Owning your own home

Since then we've toyed with the idea of a terraced place meaning we would be paying less less and it would cover us if interest rates increase (is this something worth considering?) it would also mean we've got a lot more money left each month to do other things.

Have you actually thought about this in any depth?

Of course you should think about what happens if interest rates rise as this will have a direct impact on your monthly repayments. At the moment interest rates are at a historical all time low and how long this lasts for is open to debate, but some of us can remember the ERM crisis in the early 1990s when the Bank of England base rate was as high as 15% for a while.

This page shows the BoE base rate for past 20 years;

http://www.propertyinvestmentproject.co.uk/property-statistics/interestrates.php