Mortgage advice

chris180682

Thrugelmir wrote: »

There maybe you need to consider how much you borrow. Pay down some more of your existing mortgage first. While watching how events unfold.

I think our other options would have to be renting for a while or looking at cheaper properties as we have acceoted an offer on our house and thats taken about 18 months so just want to get it sold now.

chris180682

Wh05apk wrote: »

I think if that is the case, then maybe you should consider a longer term fixed rate, it will cost you more now, but there would not be the risk that in 2 years time you could struggle and lose your house!

Yes i have considered this but not sure we could stretch to the 3 year fixed and certainly not the 5 year and if we did go with three year fixed then is an extra year going to make much difference to our dilemma?

chris180682

Just foud an even better rate of 5.15 fixed for two years but they dont do any longer than that at 90% LTV. If say we took this out woukd we be having to look for the exact same type of mortgage after the two years as we would obviously still need 90% LTV or are there different products available when you are just switching from one provider to another?

getmore4less

At 90% LTV you need to be looking at followon rates as well as the upfront costs.

You may not be able to change lender or get a deal at the end of the fix.

chris180682

getmore4less wrote: »

At 90% LTV you need to be looking at followon rates as well as the upfront costs.

You may not be able to change lender or get a deal at the end of the fix.

Ths is my original concern, whether the mortgage rates will be higher after the 2 years but obviously theres no real way of knowing this so we have a decision to make. Im thinking it'll either be renting or a cheaper house unfortunately.

Wh05apk

At 90% the lenders SVR will probably look quite atrractive in 2 years time!

chris180682

Wh05apk wrote: »

At 90% the lenders SVR will probably look quite atrractive in 2 years time!

Attractive to me you mean? This would by my hope and then get into another fixed term but the noghtmare scenario would be if i cant get another 90% mort
gage at the same rate or lower or the SVR i would be going on to may be higher than the fixed id have been on. I think their current SVR is about 4.24 and the fixed is 5.25 but the other fixed rate ive seen is 5.15 but SVR is 5.99!?

chris180682

Plus when reafing the different financial sites and articles there seems to be a big difference in opinion on whether rates will significantly rise or go down based on the upcoming base rate rises as and when they happen.

chris180682

It's possible we may be able to get a further 5% deposit from my parents. If this is the case I was thinking getting tied into a longer fixed rate than the two years previously mentioned or take the two year fixed with 10% deposit and just take the extra 5% when the fixed ends IF the rates have gone up. If we did this its possible we wouldn't have to take the money which we would rather not do unless essential, so it would act as a bit of insurance against possible rate rises and if rates are the same or better in two years then we wont need the extra money and all is well! Would appreciate any thoughts\suggestions on this, thanks.

chris180682

Any thoughts on my last post? Do you think this would put us in a much stronger position?