Not a great Mortgage deal but good to start with?

espud

Hey

Due to my situation with being self employed I am struggling to get agreement in principle for any mortgages.

I have been quoted a mortgage for £166,000 and it states that the total to be paid back is £280,000 over 25 years. But this is assuming current interest rates?

Could it be a good idea for me to go ahead with this mortgage with the intention of remortgaging in about 2 years time to a much better deal. If I do this will my current mortgage lender actually want £280,000 to be paid to them?!

So yeah I believe in 2 years time I will have

- 3 years of annual accounts for my business
- An even better LTV on my property as prices increase
- A lump to repay to be able to repay my mortgage

Obviously I realise there will be fixed charges I need to look out for but is this actually a bad idea? I worry that if I leave it another year or two my property will increase in value even more (I am in shared ownership in a nice part of south west london)

Regards

Tom

dimbo61

You will only pay the interest you have built up over the 2years of the deal.
If you remortgage to another lender you will have remortgage costs !!!
Know one knows what Interest rates will be in 2 years so why do you think you will get a Much better deal.
If you can overpay every month to reduce your debt as you get paid every month ?
The LTV will change little over 2 years unless you can overpay big style !

R_P_W

It's probable that the deal your getting now is pretty good. So unless your ltv ratio is going to improve in a couple of years I would not expect a better deal in two years time.

What is the rate you have been offered ?