help needed to find mortgage

chrismoll

I am trying to find a mortgage that will give me £70000 for under £600 a month over 13 years.

The house value is £170,000.

I've been looking at doing fixed rate for the first two years?

Any help or advice greatly appreciated.

Thanks in advance

Lazy_Runner

No advice as such, but I suspect you are being optimistic given current interest rates especially fixed rates.

Using this calculator on the Guardian website:
Guardian Mortgage Calculator
you would need an interest rate of 4.65% to meet your needs.

One way to make your mortgage cheaper is go interest only and then start saving/making more money to invest so that at the end of 13 years you have sufficient funds to pay off the mortgage.

So say you get an interest only mortgage at 6.5%, this would lead to payments of £380.

With the remaining £220, you could invest for the £70k.

Again using a calculator on the Guardian site: Periodic investment calculator

If you find an investment returning between 10% and 14% a year, you should be able to repay the mortgate. (I put in that there was no seed money, and the monthly investment would be £220). For a 10% growth a year, this gives £45k after 10 years and £91k after 15 years).

You need to talk to a mortgage adviser and/or an IFA.

chrismoll

a great help and i shall have a look into it.

Thanks

kennyboy66_2

Lazy_Runner wrote: »

One way to make your mortgage cheaper is go interest only and then start saving/making more money to invest so that at the end of 13 years you have sufficient funds to pay off the mortgage.

So say you get an interest only mortgage at 6.5%, this would lead to payments of £380.

With the remaining £220, you could invest for the £70k.

Again using a calculator on the Guardian site: Periodic investment calculator

If you find an investment returning between 10% and 14% a year, you should be able to repay the mortgate. (I put in that there was no seed money, and the monthly investment would be £220). For a 10% growth a year, this gives £45k after 10 years and £91k after 15 years).

You need to talk to a mortgage adviser and/or an IFA.

An investment return of 10% - 14% is ridiculously high, even before taking account of charges, dealing costs and taxation.

You may be better stretching the mortgage term or putting up with higher payments.