A few mortgage questions.

gcamac

dimbo61 wrote: »

Are you going to live in this house for only 2 years? rates will be higher in 2 years ( I think!!)
If you plan on staying for at least 5 years why not consider a 5 year fix or offset and save into the offset account ( emergency savings)

We plan on staying for at least 5-7 years, if not longer. I'm not sure of the pro and cons of overpaying if we're only staying for say 5-7 years. I know we need to renegotiate a rate after our initial 2 years at a fixed rate. So whether we go variable or another fixed term of say 5 years, I don't know.

KirkZiggy

I just got my Mortgage through a company called Capital. They give mortgages at rates of 2.8 - 3.3% and they guarantee approval as long as you have the 10% deposit and 1% finders fee.
Reading this makes me realise how much I lucked out! It's insane how little actually goes to paying off the loan.
Their website is capitalfinancial-consultants and you can get the contact details from that.
It can be hard to get the 11% but the interest rates will save you thousands over the 25 years and I haven't seen better yet.

Thrugelmir

gcamac wrote: »

I know we need to renegotiate a rate after our initial 2 years at a fixed rate.

There's no negotiation. You choose what from the available options on the market at the time. Switching lenders can incur considerable cost. So no just a question of choosing the lowest headline rate.

snowscreamer

gcamac wrote: »

We plan on staying for at least 5-7 years, if not longer. I'm not sure of the pro and cons of overpaying if we're only staying for say 5-7 years. I know we need to renegotiate a rate after our initial 2 years at a fixed rate. So whether we go variable or another fixed term of say 5 years, I don't know.

How long you plan to stay in this house shouldn't have any bearing on whether you make overpayments or not. When you move you will still have your mortgage to pay off, the term of the mortgage is 35 years. It's just secured on another house. Making overpayments (if you can afford it and there's nothing else you could better spend the money on at the time) will still reduce the total amount you owe and save you from future interest.