What Interest Rate Should we Plan for?

property.advert

You have wasted your money both on accountants and on the tax you have paid on the salary / dividends you have declared which you could otherwise have expensed away. That money could have given you a much larger deposit.

Still, you are where you are so you have to make the best of it.

You need to look at the train lines, not the tube lines. Get near enough one of those and you can usually get into the transport system. It is a compromise but it is the only option you have as you cannot magic up another £50,000 from thin air !

wymondham

I take my hat off to you - well done for thinking about this realistically - very refreshing!
It's a personal choice, but plan for +5%, possibly more - people can usally call on emergency means if need be..
Good Luck - All the best!

Thrugelmir

property.advert wrote: »

You have wasted your money both on accountants and on the tax you have paid on the salary / dividends you have declared which you could otherwise have expensed away. That money could have given you a much larger deposit.

And a far smaller mortgage.

Together with a large tax bill when the accounts come under HMRC scruntiny. Cheaper to pay tax than pay penalties for trying to avoid it.

MarieAAP

I have been looking at this myself, and I did this:

Mortgage Required (25yr) 70,000 80,000 90,000 100,000 These are only estimates, and does not include any fees, solictors, EAs etcRepayment Sums 4% 369 422 475528Repayment Sums 6% 451 515 580644Repayment Sums 8% 540 617 600667Agreement would need to be set up for 1/3 per party agreement.Repayment Sums 10% 636 726 817908Repayment Sums 12% 736 842 9471053 70,000 80,000 90,000 100,000 Interest Only 4% 233 267 300333Interest Only 6% 350 400 450500Interest Only 8% 467 533 695772Interest Only 10% 583 666 750833Interest Only 12% 700 800 9001000http://www.fool.co.uk/mortgages/mortgage-calculator/borrow-calculator.aspx

Perhaps you can do the same?

We plan on a replayment, but if things go eek, an interest only can also be changed to.

Gd Luck
M

Blah it doesn't show it as a table.

Mortgage Required (25yr) 70,000 80,000 90,000 100,000
Repayment Sums 4% 369 422 475 528
Repayment Sums 6% 451 515 580 644
Repayment Sums 8% 540 617 600 667
Repayment Sums 10% 636 726 817 908
Repayment Sums 12% 736 842 947 1053

70,000 80,000 90,000 100,000
Interest Only 4% 233 267 300 333
Interest Only 6% 350 400 450 500
Interest Only 8% 467 533 695 772
Interest Only 10% 583 666 750 833
Interest Only 12% 700 800 900 1000

MarieAAP

Not the best view, but you get the idea.

ILW

Think £100 repayment per month for each £10,000 borrowed.

originalmiscellany

Did matt99b ever tell us how this turned out?

G_M

originalmiscellany wrote: »

Did matt99b ever tell us how this turned out?

Yes. It's here.

originalmiscellany

appreciate your speedy response