Planned enough as FTB?

Rogue474

Hello all, after the recent economic events I thought that I should sign up to the forums.

Times certainly have become frightening.
As first time buyers we purchased our forever home in January 2022 which was 262k in the North East, now valued at 286k as per the Halifax index.
We were very fortunate to get a 5 year fixed at a rate of 1.16% which expires 01/01/27. Our current equity is 93k with an out-standing balance of 193k
I currently earn between 55 to 65k per year so didn't that that I had over stretched. I retained 70k in the bank as an emergency buffer. My plan up until 2026 is to keep saving towards that buffer if work permits. Would you overpay each month or pay a large sum towards the end of the fixed? My partner is also looking to start a job soon. I always plan for the worse, just my nature. I hope that I have done enough to ride out the storm? I'm not sure were interest rates will end up or the cost of living. If the interest rates hit 8% then I would be paying double what I'm paying now.

K_S

@rogue474 Personally, given the savings rates on offer right now ( https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/ ), I would not overpay on a 1.16% mortgage.

I would keep any savings meant for overpayments in a separate savings account marked for the mortgage and then when it comes to remortgage time in 2026-27, you can decide whether to use it to pay-down your mortgage or something else.

Rogue474 said:

Hello all, after the recent economic events I thought that I should sign up to the forums.

Times certainly have become frightening.
As first time buyers we purchased our forever home in January 2022 which was 262k in the North East, now valued at 286k as per the Halifax index.
We were very fortunate to get a 5 year fixed at a rate of 1.16% which expires 01/01/27. Our current equity is 93k with an out-standing balance of 193k
I currently earn between 55 to 65k per year so didn't that that I had over stretched. I retained 70k in the bank as an emergency buffer. My plan up until 2026 is to keep saving towards that buffer if work permits. Would you overpay each month or pay a large sum towards the end of the fixed? My partner is also looking to start a job soon. I always plan for the worse, just my nature. I hope that I have done enough to ride out the storm? I'm not sure were interest rates will end up or the cost of living. If the interest rates hit 8% then I would be paying double what I'm paying now.

ACG

Im with KS. 
Bang it in savings accounts. You could be looking at 4-5% interest rates in the near future. 

Rogue474

Thank you both, I will start saving more and change to a better savings account. And if rates do start to drop a little by then I should be covered. Lets hope things settle down before then.