Mortgage help please?

ellenlh

Hiya I am thinking about getting a house worth £85000. I have a deposit of £8500. I am getting confused about the monthly repayments because of the interest. What is the average amount of interest you pay back? Or do you choose the amount of interest you pay back? Could someone help please?

SAK45

It all depends the rate of interest that is being offered to you by the lender. Have you got an offer from a lender?

dimbo61

Hi just to give you a quick idea !!!!
10% deposit on £85,000 proerty = £8500 so £76500 mortgage
Now just looked on YBS website only because its on my favourites! and 90% LTV 3 year fix is 5.79% with a fee of £995 which you pay upfront along with all other costs!
So that gives a repayment mortgage figure of £483.13 per month for next 3 years
After 3 years you will still owe £72,030 only rough idea

SAK45

Ok but to be perfectly frank that's a high interest rate, considering the current base rate. The lenders are asking for more deposits, when in the past 10% would suffice. I would still shop around if i were in your position, the arrangement fee to me looks high too. Without looking around I think that should be about 50% less and i think you should be able to get an interest rate of less than 5%.

Hopefully someone with expertise in this field will come along with more accurate details. Over the last 10 years i have purchased properties and re-mortgaged several times. Only earlier this year we decided to sell our home and were given an offer from Halifax 2.9% but our deposit was very large, in the new property we would be putting in something like 75%.

kingstreet

The Yorkshire deal's not bad for 90%.

For the amount required, I'd concentrate on the lowest/no setting-up costs as these are more important than the rate for small mortgages, especially for a short-term deal.

It gets a bit more balanced if you look at 5 years or more.

Barnsley BS is doing 5.49% fixed for 2 years with no arrangement fee and you can get a three year fix at 6.55% with Post Office with no arrangement fee, no valuation fee and a £300 cashback.

I've also got a two year 90% Yorkshire deal (7430) which says 5.79%, free valuation, free legals, no arrangement fee and £500 cashback. I don't know if it's still available, but it's on my sourcing system from yesterday's update.