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Ftb help on mortgages PLEASE
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chef1223
Posts: 3 Newbie
Hi we are FTB's, looking for a property at £160,000 value with a £40,000 deposit.
So would be borrowing £120,000.
I'm thinking for the security trying to fix at a competitive deal for 5 years and pay still pay less than our present rent so I know it is more than manageable, and at least the money isn't going to a LL it's going into our house.
However I realise we would be paying an extra percent or so on a 5 year fix so it would cost £1000 each year over something like a 2/3 year fix. But it would give us 5 years to save a good amount of money for any hikes in interest along with security and that money could be used to pay off some motgage each year or after initial 5 year term.
Bearing in mind we would have to pay to renegotiate our mortgage again sooner when the 2 year fix was up so thats a cost to factor in, so i don't think there is that much in it.
If the interest stays low then yes we would of payed far more in interest than if we did a tracker, but if we can afford the fix should we do it.
Are trackers too dangerous at the moment???
Thanks for any help!
chef1223
So would be borrowing £120,000.
I'm thinking for the security trying to fix at a competitive deal for 5 years and pay still pay less than our present rent so I know it is more than manageable, and at least the money isn't going to a LL it's going into our house.
However I realise we would be paying an extra percent or so on a 5 year fix so it would cost £1000 each year over something like a 2/3 year fix. But it would give us 5 years to save a good amount of money for any hikes in interest along with security and that money could be used to pay off some motgage each year or after initial 5 year term.
Bearing in mind we would have to pay to renegotiate our mortgage again sooner when the 2 year fix was up so thats a cost to factor in, so i don't think there is that much in it.
If the interest stays low then yes we would of payed far more in interest than if we did a tracker, but if we can afford the fix should we do it.
Are trackers too dangerous at the moment???
Thanks for any help!
chef1223
0
Comments
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Well with a £40K deposit on a £160K property you should get some good deals as LTV is 75%.
You have aready mentioned that you are FTB,s so you have to consider how long you will want to stay in the property ( one bed flat no good if you plan on kids!)
Is your relationship safe ? Job safe ? Can you afford the mortgage payments ?
I am 4 1/2 years into a 5 year fix and happy with by decision but I took out an offset mortgage so can build up emergency funds in the offset account so its quite flexable.
I needed the security of knowing long term how much the mortgage would be
I am with YBS GOOD LUCK in your new home0
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