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What mortgage?
Options
Dodgysailor
Posts: 181 Forumite
Hi,
We need to take a final decision with the mortgage of our new house.
To cut it short we have shortlisted two options:
1- 1.99% + X for two years fixed
2 - 2.39% + X for the whole duration of the mortgage.
X= (bank of England Interest rate, currently at 0.5%)
If we take option 1 we will need to shop around after two years which can be a bit tricky. In the other hand we will have to pay less for the first two years which is always good when you buy a new house.
Is it worth the risk?
We need to take a final decision with the mortgage of our new house.
To cut it short we have shortlisted two options:
1- 1.99% + X for two years fixed
2 - 2.39% + X for the whole duration of the mortgage.
X= (bank of England Interest rate, currently at 0.5%)
If we take option 1 we will need to shop around after two years which can be a bit tricky. In the other hand we will have to pay less for the first two years which is always good when you buy a new house.
Is it worth the risk?
0
Comments
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In your option 1, it is either Base + 1.99% or it is fixed. It can't be both.I am an Independent Financial AdviserYou should note that this site doesn't check my status as an Independent Financial Adviser, so you need to take my word for it. This signature is here as I follow MSE's Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Also what fees are being charged in either case or are the fees the same ?Space available for rent0
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Sounds as if HSBC in some guise is the chossen lender.0
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Sorry for the delay in responding.
Yes in option 1 is the 1.99% what is fixed not x.
And the fees are similar.0
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