New to mortgage and few mortgage ideas,Help needed

alirob12

HI Guys,

I am just about to purchase my first house and therefore I am going to have to take the mortgage out…

I am a FTB and a big money saver therefore I am not 2 keen on all the interest that I will have to pay with my mortgage. So I have come up with a plan…

First of all im on 18,5k/yr and the place I would like is a shared ownership 2 bed flat for just under 64k (50% share). I can put down 5k plus 1k for all the fees. So I will need to borrow about 59k.
And my plan therefore is: get a mortgage for 40k and borrow the rest on 0% Credit cards. I apparently have a very good score (Lloyds who I bank with gave me 13k CC limit previously – paid off and closed ab 1yr ago, I currently have 6.5k Ryan Air CC, and 4,5 Barclaycard – both at £0)
So hopefully I will be able to borrow 19k on 12months 0%, and with the use of MBNA – I can transfer it to my current acc… I know it will mean in 12 months I will have to get new CCs, but it worked well for me until now so hopefully it should be ok? Especially as I plan to pay off about £170 (possibly more) so will need only 17k credit limit after 12months…

And as I said I would like to take a mortgage for about 40k. and would like to pay it off within 10yrs which means about £500.. and I am quite happy with it.
Can any of you guys out here let me know what sort of rates should I expect? I have been told about 6.5% with HSBC on a 3yr fixed, but it sounds a bit dear? As I think Lloyds offered me about 5.65% but a couple of months ago. And what sort of mortgage would be best for me? can you guys advise? I would like to overpay when I have some spare cash, and I may need to remortgage to buy additional shares after 1-3 years?

Thank you for any comments as I just want to get the whole thing right and get a gd deal rather than just get ripped off so I count on you guys… If any of you is from Worcester – I would happily come to see you for advice… Thanks in advance!!
:beer: