Confused First timer

maharaja_2

hello all,

this is my first entry to the chat forum.

I am seriously into buying a house for the last 2 months and finally put in an offer on a house for 215000.

in the meantime i have been do a lot of unsupervised, directionless search for the perfect mortgage. will it be fixed/discounted/variable........? i do not know.:rolleyes:

i am employed.
i make around 3k pm.
no bad credit history.
can put in about 1500 pm into mortgage.
got a saving of around 25000.

can all of you look into my situation and advice me which type of mortgage i should go for?

is offset a good choice for me as i am into a lot of saving?
or fixed is better to start with?

Joe_Bloggs

Check out this FSA site for useful background information on types of interest rates and mortgages.
J_B.

Destined_to_be_skint

Hi Maharaja,

Is the £25K going to be your deposit? If so, you won't have any savings to offset!

Personally I would go for a long term fix (that's what I did earlier this year), as I wanted peace of mind and was pretty sure that interest rates would be going up. I believe they will rise again before the year is out. However, I am not a financial advisor, so you have to choose what is best for you.

millsmum

there is no such thing as the perfect mortgage, its all down to what you like. do you want stability, the same payment if interest rates go up and down? do you want to pay your mortgage off early? do you want to use your savings?

most people just want to pay as little as possible for as much as they can get!

I personally prefer to have control over my mortgage. I have an offset which i am just offseting my oh savings, which should reduce our term by neraly 8 years, I am then going to try an over pay £100 a month to help get rid asap

if the intrest rate goes down, I over pay more, if it goes up it only goes up by a few quid.

mookybargirl

I've just used a mortgage broker/advisor ( for free and looked at the whole of the market). He explained everything thoroughly and gave advice but ultimately, we picked the mortgage that was right for us.

Might be worth while contacting a broker for advice.