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Mortgage: second opinion please

Hi
I would like a second opinion if I may.
I have some figures from a financial advisor but my family think the rates seem high or maybe they are wrong.
I own a flat that he advised I remorthahe from 50,000-80,000 this will enable me to pay deposit on a new house. The repayments will be £469 25 years and repayments on new property will be £475 25years. This works out as 6.5% interest rate for flat and 5.8% interest rate for new property. Do these seem high? Given that i have a sub zero contract and work part time with working amd child tax credits maybe this limits my options for a good rate, I dont know.
Thank you

Comments

  • ruggedtoast
    ruggedtoast Posts: 9,819 Forumite
    I don't really understand what you are paying for what, but if you're stumping up more than 4% then you are paying a lot in today's market.

    A 25 year fix is going to be the priciest option so maybe you should look at shorter ones.
  • Annie1960
    Annie1960 Posts: 3,009 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper Combo Breaker
    If you're determined to go for a 25 year fix, make sure you understand any early repayment penalties, in case you want to move or sell for any reason. Having said that, back in the late 80s we were paying 15%. A lot can happen to the economy and interest rates in 25 years.
  • Kynthia
    Kynthia Posts: 5,692 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Try posting in the mortgages and endowments board in the forum as there's more brokers ther. However you might need to give more detail like your salary, is your flat mortgage onto a BTL rate, value of the new house, etc.
    Don't listen to me, I'm no expert!
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