We had an appointment with our bank yesterday and we were so excited even though we thought it'd just be good to find out what we're working towards and get an idea of how long it'll take us but she said that they'd be happy to offer us a mortgage now (if the credit checks turned out ok). We couldn't believe it! Not that we'd take the one she was offering us (25 years, 10% deposit and not great rate...)
She went through with us all the different types of mortgages and what difference it makes to have a 15% deposit instead of a 10% - a HUGE difference btw! Also we saw the difference of 20 years VS 25 years, that makes an even bigger difference. We want to have our mortgage paid of in under 10 years and seeing the repayment amounts showed us that we could definitely do it :)
The next challenge is getting them to agree to a shorter term, even 15 years maybe, that should bring our total repayment down a lot and give us a better interest rate while still giving us breathing room of 5 years minimum payments if we need it for some reason. We don't want to be 'strangled' by our mortgage!
The problem there is that the bank doesn't really take into account how good we are with money and how little we live on, everyone is tarred with the same brush with regards to what they think you need to have available for living expenses. The main thing they look at is the money coming in and for us it's about average atm.
So right now we'll keep building up more of a deposit and we'll be focusing on keeping our expenses down so that when we go back they can clearly see on our bank statements what we live on each month. We are so happy just doing what we're doing atm that in a way we're glad to be staying here in this house for a little longer preparing for our dream where we'll have this lifestyle again but it will be ours :)
I know lots of you have mortgages, some nearly paid off (well done Mr + Mrs SFT!), most of you trying to pay it of quickly, is there any advice you'd give to a young couple just getting into the whole mortgage thing? Any lessons you learnt the hard way that we could maybe avoid?