Mortgage options...

czechmate_2

I wish to buy a small house for £268 i have equity of £146 from the sale of my flat, plus about £25k cash available. So I need to borrow £100k or thereabouts.

I am self employed earning about £20K (no accounts) this year my partner is a teacher on £32k because of the fuss required for S/E I am inclined to stick with my lender Natwest for my mortgage. They have given me two options:

1.) 20 year mortgage fixed rate (2 years) 5.19% interest, repayments £680 per month. £999(!) set up charge.

2.) 20 year mortgage Offset 6.2% interest, repayments £740 per month. set up charge £345. I have some savings to go in the offset account from the start- £5000 (I can't add to the purchase capital as these ammount to my only retirement saving.)

JoeK_3

Option 1 - 6.20% - 5.19% = 1.01%

£100,000 x 1.01% = £1,010 cheaper

Option 2 - £5,000 x 6.20% = £310

The winner is Option 1

JoeK

herbiesjp

If you are both going on the mortgage for the new place, and due to the size of the deposit, I think you could get the mortgage agreed just on the basis of your partner's income alone (assuming no other debts)

That way you would have the whole market place to choose from and to look at other options i.e. lower arrangement fees if you want them

HTH

MortgageMamma

Self employed mortgages are not as difficult as you think if you approach the right lender, and in any event your partners income alone would cover a £100k mortgage assuming she is not heavily in debt. Its a shame you feel the need to stick with natwest when there could be lots of better deals available.

MM