Advice please - FTB Offer accepted

Pete9501

If rates do go up even a little bit then that 5 year fix won't be available for anything like its current rate.

dimbo61

" £118K required. Joint income is £37,180 "
That is to me a big mortgage on that JOINT income so taking a longer term and overpaying every month ( 10% overpayments are allowed on most fixed rate deals) would be the way to go

ViolaLass

dimbo61 wrote: »

" £118K required. Joint income is £37,180 "
That is to me a big mortgage on that JOINT income so taking a longer term and overpaying every month ( 10% overpayments are allowed on most fixed rate deals) would be the way to go

THey'd be spending about 1/3 of monthly net income on payments (if they go for the fixed deal). Perfectly affordable. Three times joint income isn't particularly big.

While your advice to go for longer and overpay isn't bad, I think you're being a little alarmist.

crofty11

thank you everyone. after lots more research this eve i think we are back to looking at a fixed deal.
The 18 years came about from the affordability the broker did with us, but like has been mentioned things can change in circumstances.
I'm now thinking 22-25 years,4 years rather than 5. the NW 4year flexclusive fix 2.69% is coming out top of the best buys. 25 years heading to being over-[FONT=&quot]cautious?

We had DIP with NW over the phone - if we do decide the above (pending any more opinions here) from reading other posts it seems online application is the way to go?
thank you, again.
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Butti

Why do you think rates aren't going up? They have been held artificially low for a really long time. I would suggest you go and look up Black Monday.

ViolaLass

crofty11 wrote: »

I'm now thinking 22-25 years,4 years rather than 5. the NW 4year flexclusive fix 2.69% is coming out top of the best buys. 25 years heading to being over-[/FONT][/SIZE][FONT=&quot]cautious?

Please don't take my post to mean that you shouldn't go for 25 years, if you feel it's right for you. My point was rather that I didn't feel that 18 years was necessarily a bad term for you but longer is, of course, safer and if you intend to overpay it won't make much difference to the overall amount paid.