go for the 5 year fix. Whatever happens with Brexit will happen, but we’re locked in at a rate we are happy with, for a house we are staying in. It’s scary to think about 5 years down the line – we’ll be celebrating our 12th anniversary and both kids will be in school. We might not have got the best deal financially today, but long term we’re keeping ourselves happy and stress-free as the unknown approaches, which is priceless. We’re doing what works for us. Make sure you look at your mortgage options and do what’s right for you & your family.
You can find out more about those rock bottom mortgage rates I mentioned over on MoneySavingExpert.