Five Year Fix, Five Year Plan

in Mortgage-free wannabe
300 replies 15.8K views
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: £238,317.76; OP offset fund: £1250


  • edited 21 May 2022 at 8:05PM
    HotDog2020HotDog2020 Forumite
    42 Posts
    Fourth Anniversary 10 Posts Photogenic
    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.
    Mortgage start date 11.04.2017 £59,678.39
    Mortgage end date: 12.04.2052
    Term: 35 years
    Mortgage current amount: £48964.46
    Difference (paid) through fixed rate repay and overpayments: £10713.93
    Credit card debt: £545
    Emergency Fund: £0.00
    Goal: Overpay £25 P/W
  • Merlin's_BeardMerlin's_Beard Forumite
    937 Posts
    Fifth Anniversary 500 Posts Name Dropper
    Thanks HotDog. It is large, but I was trying to balance that against the risk of house prices going up and being priced out of what I wanted, so I just decided to go for it. Saving a deposit has been a game of keeping up with house prices over the last 5 years and it's disheartening watching your options disappear out of price range, or just no houses being for sale. Right place, right time.

    Thankfully I've got a fairly stable and recession-proof job that's currently experiencing a recruitment crisis, especially for experienced staff willing to work FT, so it gives me a solid base to make risks from, and if I end up going without to make ends meet, it is just me tightening the belt.

    As far as OPing goes, I'm trying to get the right balance with that and pension and long term savings as well instead of putting all my "long term saving" eggs in one basket. Diversifying is just another way to spread the risk!
    Start mortgage date: August 2022; Start mortgage amount: £240,999; Original mortgage free date: August 2056
    Current mortgage amount: £238,317.76; OP offset fund: £1250
  • killerpeatykillerpeaty Forumite
    2.4K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    Honestly did not know about what Brexit did to your sector, but it's interesting. I have questions but feel free to ignore. Is there no bridging qualification so that an unrecognised qualification can be converted? Why are more women vets? How many smuggles with the animals are too many?

    I'm glad you got a raise, as £35k seems low for a decade of experience to me! I dunno, that amount of studying and experience, it just seems barmy.
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