We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
a couple of options, help with my maths please!
stolt
Posts: 2,865 Forumite
Hi there we are in a lucky situation whereby i have 275k as a deposit for a 418,600k house.
My initial application was for a 5yr fixed rate with chelsea at 4.29%, £995.00 arrangement fee and a free valuation. This deal is going through credit checks etc all done, should have my offer in the post tomorrow. Interest only payment £516.00 a month.
Seen Abbey have just issued a 3.95% 5 yr fixed deal, £995.00 arrangment fee (payable up front) £400.00 valuation fee. Interest only payment £494.00 a month.
These figures are based on a mortgage of 144k.
Aswell as the 275k deposit we have 155 in dubai that i was hoping to invest for 5 years and get some decent return.
The house we are buying needs some work and extension is needed so my idea was to borrow 65k from abbey on interest only (i have 155k to pay off the majority of the mortgage in 5 years plus what ever returns i get form that being invested.
My calculations suggest despite the abbey having a valuation fee its the better deal fo rme, plus it allows 10% overpayments per year.
My initial application was for a 5yr fixed rate with chelsea at 4.29%, £995.00 arrangement fee and a free valuation. This deal is going through credit checks etc all done, should have my offer in the post tomorrow. Interest only payment £516.00 a month.
Seen Abbey have just issued a 3.95% 5 yr fixed deal, £995.00 arrangment fee (payable up front) £400.00 valuation fee. Interest only payment £494.00 a month.
These figures are based on a mortgage of 144k.
Aswell as the 275k deposit we have 155 in dubai that i was hoping to invest for 5 years and get some decent return.
The house we are buying needs some work and extension is needed so my idea was to borrow 65k from abbey on interest only (i have 155k to pay off the majority of the mortgage in 5 years plus what ever returns i get form that being invested.
My calculations suggest despite the abbey having a valuation fee its the better deal fo rme, plus it allows 10% overpayments per year.
Listen to what people say, but watch what people what people do!!
0
Comments
-
The Abbey deal is £22 per month cheaper.
Mental arithmetic gives us the fact that 60 month at £22 makes £1320 ( ignoring the time value of money blah blah blah )
You pay an extra £400 value fee on day one.
Abbey is the winner.
That is before you consider the 10% overpayment clause.
No Contest................................I have put my clock back....... Kcolc ym0 -
thanks robert. Maths isnt my strong point I usually leave that to the missus. Ok well i'll forge ahead with the abbey mortgage then.
thanksListen to what people say, but watch what people what people do!!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.4K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.5K Work, Benefits & Business
- 601.3K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards