Couple decide to fix interest rates for a year

SOLD: Jaye Riddle and Sasha Woodard have bought their first home in The Lakes. PHOTO/GEORGE NOVAK

Sasha Woodard and Jaye Riddle have opted for a 12-month fixed rate to allow themselves the chance to secure a lower rate in a year's time.

The couple moved back to New Zealand from Australia at the end of last year and got advice from Rothbury Mortgage adviser Josh Martin to help them into their first home.

Based on the way interest rates had been going, they decided on a year fixed rate so they could be free to reassess in 12 months.

They would settle on their three-bedroom in The Lakes in two weeks, Miss Woodard said.

Interest rates had already started dropping when they were house hunting and despite expecting them to continue dropping, Miss Woodard was relieved to get into the market.

"I remember seeing 7 per cent and not really knowing what it meant [before house hunting] and seeing it how it is now, you'd be stupid not to get yourself into it."

The lower interest rate meant the mortgage payments were only a little more than they usually paid in rent, she said.

"Why pay off someone else's mortgage when you can be paying off your own?"