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30yr or 25yr mortage
FTBLondon_2
Posts: 16 Forumite
Hi All,
in the process of buying a flat and should be getting some dates soon to complete but originally opted for a 30yr (2yr fixed at 5.7%) repayment mortgage however after reading some bits on the net was thinking of trying to switch it to a 25yr and know I will probably have to pay a another fee to do this!!! My situation is the property I'm buying is in need of some TLC and I was looking to make improvements stay there for the two years and then try and sell the property. I'm unsure as I only aim to stay in there for the duration of my mortgage then try to sell, rent, or even move back to my parentswould it really matter you advice would be much appreciated
Thanks
in the process of buying a flat and should be getting some dates soon to complete but originally opted for a 30yr (2yr fixed at 5.7%) repayment mortgage however after reading some bits on the net was thinking of trying to switch it to a 25yr and know I will probably have to pay a another fee to do this!!! My situation is the property I'm buying is in need of some TLC and I was looking to make improvements stay there for the two years and then try and sell the property. I'm unsure as I only aim to stay in there for the duration of my mortgage then try to sell, rent, or even move back to my parentswould it really matter you advice would be much appreciated
Thanks
0
Comments
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Find out about the lease. Who owns it ? How long will be left when you come to market the property for yourself. How much is a lease extension ?
You can always overpay on a 30 year mortgage to make it a 25 year one.
J_B.0 -
I have now in receipt of a share certifcate in the freehold, and have a letter saying all I would need to extend its cover the legal costs, so would it be worth switching to the 25yr??0
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Do not worry about the term of the mortgage if you are allowed to overpay reasonable amounts without penalty. Worry more about the present rate of interest and future rate of interest such as your lenders SVR/whatever you are left on, once the two years are up. It is all scary at first and you tend to make the worst mistakes when you are doing things for the first time.
J_B.0 -
I have now in receipt of a share certifcate in the freehold, and have a letter saying all I would need to extend its cover the legal costs, so would it be worth switching to the 25yr??
I wouldn't change it because as you said you'd have to pay another set of fees or even start the whole application again. Most mortgage lenders allow you to overpay buy 10% each year without penalty so if you have the extra £££ put it on the mortgage, if you have a tight month then you are only required to pay the agreed amount.2010 Wins:
10 x Dorito's & Dips, £2,000 Pre-Paid Visa card.0
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