Mortgage options when deposit is 2/3rds of the property value

needahol

Hi

As per the thread title, I want to buy a property and will only need to borrow 1/3rd of the property value (putting down £100k on a £150k house). I am clueless about mortgages and used a broker every other time I've bought but thought I'd try to fathom it out without one this time

I've done a quick search and, as I also have a loan (which ends in 2 years), I thought I'd go for a mortgage that offers a discount for the first 2 years, therefore meaning I can pay the loan alongside. The thing I don't understand (and you'll have to excuse the level of stupidy here) is, what happens at the end of the 2 years? Is it simply a case of the rate going up to whatever the interest rate figure is then or will it go above (thus recouping some of the discount)

Also, lots of 'trackers' have discounted rates for a certain period, Are trackers just discounted mortgages by another name or am I missing something.

I told you I was clueless but if anyone can explain in simple terms, I'd appreciate it :beer:

VIGILANT22

This should be useful

http://www.moneysavingexpert.com/mortgages/mortgage-guide

northerner999

After the discount/fixed period ends you will move onto your lender's standard variable rate (SVR), at the moment SVRs are reasonable but no one really knows where interest rates will be in 24 months.