Mortgage Query FTB

engineer21

Hi all, Most likely another silly question but as a FTB no one tells you this stuff lol!

iam trying to buy a house for 153K with a 10% deposit now my question is that while i could stretch to 15% that wont leave me anything for furnishings, unforseen stuff. but during the summer i will have a 2nd job and will earn extra.

what iam wondering is will there be much differnce in overall cost if i just Overpay for first year? so that extra 5% i will overpay within 1 yr.

also if iam overpaying for my first two yrs (2 yrs fixed rate) then at end of 2 yrs can i reduce monthy payments? i.e get better rates etc?

cheers i will be asking my mortgage broker this anyway but since im offshore just now this crap is all im thinking about lol!!

Matt

WellKnownSid

Over paying will reduce your mortgage capital owed and depending how it's applied will reduce term or monthly repayments.

The rate will be unchanged - you would have to remortgage and incur fees and possibly penalties, plus if your house has dropped in value (or not - remortgage valuations can be aggressive) you may not have the loan to value you think you have.

Suggest you put everything into the deposit and find your furnishings on freecycle or eBay. The Neff integrated kitchen and designer sofa can wait!

theoretica

If you have a 15% deposit you might get a better rate on your whole mortgage than if you only have 10%. In this case, yes it would cost you more to go for the 90% deposit and then overpay.

Have you thought of camping out in the house until the 2nd job lets you buy things? Do you think you might get a 0% on purchases credit card if you are sure the 2nd job would let you pay it off on time?

Jojo1daffy

When I bought my first house I had no furniture. My mum bought me a bed and my boyfriend's Gran gave us a sofa that you could only sit on in a certain way otherwise you fell through it. Chucked a nice throw on that. Crockery etc I got from a pound shop (50p shop back then!) and I got a table and mismatched chairs from a second hand shop and had a lovely time in the garden stripping them down and repainting them.