Please note all of the characters in these stories are fictional. However all of the circumstances that have been mentioned in these stories can and have happened in the past.
Finance your home
With thousands of products to choose from, the mortgage market can be mind–boggling. There are standard variable rates, fixed rates, capped rates, discounted rates, tracker rates, offset mortgages, flexible mortgages… Which do you go for? Your circumstances can change and what’s right for today might not be the best solution for the longer term.
Whether you’re financing the purchase of a new home, remortgaging or investing in a buy–to–let property, we can help you find a product that’s not only about what you can afford, but is also closely geared to your short–term needs and long–term goals.
We can also offer expert advice on related insurance, including life cover, income protection, mortgage payment protection and house buildings/contents cover.
Jenny and Steve’s story
Jenny and Steve are a professional couple in their mid 20s. They’re living in a two–bedroom flat in the city, on which they have a relatively small mortgage. However, they’re planning a family, so are looking for a house in the suburbs with more space for the children.
Both have well paid jobs in the IT industry, so currently have a high disposable income and some cash savings. However, Jenny intends to stop working full–time when she becomes a mum. She’s hoping to get part–time consultancy work, so her income may fluctuate considerably.
Jenny and Steve find their dream home. It’s an elegant four–bedroom, three–story Edwardian semi in a quiet cul–de–sac, with a large garden for the kids to play in. It’s also close to the local primary school. However, it’s at the very top end of Steve and Jenny’s price range and they’re a little concerned about taking on the level of mortgage debt required.
Jenny and Steve’s future without expert mortgage advice
- They choose a standard variable rate mortgage on a 25–year term. Unfortunately, within five years bank rates have doubled. The couple now have two children and Jenny is struggling to balance motherhood with finding well paid work. They struggle to meet their monthly outgoings and can’t afford a holiday.
Jenny and Steve’s future with financial planning
- Steve and Jenny opt for a mortgage with the interest rate fixed for five years. With a set–up fee it costs them more initially. However, while bank rates rise, their mortgage payments stay the same. Steve’s income covers the mortgage and day–to–day expenses. Therefore, anything Jenny earns can be invested to help cover any rise in mortgage payments when the fixed rate term ends. If rates stay the same or go down, they’ll have a fund for home improvements, holidays or the children’s education.
- They take out a mortgage protection policy which covers their payments if either of them is made redundant. Therefore, Steve’s job uncertainly doesn’t give them any sleepless nights.