Blog: How to navigate your next mortgage decision

Lots of questions are naturally popping up for many around mortgages in recent times with interest rates on the rise. Do we stay on a variable rate? Should we lock in now for 3, 5 years or longer?

There is understandable uncertainty when it comes to interest rates and just how high they might go. The answer to that is unknowable as we simply can’t predict with accuracy when we will get a handle on the current rising costs of goods and services (inflation). We’ve become so accustomed to this low interest rate environment we’ve forgotten how unusual it’s been, historically speaking. We now reach something of a reset moment.

However, whilst we are not mortgage specialists we have a good understanding of us humans and I feel it’s important to note the following suggestion when making your next mortgage decision.

Rather than stressing about ‘what happens next with rates’ (you have no control over world events) focus on the emotional side for you and your family. Do you place the greatest peace of mind in knowing now what you pay each month, or are you comfortable riding the variable rate (which rises/falls with Bank of England base rate changes, not necessarily in an exact manner) and seeing where it takes you? With the latter you do this in the knowledge the gamble may pay off financially for you, or prove disastrous.

With a fixed rate, worry less about the ‘but what if interest rates drop off in X year’ and focus more on what it gives you emotionally now.

It is certainty you value, or are you comfortable riding the wave and seeing where it takes you? That, is the key question to ask, with the emotional answer aiding the financial dilemma.

Once you have your answer, commit and don’t look back.

Get in touch at team@spentwell.co.uk for our visual insight into your future. We can show you how things can evolve over time using our visual insight tools, giving you peace of mind your on the right track.

Keith Boyes

Managing Director

Chartered Financial Planner

Spentwell.

Guidance only. If in doubt, please seek professional advice from a fully qualified mortgage professional.