One man and his mortgage..

In my last post I literally brushed over the basics of which mortgages were available and intended to go into more detail in my next post. I thought it over and remember that when I was researching which mortgage would be best for myself I always found it a chore to read big long posts so instead I shall write just one small post on each type to give you a quick oversight of the option.

What is a fixed rate mortgage? 

A fixed mortgage is literally as simple as the name suggests, it has a fixed interest rate and runs for a fixed amount of time for example 2, 3 or 5 years. This means that your monthly mortgage payments will be the exact same amount each month until the mortgage expires.

If you like to keep a close eye on your monthly outgoings then this is the perfect solution, you can prepare and manage your money knowing the exact amount you will be spending each month.

So you may be thinking that a mortgage at a fixed rate is the perfect solution, unfortunately that is arguable. Anyone who watches the news or picks up a newspaper will know that mortgage rates can go down just as quickly as they go up, this means that you could end up continuing to pay your fixed rate while others on a variable rate are paying less because their mortgage rate has lowered.

I will talk in more detail about variable rate mortgages in my next post

-Peter Patching

Hello readers!

I’m new to this ‘blogging’ business but figured what better way to get into it than to talk about something I have recently had a lot of experience in.. mortgages!

Just like many others out there I was working a well paid job which let me cover the cost of my mortgage and still enjoy the pleasures of life but unfortunately after loosing my job I found myself in a tricky position.. how was I going to continue to pay my mortgage?

Choosing a mortgage is hard enough to start with since there’s such a wide range of options such as:

• Fixed rate
• Buy to let
• Offset
• Discount & Tracker
• Capped

Choosing the right mortgage in the first place can help in the long run since some may end up eating up your whole wage packet each month whilst others such as interest only allow you to save money to one side and pay the mortgage at the end of the term which is ideal if you’re short on money at some point. Obviously you have to manage your money very carefully whichever option you choose since we all know that your home could actually be repossessed if you fail to keep up payments.

Hopefully all the people out there in the same position as myself will find my future posts to be helpful.

-Peter Patching