mortgage confusion, help!

ashley10_2

Hi,

I am a first time buyer and am trying to find a mortgage suitable mortgage.

My deposit can be anything up to 60%, but i would prefer to keep 10-15% back for a rainy day.

I am split between either a 2 year fix, term base rate tracker and 5 year fix.

My intentions will be to overpay every month so this would need to be a consideration but i do not envisage it would be above the 10% that is allowed.

- The 2 year (3.09-3.5%) fix is very near the current base rate tracker but my worry is that should interst rates start to rise rapidly the decent fixes vanish.
Or would my deposit/equity size put in a good position to still get a good fix??

-The term tracker seems good and as long as i am with a lender that is consitently competitive it should be easy to transfer to a fix without incuring a set up fee as its the same lender right?
Would YBS, Setander and HSBC come under 'regularly competitive lenders'?

- 3 and 4 year fixes seem quite alot higher so i feel it would make sense to just go for a 5 year fix if i am looking longer term.

Does my thinking on these sound correct and does anyone have any good suggestions i may have missed?

dimbo61

I have read your post and now I am confused !
What do you want ?
How long do you plan on staying in the property IF you have found a property?
I am with YBS and think its a good lender But rates are expensive compared to First Direct at the moment.
No point taking a 5 year fix if you plan on moving in 2/3 years
Say you take a tracker at 1.99/2.49% over base and the BOE base rate goes back to pre october 2008 level ie 5.5%( jump ship and pay £999 for a fix!)
I have an offset mortgage and therefore unlimited overpayments if I want,
I have also fixed for a long time 5 years ( that me it might not be your choice)