Co-op five year fix/ First Direct tracker

maggiemayhem

Dimbo - What you are doing makes a lot of sense. 5 years was the term I wanted. In my particular case I do not think that I will have enough to offset over this time to make it worth having an offset facility. With the co-op 5 year fix I think you may be able to do overpayments/underpayments (if you have made overpayments) (I need to check out), and that would give me some sort of flexibility.

dimbo61

Coop allow 10% overpayment but you cant finish the mortgage until the 5 year term has ended.
Most lenders have at least a 5 year term.
Cost of £81,000 over 5 years at 3.99% is £1491.37 a month !

maggiemayhem

Thanks for the reply -

Basically I was hoping to take the interest only option (set £270 a month) (co-op I think still allows interest only) and make as close to the 10% overpayments each year as I can afford (co-op appears to be flexible in the way this is done) and then at the end of the 5 year period I hope to clear a large chunk of it with an endowment policy that will have just matured. This way even if I still have some mortgage left it will be minimal. Thats the plan - but if my circumstances should change - the set payment is only £270 and the co-op appears to be flexible with the payments as long as overpayments have been made.