Mortgage type

pevonia

Could anyone advise which mortgage type to go for in these times.

Thankyou

ACG

Impossible to say with no information and the only people qualified to give you a professional answer on here arnt allowed without conducting a factfind first.

The 2 main types are:
Fixed rate (which means the rate is fixed for x number of years - depending on the term you choose usually between 2 and 5). These are good as they allow you to budget, however if interest rates stay low then they may not be financially the best option.
Tracker rates - these track either the bank of england base rate or the lenders standard variable rate. These are usually a lower interest rate but can go up or down so there isnt the guarantees you would usually get with a fixed rate.

There are others, if that doesnt help then it might be worth meeting up with a mortgage advisor who can not only help you decide on the type of mortgage but also the product, term, amount you can borrow among other things.

holly_hobby

If you mean interest only or repayment - then repayment is fast becoming the only option available fo new business.

If you mean the product type, then ACG has given you a brief overview - the suitability of which will be largely determined by your disposable budget and attitude to absorbing increases to mge payments if future rates rise (relevant to tracker or discount products).

Hope this helps

Holly

pevonia

Is this deal with the co-op orth looking at.

ACG

They have about 20 deals.

You havnt provided any information about you, the deal your looking at, what you want/need etc etc etc.

Cornucopia

The issues with mortgages at the moment are these:-

- For trackers, the margin above base rate is historically very high. Whilst this gives a reasonable 3.5% rate now, if/when the base rate returns to more typical levels, you could find yourself on 7 or 8%.

- For any loans on SVR or return to SVR, some SVRs are very high (up to 4.5% over base rate).

- If I were a new FTBer, the most tempting deals for me would be long-term fixes (5 years+), as long as the rate is affordable now (and not too great a premium over what is available elsewhere), the penalties are not too severe and there are over-payments options. The Yorkshire BS 5 year fix and Co-Op 10 year fix are superficially attractive, but I have not looked at the ts & cs.

- Only Repayment mortgages are generally available.

ACG

The prolem with long term fixes - especially for ftb's is that you are tied in for that period.

If/when it comes to moving house, what happens if the lender wont lend the extra money needed for the new purchase or they wont lend on the new property - you then have early repayment charges which can amount to thousands.

One of the questions i have to ask is how long they intend to live in the property for - if its 2 years and i get them a 10 year fix i have to have a very good reason for recommending a 10 year fixed rate.