New to Mortgages - some information/advice?

DannyWhoWorks

Hiya,
Firstly, please accept my apologies for my naivety when it comes to mortgages. As you will be able to tell, I am a first time buyer with no experience with mortgages.
In approximately 10 months’ time, I want to get myself onto the property ladder. My aim is to buy a small 1 or 2 bedroom apartments in the area I currently rent. Praying that prices do not rise hugely within the next 10 months, I will be looking at properties between the price bracket of £100,000 - £115,000. I will have a deposit of approximately £80,000. Therefore, I would require a mortgage of around £35,000
I have been looking around at mortgages but they confuse me hugely! This is what I am looking for:
A mortgage where I can pay the minimum monthly repayment but also pay off chunks at a time when I am able to (within 2 years I think I could pay the mortgage off!).
However, when I look online, the mortgages come with conditions such as early repayment charges! Are they all like this? As I don’t really want to only pay the minimum or be charged when I want to pay a bulk off. The mortgages I have been looking at (and getting confused about!) have monthly repayments of figures such as 250ish a month but I’d be looking to pay up to a £1000 a month when my finances let me.
Anyone know if this is generally ‘do-able’ when it comes to mortgages?
Also, is there any other tips or advice you would give novice like me?
Kindest Regards!

stator

Most mortgages allow 10% overpayments without penalty.

You could look at an Offset mortgage. That way all the money in the savings account part means you don't pay interest on an equal part of the mortgage. The downside is that the mortgage rates are slightly higher. This is because you're not fixing anything. If you take out a fixed rate mortgage the bank will take out various hedges against your mortgage, these hedges have costs so they don't want you to repay the mortgage quickly. With an offset mortgage they don't do this so the costs are a bit higher.
Eg if you have £50,000 mortgage nd £20,000 savings in the offset accounts you pay interest on £30,000

kingstreet

There are base rate tracker products in the market with no early repayment penalties, so you can pay off as much as you want, when you want.

amnblog

DannyWhoWorks wrote: »

Also, is there any other tips or advice you would give novice like me?

Engage a mortgage broker

ACG

There are a few lenders who have mortgages with no early repayment charges (but typically these are smaller lenders not on the high street - which doesnt necessarily mean higher interest rates).

There is also the offset option as mentioned above.

But I would suggest speaking to a broker. They will do the research for you and do it all - so you do not need to start learning about mortgages but instead just take guidance on what to expect and when in the whole process.