Five Year Fix, Five Year Plan

I've not even got a mortgage yet, but here I go.

I'm finally getting on the housing ladder and settling, after living around the country for the last decade. I've been in a position where "I'm just about to buy" for about 8 years for various reasons, so while I've not spent well, I could have saved better instead of leaving it all in cash "because I'm about to use it". Ah well, hindsight is 50:50

I'm 35, single, and it's just me and a cat (The Reluctant Roommate, who tolerates my presence because I'm useful at opening sachets). Maybe I'll look into the single bit once the housebuying is done.

I'm due to exchange on a newbuild in the next week or so: cost is £320,000, which is excessively stretching myself in terms of what is lendable. Hopefully hindsight won't be 20:20 there. Mortgage will be £240,999 (product fee rolled in), fixed for 5 years. I still don't know if a 5 year fix will be the right thing financially, but emotionally/mentally having that security is the right thing, especially with the stretching myself part. Luckily I've been renting for so long I've got most of the basics sorted, so will be able to add furniture as and when.

Until now, I've been doing that mad balance where I knew I needed to save like crazy for a house deposit, but also knew I needed to save longterm because I don't want to work forever, and I also want to experience life now! This diary is going to keep me accountable after one of those objectives disappears (she says, hopefully).
Start mortgage date: August 2022; Start mortgage amount: £240,999; Original mortgage free date: August 2056
Current mortgage amount: £233.529.75
Start student loan 2012: £29,750; current student loan: £11.400.50; OP offset fund: £750


  • HotDog2020
    HotDog2020 Posts: 648 Forumite
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    edited 21 May 2022 at 8:05PM
    Hi Merlins Beard,

    Good luck with your quest, and that is an impressive sized mortgage, I would be a little scared in this climate. If I was you and (I have with mine) I would have done a ten year fix and do the maximum op to bring down the mortgage if we see the bank raise rates ongoing - what I am trying to say who knows how long the rates will rise for. The cost of covid was great, will this impact future interest rates, who knows, but the climate is not good at present, so you were very brave to take on such a huge mortgage you have the right attitude and op are sensible. I would use the OP calculator and mess around with the figures on the MSE site also to consider is how much you can OP by on your mortgage I can OP by 10% per annum of mortgage figure. 

    Also having an emergency fund is wise, it is the first thing that should be saved up if you can do that and OPs you'll be doing well. So good luck and I look forward to reading your achievements.
    April Missions:-

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