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First time buyer question
GMan
Posts: 14 Forumite
Im a first time buyer who is very quickly learning about mortgages, or more precisely, learning that they are ridiculously complicated!!
I've found a mortgage with the Cooperative which looks pretty competitive but Im trying to decide which angle to approach it from.
I can fix for 2 years with a 90% LTV or 3 years at 85% LTV. On the face of it the 85% option would be the obvious option. However, I started thinking that as interest rates are going to go up eventually, would it be better to fix at 2 years as this means the term would end sooner, meaning that I could potentially fix again at a rate which would be lower than if I were to have to wait 3 years? Or is that massively over thinking it?
I've found a mortgage with the Cooperative which looks pretty competitive but Im trying to decide which angle to approach it from.
I can fix for 2 years with a 90% LTV or 3 years at 85% LTV. On the face of it the 85% option would be the obvious option. However, I started thinking that as interest rates are going to go up eventually, would it be better to fix at 2 years as this means the term would end sooner, meaning that I could potentially fix again at a rate which would be lower than if I were to have to wait 3 years? Or is that massively over thinking it?
0
Comments
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Depends on when you think "eventually" might be.
What if rates rise before the 2yrs are up...the 3yr deal would give you an extra year of the "locked in" rate...
If rates continued to rise between the 2nd and 3rd year, then yes you could come off worse. Or they might not rise for 2yrs, at all.
All part of the great coin toss...
No 5yr deals about?Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
Remember to factor in re-mortgage fees which could be as high as £1000!0
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