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New to mortgage - term advise
xxzeezeexx
Posts: 37 Forumite
Hello.
I am planning on using my Right TO Buy to buy my HA property.
My question is this - are the longer "offer" terms better?
With the Right To Buy, I cant sell my property within the first 5 years (I can really but I'd have to pay back my discount).
As I know I will not change my mortgage or move house within the first 5 years, should I go for a 5 year term or are the shorter terms (2 years etc) better?
My priorities are keeping my repayments as level as possible and as little initial costs as possible.
I am planning on using my Right TO Buy to buy my HA property.
My question is this - are the longer "offer" terms better?
With the Right To Buy, I cant sell my property within the first 5 years (I can really but I'd have to pay back my discount).
As I know I will not change my mortgage or move house within the first 5 years, should I go for a 5 year term or are the shorter terms (2 years etc) better?
My priorities are keeping my repayments as level as possible and as little initial costs as possible.
0
Comments
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It would be sensible to match your product term to the pre-emption period. Otherwise, you could be stuck on your lender's "follow-on" rate and be unable to get a new deal.
It is possible to remortgage during the pre-emption period, but it is a bit laboursome, with the council/HA having to provide a deed of postponement, to prevent the second charge being promoted to a first as the first mortgage is repaid during the remortgage process.
Without the deed of postponement, the new lender will not allow the solicitor handling the remortgage to complete.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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