Mortgage Help Please.....

Ety

Hello Everyone,

Help would be appreciated....

I am after a mortgage which I am going to spread over 25 years but hoping to pay it back in a lot shorter period. Therefore I need no repayment and settlement charges.

I'm just struggling a bit with all the jargon etc - is it a risk to either take a tracker or fixed rate with the current climate?

Could anyone recommend anything!

Thanks in advance,
Ettx

herbiesjp

When you say

but hoping to pay it back in a lot shorter period

.

How short is that period you are aiming for?

DawnW

most seem to allow some overpayment within the fixed period. I can (and do) overpay by 10% per year without incurring early repayment charges. Mine is with C&G. Why not speak to a whole of market broker and get him to show you all the options?

Ety

herbiesjp wrote: »

When you say .

How short is that period you are aiming for?

Thinking of about 15 years.....

Thanks Etyx

herbiesjp

Having a tie-in for 2 or 5 years would not really affect you that much then.

Most deals would still allow you to make overpayments and effectively reduce the term of the mortgage much the same way as you highlight

The choice of fixed or tracker has to be based on your attitude to the risk of rate movements but also your affordability i.e if you have £100pm left over at the end of the month I would suggest a fixed rate for you, to safeguard against potential rate increase.

If however you have £1000pm left over at the end of the month from earnings, then it is up to you whether you want to take a gamble or rates going down and looking at a tracker rate - however rates could go up and then make your deal more expensive than a fixed rate that you could have opted for

Have you got a full budget planner covering your monthly income/expenditure?