CBS Mortgage

vertigohere

Hello,
hopefully have posted this question in the right forum so please forgive me if not. I have a question about negotiating a new mortgage for when we intend to move within the next six months.

We currently live in a property that has been valued at £310,000 and our existing mortgage is around £100,000 remaining on standard variable rate (2% above base rate) at 2.5% with 18 years left ( it defaulted to this after our fixed rate finished). Our monthly repayments are fairly low at £570.
We basically want to borrow an extra £100,000 to enable us to look at properties around the £400k mark.

I have spoken to the building society and they have confirmed that the mortgage is portable on to a newly purchased property.

The question I have is if it is a good idea to go for a fixed rate deal or a tracker? I intend for the 2nd part of the mortgage to be repaid over 25 years.

Or is it possible to get a 2nd part on interest only for a period of time?

The company is Cambridge Building Society

It's a big jump for us so I won't to be sure we can afford the repayments.

Thanks for reading this.

Thrugelmir

You'll more than like have to provide details of a repayment vehicle if you opt for an interest only mortgage.

If the repayments may be an issue at the moment. You need to consider whether you will be able to afford the mortgage if and when interest rates rise.

vertigohere

Thrugelmir wrote: »

You'll more than like have to provide details of a repayment vehicle if you opt for an interest only mortgage.

If the repayments may be an issue at the moment. You need to consider whether you will be able to afford the mortgage if and when interest rates rise.

That's a really good point, and then I guess we need to factor in if we can afford increased repayments on both parts of the mortgage and also if we can afford the application fees if we decide to repay/change our package.

Thanks for that.