Mortgage Advice For A Newbie

dwsjarcmcd

Obviously I don't know anything about the OP's financial circumstances, however, a £20k income to service a £62k loan does not give much room for rates to increase. Similarly a 2 year fixed rate could mean you are looking at a significant increase in rate at the end (accepting that it may not).

Personally I would look at a longer fixed rate, say 5 years which may allow your salary to rise and give you a longer period of stability, even if you need to pay a bit more to start with.

shaz77_2

dwsjarcmcd wrote: »

Obviously I don't know anything about the OP's financial circumstances, however, a £20k income to service a £62k loan does not give much room for rates to increase. Similarly a 2 year fixed rate could mean you are looking at a significant increase in rate at the end (accepting that it may not).

Personally I would look at a longer fixed rate, say 5 years which may allow your salary to rise and give you a longer period of stability, even if you need to pay a bit more to start with.

Thanks that is a very good point, however I don't see any decent fixed rate for 5 years at the moment and I like having the option to overpay each month.

jizba

dwsjarcmcd wrote: »

Obviously I don't know anything about the OP's financial circumstances, however, a £20k income to service a £62k loan does not give much room for rates to increase. Similarly a 2 year fixed rate could mean you are looking at a significant increase in rate at the end (accepting that it may not).

Personally I would look at a longer fixed rate, say 5 years which may allow your salary to rise and give you a longer period of stability, even if you need to pay a bit more to start with.

Out of interest are interest rates set to rocket over the next number of years? Secondly are there any decent fixed rate 5 year mortgages currently available below 4.5% for a 60K mortgage?