£150K House Purchase - Advice

jordan_gibson

Hi,

I have just had an offer accepted on my new house.

I am fortunate enough to be putting down around £115K in cash and will then need to mortgage the remaining 35K.

Now being a typical tight Yorkshireman I hate owing people money and especially hate paying interest on mortgage's - as everyone does!! I am trying to look at different avenues to finance the 35K. On a mortgage I would rather take this over a very short time period (5 years) and get it paid off fast but will there be penalties for this? Or, am I better going to a high street lender and borrowing 35K over 5 years??

Any advice or possibilities I had not thought of would be much appreciated.

pollyanna24

I'm not an expert by any means, and am so far away from paying off me mortgage, it's unreal, but surely a normal loan is gona be higher interest than a mortgage loan?

Can you get a mortgage for say 10 years (I think there are some companies that will only let you have a minimum term of this), but make sure it's one that doesn't penalise you if you overpay, and then still pay it off in 5 years?

toonfish

a mortgage will undoubtably be the cheapest way to borrow the money, just find a lender with no redemption penalties and pay it aff as soon as you are able.

pollyanna24

Wow! I gave pretty much the same advice as a mortgage adviser. I think I should change jobs!:rotfl:

toonfish

pollyanna24 wrote:

Wow! I gave pretty much the same advice as a mortgage adviser. I think I should change jobs!:rotfl:

don't bother - the hours are long and the money is awful!

jordan_gibson

Cool - thanks everyone!

Does anyone know off the top of their head a lender that does good deals in 10 yr mortgages and that don't generally have overpayment or redemption penalties?

toonfish

jordan_gibson wrote:

Cool - thanks everyone!

Does anyone know off the top of their head a lender that does good deals in 10 yr mortgages and that don't generally have overpayment or redemption penalties?

you'll not find a 10 year fix with no penalties as far as I know.

Shimrod

I've just put some figures in at http://mortgages.charcolonline.co.uk/default.aspx for a 5 year mortgage and it gave nearly 50 possible choices. The cheapest was Newcastle building society, which was around £6770 in interest and fees on top of paying back the £35,000. Payments were around £670 per month.

None of the mortgages had any redemption fees or compulsory tie-ins. If your target is not going to be any shorter than 5 years to pay it off, you could probably get a better deal with a discount with a 2yr tie-in.

I've obviously made some of the income & outgoing figures up when putting the details in, so try Charcol or one of the other online brokers to get a feel for the offers that would be available to you.

Shim

jordan_gibson

Cheers Shim - many thanks!