5 yr fix at a high rate or 2 yr at a lower rate?

pcwilkins

pdel61 wrote: »

No it doesn't, you have £150k of debt, you may pay more back over the lifetime, but your debt is still only £150k, if the house was sold tomorrow you'd only have £150k to pay back not £320k

Oh, only £150k? That's ok then! :-)

I take your point, but I think it's well worth remembering that paying back a £150k mortgage costs a lot more than £150k. I think it's something that people often ignore, they just look at the monthly repayments and ignore the total.

I was simply making the argument that buying is not always more cost-effective than renting.

In any case, if you buy a house with a £150k mortgage and sell it tomorrow you've still got one day's interest to pay, and any fees which might apply --- so you've still made a loss on your investment over just one day! And selling a house takes weeks --- 10 weeks interest on a £150 mortgage is hardly an insignificant amount of cash.

In any case it appears Guapa1 is in it for the long-term.

Peter