Unsure on mortgages

smckay

Hi I am currently trying to get my first mortgage and am having trouble getting my head round everything.

The naive part of my sticks all my information in and picks the mortgage with the lowest amount to repay over the period e.g. 2years.

now how can I find out what penalties each mortgage carries?

I have already decided as a FTB I want to go fixed so I can budget and know how much I will need to pay for 2/3years.

But after those 2/3 years am I free to move my mortgage? What are the catches etc? As all the returns so an amount 4.89% till 2009 and then rest of term 6.7%.

surely you cant just leave and get a new mortgage every 3 years at around 5%?

help!

:T

giger

Hi

I'm quite new to this place but your question might be better placed in the general mortgage thread rather than this one as I think it's primary aim is for ppl looking to clear their mortgages.

As a very quick guide, each mortgage product for every mortgage lender will be different. They will all have different interest rates, tie-in periods, penalties and set up fees. You have to look at each one individually to see what the terms are.

Generally mortgages with no tie-ins have a slightly higher interest rate than those that carry some sort of penalty (as they know you could leave at any time so want to make more whilst you are with them). As an example, one may have a discounted rate for 2 years, at which point you drop into their standard variable rate. Switching the mortgage (effectively paying back the sum borrowed to the lender) within 2 years may carry a penalty of 4% which you have to pay the lender, whereas if you waited the full 2 years you could move provider with no penalty.

Sounds like you need a 2/3 year fixed mortgage wih no extended penalties. This means you are free to move after the 2/3 year period without paying a penalty

gibby

the best advice I can give you is to conatc London & country Mortgages

they do not charge a fee up front and the advice they give alwasy is in your vest interests

once they assess your situation they look for the best deal for you and are never pushy

http://www.lcplc.co.uk/ is the website and I have alwasy got excellent service from Matt Skeet - if you ask for him they will put you through to him

its one of the best things I have learnt from this site

G

kenshaz

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