First time buyer: cheapest ~85% mortgage?

craigj

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kinglewis

1. The int rates change after a defined period.. 1,2,3,5 years etc.. at which point the rate will move to the lenders 'standard cariable rate'.. which is basically a rate which they can more or less choose to charge you..but does follow the bank of england base rate to a degree.

2. http://www.fsa.gov.uk/tables/bespoke/Mortgages Check this site for another possible quote. What rate you choose will depend on whether you want fixed or tracker?? That is possibly the most difficult choice because if you choose a 5 yr tracker and rates go up significantly... you are tied into a 5 year deal and cannot (without penalty) switch to a fixed rate. Can you afford for the payments to rise considerably?

3. Not sure on this one you would need to work it out.. I would assume they would take this into account.

4. After 5 years it is 'in theory' very easy to switch to another mortgage / lender. Various problems can arise though such as your property falling in value.. banks may increase arrangement fees so that it is not worth you while changing the mortgage. To summarise it is easy usually to choose another mortgage after 5 yrs.. however for now you must concentrate on getting the right mortgage now... and see what happens when your mortgage term ends.

Hope that helps

newbi

Try the Abbey - Fixed rate for i think 3 years @5.79%

craigj

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