New mortgage help please

popp123

I would like to take out a mortgage for £200,000 against a £650,000 house. Would it be best to go for a 5 year fixed rate mortgage in case interest rates go through the roof? I am looking for one obviously at a low rate but also with no early repayment charges as I am expecting an inheritance within the 5 years to pay it off in full. What can you recommend? Thanks

opinions4u

popp123 wrote: »

I would like to take out a mortgage for £200,000 against a £650,000 house. Would it be best to go for a 5 year fixed rate mortgage in case interest rates go through the roof?

If you have a fear of interest rates rising, then this would be one option to consider. But there are a range of inidvidual circumstance to consider before saying that this is the right course of action. I'd see a whole of market mortgage adviser if you want more help with that answer.

I am looking for one obviously at a low rate but also with no early repayment charges

Most fixed rates will have an ERC. Simply because everybody would remortgage every time a new cheaper fixed rate came to the market!

as I am expecting an inheritance within the 5 years to pay it off in full.

Wow, if I was the will writing relative I'd be somewhat worried!

herbiesjp

I doubt you will find the combination of 5 year fix without ERCs.

The closest you might find are fully flexible deals that allow unlimited overpayments without completely closing the mortgage account down which would not be a bad compromise

dimbo61

Consider a 5 year fixed offset !
That way if you do come into some money you can offset the £200,000 against the mortgage and be paying NO INTEREST
You still have set up fees and need to keep the mortgage going for the full 5 years.
Just an idea !