mortgage traps

luciano

Hello everybody.

I'm preparing myself to get the first mortgage in my life. I don't like trusting "experts" on a word. I'm going to go for an adviser but I also want to understand it. I try lo learn as much as I can but there is one subject I can't learn from books. What are the traps I have to be aware before committing into a mortgage?
All deals are sold in the same way - you have the interest rate, fees and the APR. I'm sure there is plenty of a "small print" people have to be aware.

jimjames

Check out the fees and costs. Sometimes the rate may be worse for a lower (or no) fee - but if you do the sums it may be cheaper long term.

Decide if you want variable rate or fixed. Personally I always prefer variable but others like the security of fixed even though they are paying more now.

Watch out for other costs and things like early repayment or over payment penalties

luciano

Thank you for your replay JimJames. You said you prefer a variable but as far I understand it's related to the inflation which is crazy those days. Is it not more dangerous gamble then going for the fix rate (which obviously is a gamble as well)?

While we are at this subject even fix rate will become variable at the end of the fix period isn't it?

Thrugelmir

luciano wrote: »

You said you prefer a variable but as far I understand it's related to the inflation which is crazy those days. Is it not more dangerous gamble then going for the fix rate (which obviously is a gamble as well)?

Don't make the issue more complex than need be.

I would suggest seeing what is on offer first. Then chewing that over.