Any advice on a new mortgage

phil_744

Hello.

I have just bought a house and now thinking of a mortgage.

To start off the mortgage i would like to go for a 2 year fixed deal.

The deal i am looking at is the Portman 4.3% fixed for 2 year.

Am putting down a depoist of £65'000 and will be borrowing £140'000

This means £772.87 per month for 24 months.
£399 fixed fee
£320 Valuation fee (which has too be paid)
Total price for 2 years £19267.88

The only problem i can see hear is Portman charge interest annually rather than daily !

Please could anybody advise any better, or does the annually thing cause a lot more.

Thanks very much,

PD

tomstickland

Annual vs monthly doesn't make any difference to you - they will give you a monthly repayment figure. 4.3% is about as good as it gets for a repayment mortgage at the moment. This is the direct business only option from what I remember?

I've just gone for a 4.39% 2 year fix with Halifax via London & Country fee free brokers. It'd be worth giving them a call to see what else they might dig up to suit you.

Ian_W

Correct me if I'm wrong Tom, but the difference between annual or daily/monthly interest is relevent IF you intend or are able to overpay on a regular basis. My understanding is your overpayments aren't credited until the annual interest is reworked, erm, well annually. Yes/No?

tomstickland

Yes, it depends on how they calculate and charge the interest. So if you want to overpay it is relevant, so T&C should be studied.

Wickedkitten

I'd definitely go for interest being compounded daily rather than annually.