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Mortgage rates - which one to go with

Phantomjoy
Posts: 41 Forumite
Hi guys
Your views are much appreciated.
I already have a mortgage (M1) of near 60 k at a fantastic rate. Monthly repayments are about 375 with 15 yrs left.
I need to borrow another 130k (M2) which will be over 25 yrs if M1 is ported. the repayments on M2 will be around 573 for a 2 yr fixed or 624 for a 5 yr fixed making the total monthly repayments for M1+M2 either 950 or 1000.
this means that 60 k will be repaid in 15 yrs and the other 130k will be over 25 yrs. however if I overpay M2 by 200 per month, both M1 & M2 will be paid at the same time.
I have seen a mortgage by Abbey for the whole 190k required over 25 yrs. repayments will be 837 for a 2 yr fixed or 900 for a 5 yr fixed.
for those of you who have the knowledge and have been through something similar, which one would you advise and why?
many thanks in advance.
Your views are much appreciated.
I already have a mortgage (M1) of near 60 k at a fantastic rate. Monthly repayments are about 375 with 15 yrs left.
I need to borrow another 130k (M2) which will be over 25 yrs if M1 is ported. the repayments on M2 will be around 573 for a 2 yr fixed or 624 for a 5 yr fixed making the total monthly repayments for M1+M2 either 950 or 1000.
this means that 60 k will be repaid in 15 yrs and the other 130k will be over 25 yrs. however if I overpay M2 by 200 per month, both M1 & M2 will be paid at the same time.
I have seen a mortgage by Abbey for the whole 190k required over 25 yrs. repayments will be 837 for a 2 yr fixed or 900 for a 5 yr fixed.
for those of you who have the knowledge and have been through something similar, which one would you advise and why?
many thanks in advance.
0
Comments
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What's the interest rate on M1?0
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53 000 is at 0.23% above base rate and the 7k (home improvements) is 1.49 above base rate0
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anybody with any views?0
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No-one in their right mind would give up a rate of 0.23% above base, but are you sure you can port and keep this rate? If so keep that and look for the best deal on the 130k.0
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Well over 30% would be on a very good tracker and the other 66% ? Would be fixed which allows 10% overpayments each year ?
You are taking on a huge mortgage of 3 times your current mortgage debt so I would consider the 5 year fix to protect yourself against interest rates rises.
Overpay the most expensive debt first if you can afford to.
Fixed rates have never been this low !!!!
Good luck with the new home0 -
Thanks for your replies so far people. keep them coming!0
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