What would you do? Short term mortgage.

nb_berenice

Hi,

I currently own my house outright so no mortgage worries. For my sins (and pension) I'm planning to move up in the market.

The property I am buying is around £490k and with the sale of my existing house and some other capital my deposit would be around £410k - therefore looking to borrow approx £80k over 20 years.

The spanner in the works is I'll be shortly selling another property that should give me a return of around £60k. This probably won't be for 6 - 12 months though.

So I'm in a position where I need to borrow £80k in the longer term but I'll be paying off a huge chunk within a year, leaving me just £20k to pay off over the remaining 19/20 years.

What would anyone do in terms of mortgage type, etc. What should I look out for and any pitfalls besides overpayment penalties? Trackers with no overpayment charges looks the best so far, but interest rates are higher. Is a mortgage even the best way to go to finance this 'project'.

All views and advice much appreciated.

G.

getmore4less

Have you looked at offset mortgages they are a good candidate for this type of senario.

What rate trackers have you looked at? they tend to be good rates the offset optoin only adds a small premium.