mortgage advice for family moving

puffinstuff

We have just put an offer in on a property. We need to borrow around £115000 pounds and in ten years we will be able to pay what remains with retirement lump sum. We can afford approx. monthly payments of £850.00. Would we be better going for a lender that offers a 10 year fixed rate? We would be able to pay £50000 of the sum in 10 years. Can anyone make any suggestions. Have tried to get my head around the different mortgages, fixed rate, capped rate, variable etc but find myself in a muddle. Is there an idiots guide to wading through and making sense of these. Any advice greatly appreciated

Nick_A_2

Hi, there is a section on mortgages if you have a look at the forum list. There is also a mortgage guide available in pdf format I think.

HTH,

Nick.

herbiesjp

You dont say what your incomes are or what the value of the property is, or if you have any other debts - all importnat factoes for a lender when looking to agree a mortgage

As what type of interest rate to go for, will depend on your own attitude to interest rates, and how it would affect you if rates went up i.e. would you then be in dire problems if they did increase?

Let us know

HTH

getmore4less

From what you have said you the facts are

£115k now

£50k lump sum in 10 years so need to pay of £65k in 10Y

can afford £850.

Easiest calculation is for £50k interet only and £65k repayment over 10y

Use a mortgage calculator say https://www.whatsthecost.co.uk
assume some rates and work out if the plan will work.

rate     £50k(io)    £65k(re)    Total
6.0%     £250         £722        £972
5.5%     £229         £705        £934
5.0%     £208         £689        £907

I think you need to reconsider the payment plan if what you say are the facts because you cannot afford this loan unless you can get a VERY good rate.