Big fat mortgage - bit scared now!

ailuro2

If you want the security of knowing where you are for the next five years over the paying more or less interest gamble, then fix. We do, but did so at a time when capped rates were available,for the best of both worlds.

POSSETTE

we took a 10 year fixed rate out 2 years ago,fixed at 5%,i think im pretty safe in having this,its with the Norwich and Peterborough,who i can highly recommend. :T we have also moved house in the last 6months, so it was comletely portable,and there were no charges for this.We have seen 2 increases in general since and feel quite safe in the knowledge our mortgage isnt going to rise till its nearly done, it ends in 12 years!!!:beer:

mi-key

If you can only cover a 1% raise in rates then I would be very careful as it sounds like you are over borrowing by a lot !

MascaraMinx

Thanks for all your comments. I think we could be considered to fall into the overborrowing category, but as we'll be taking a fixed mortgage it doesn't matter that we can only cover a 1% rise at the present moment, because we won't need to. In 3 years time, we expect our financial position to be improved through promotion and career development, as so should be able to meet higher rates by then if necessary.

We have decided to go with the 3 years so I suppose only time will tell now eh?

p.s. Mean Machine - don't worry it's a victorian place with original features, no new build executive penthouse for us thanks!

richgirl

a 3 year fix souunds about right.

natwill_3

Sounds like a good idea to fix for three years at least, I have just done that.

Like you I decided against five years...and agian like you buying on the central line in zone 2...

I think in three years if IR do rise..it gives you time to save, consider a lodger, get that promotion etc...

Just don't go mad now all your debt paid off and rack it up again..:-)

Best of luck

natwill_3

I forgot to add, make sure you have a long lease and no expensive renewals in the pipeline!

MascaraMinx

Yes, the lease is 900+ years so no worries there

We're also thinking of a contingency plan to convert the loft if we were to get stuck there should anything go wobbly with the market. And you're right about not racking the debt up again - have been lurking in the debt free wannabe board to remind myself how to save rather than spend.........!!

natwill_3

sounds like you are doing the right thing IMO

I wonder and was going to start a thread on it, will there be a time when zone 2 london is out of bounds unless you are rich? we think we should be able to afford to buy there and its hard now but with less of a suppley and increased demand it may be a luxury in years to come..just my thought as my mum said 30 years ago notting hill was a pit and no one wanted to be there!

MascaraMinx

Would be an interesting thread. It's the same with Islington - that area used to be a hole too (parts of it still are) and now it's just behind Notting Hill price-wise.

I don't know - there are many parts of Zone 2 that are still rough inner-city areas that you just wouldn't want to live (Bethnal Green/ Whitechapel as an example) but the fringes are slowly becomg "gentrified" (if that's the right word!) or marketed as trendy and bohemian. This is pushing the prices up in even the dodgiest bits of london - Harlesden (Zone 3 Bakerloo) features on Time Out guide's top list of up and coming areas in london, and I can tell you from personal experience that is a scary place to live.... who knows what will happen?