Mortgage after 5 year fix

tedglen3

Hello, I was thinking about getting the following mortgage:

£70000 House
£15000 Deposit
Mortgage for 55,000

5 years fixed rate 6.19% Natwest. £320 per month

What I am confused about is what happens after 5 years? Do I pay interest on how much is left on my mortgage or do I pay interest on the actual start amount of £55000

After five years how much will actually be left on mortgage approx?

CloudCuckooLand

Is it a Repayment mortgage ? use an amortisation calculator - plenty found via google.

Or is it an Interest Only mortgage ? You will still owe the £55k.

tedglen3

ok. so after five years i will owe £52415.48. at this stage is it normal to move to a diffrent morgage company / deal?

CloudCuckooLand

Depends on the variable rate that you follow on to, whether you have equity in the property to be able to find a deal, what other deals are out there, what fees are involved and whether you are happy to pay them, what interest rates are doing, etc.

Short version. It depends.

Is over 6% the best deal you have found for 80% LTV? Not looked recently. Seems a touch high.

tedglen3

no its not the best deal, its about the average. thanks a lot for your help

dimbo61

What term are you looking at 30 years works out at 336.50 a month ?
please dont tell me you are consdering a 35 year term and after 5 years you will have paid off only £2600 off the balance!
Yorkshire Building society have a 5 year fix at 5.49% fee £995 and if you took that over 25 years it would cost £337 a month ( only £17 more each month ) but after 5 years you would have paid off £6000.
If you cant afford a 25 year term theen dont buy the property

originalmiscellany

The alternative is that you save like a monster for the next few years, and once the 5 years are up, you can pay a decent chunk of capital off.
As dimbo hints at, you can get better deals I think than you may be looking at.