Fixed 2 year mortgage offer, but planning on going to university

coffee_fix

Alphamare wrote: »

Another option is to have your baby when you are more financially secure. Sure buy your house. I would fix for longer personally. Have your baby after your partner is finished his course and gainfully employed. Why risk your financial future over waiting maybe another year or two to have a baby!

You're right, waiting to try for a baby is another option... We did think about that (we have thought about that too and still might).


Thanks, I think we will go for fixing for longer!

jackieblack

Just because the interest rate is fixed for a certain length of time doesn't mean you have to apply for a new mortgage when it ends.
The mortgage will continue with your current lender and you can ask for a new fixed rate (if available) or stay on the variable rate.
We've done this several times with a previous lender and never been asked for proof of income when doing so.
This assumes you don't want to move house in 2 years time.
I'd go for a longer fixed rate (in fact we just have! ) at least long enough to cover you until your OH is qualified and earning. That way you can be sure what your mortgage commitments will be and can plan accordingly

Personally, I wouldn't consider having a baby while OH is at Uni - one strain on finances at a time is plenty for me! - plus your OH is going to have enough on his plate while studying, his course may involve placements, he may not have the capacity to be as 'involved' as you both may wish.
Having a baby is wonderful, but can also be exhausting and stressful. Not ideal while also studying

coffee_fix

jackieblack wrote: »

Just because the interest rate is fixed for a certain length of time doesn't mean you have to apply for a new mortgage when it ends.
The mortgage will continue with your current lender and you can ask for a new fixed rate (if available) or stay on the variable rate.
We've done this several times with a previous lender and never been asked for proof of income when doing so.
This assumes you don't want to move house in 2 years time.
I'd go for a longer fixed rate (in fact we just have! ) at least long enough to cover you until your OH is qualified and earning. That way you can be sure what your mortgage commitments will be and can plan accordingly

Thanks, jackieblack - this is *exactly* what I wanted to know! As a complete mortgage novices, we just have no idea on what the process is if we stay with our current lender at the end of the fixed rate. We are definitely planning on staying put for at least 10 yrs at this place. I think it would just be safer at this stage if we go for a 5 year fixed rate rather than the 2 year one.

jackieblack wrote: »

Personally, I wouldn't consider having a baby while OH is at Uni - one strain on finances at a time is plenty for me! - plus your OH is going to have enough on his plate while studying, his course may involve placements, he may not have the capacity to be as 'involved' as you both may wish.
Having a baby is wonderful, but can also be exhausting and stressful. Not ideal while also studying

You're probably right! It's going to be a stressful enough time as it is, tbh. Maybe we'll just concentrate on getting marries, buying a house, having the OH finish uni for now - think we're going to have enough on our plate as it is!!

Thrugelmir

coffee_fix wrote: »

I know it's not much, but we are planning to add to that. I know it will be tight, but we've done the figures and I think it will be do-able

Over optimism is the root cause of many peoples financial issues. As far often there simply isn't enough contingency allowed for in a plan.

coffee_fix

Thrugelmir wrote: »

Over optimism is the root cause of many peoples financial issues. As far often there simply isn't enough contingency allowed for in a plan.

I do understand that. But like I said, we've got over £42k saved up. A big chunk of that will be going towards the deposit and costs associated with buying a house. But I'm the main wage earner and if my OH decides to go to uni, we should easily afford the mortgage repayments based on my salary plus the savings we have, plus his bursary.

The main issue really like jackieblack said is whether we can afford a baby on top of all of that and unfortunately I think the answer is currently 'no.' I guess we'll just have to hold our horses on that front!

jackieblack

coffee_fix wrote: »

Thanks, jackieblack - this is *exactly* what I wanted to know! As a complete mortgage novices, we just have no idea on what the process is if we stay with our current lender at the end of the fixed rate. We are definitely planning on staying put for at least 10 yrs at this place. I think it would just be safer at this stage if we go for a 5 year fixed rate rather than the 2 year one.

Glad to help
Just check with your particular lender (although I think it should probably state on your mortgage offer what happens at the end of the fixed rate term) but usually you will be automatically transferred onto the variable rate (whatever that is at the time) and then what we've always done is to ring them up and ask what other deals they have that we could transfer on to. Often the rates available to existing borrowers are a bit different to what they offer new borrowers and so they don't always publicise these rates, eg on their website.

coffee_fix

Thanks for the advice, jackieblack! I really appreciate it - am definitely feeling less stressed out now

Leon_W

If it's any comfort, in my experience, Coventry have offered good follow on products to existing customers alongside Nationwide.


This is not good news for brokers who make a living by switching people between lenders but that's the way it is.

Mortgage_Mark_2

Don't bank on being able to do a hassle-free product transfer in two years - you will probably have to prove affordability in the same way as for a new mortgage post-MMR, depending on lender.

Mojisola

coffee_fix wrote: »

This will mean that by the time our fixed term mortgage ends (around spring 2016), he will still be a student.

In addition, we are getting married this autumn and will shortly be trying for a baby(!). So potentially I could be on maternity leave by the time we need to get a new mortgage in 2016. Yep, this is a very exciting (and scary!) time for us!

Why rush to do everything in such a short time? I would wait until your OH is settled in work before thinking of having a baby.