FTB advice - another thread

WeaponX

I'm single and have no dependents, I'm a FTB with a good deposit and an excellent credit rating. I'm looking to buy a property and take out a mortgage of £200k and was thinking of going with a BOE tracker as I get the cheapest rate out there. It's also good as I can switch to a different product say fixed if the interest rate rises.

I just wondering if this is sound logic I'm following?

Lokolo

You want a mortgage of £200k? You will need to be on a big salary for that sort of mortgage....

powerwin

WeaponX wrote: »

I'm single and have no dependents, I'm a FTB with a good deposit and an excellent credit rating. I'm looking to buy a property and take out a mortgage of £200k and was thinking of going with a BOE tracker as I get the cheapest rate out there. It's also good as I can switch to a different product say fixed if the interest rate rises.

I just wondering if this is sound logic I'm following?

Fairly sound. In my view, interest rates are likely to stay fairly low for a while, as if they put them up, it would cause mass mortgage default. If you go for a tracker, you just need to make sure you run through some worst case scenarios and check that your finances will be able to cope with them. You need to model some nasty interest rate rises, and work out whether you could deal with it.

Rgds