Help! Advice needed.

Hello everyone,

Need some advice. I am moving house shortly and I will need to get a mortgage of £85K. :mad:

Due to my age the longest term I can get is 17 years.
I am getting a 5 years fixed rate at 2.54%. (then 3.99) with the H****x.
It is my hope/plan to have saved enough money at the end of the 5 years to pay off a lump sum.

Therefore should I get the cheapest deal possible now, i.e use the 17 years for the cheaper deal or get the mortgage for 14/15 years and pay more now. Or does it make any difference?

any help would be appreciated.


  • bexster1975bexster1975 Forumite
    1.6K Posts
    Part of the Furniture 1,000 Posts Photogenic Bake Off Boss!

    I would say get the longest term possible. That way payments stay lower. On a fixed you will need to check for overpayment limits, often 10% of balance at jan 1st each year. With your interest rate however you could put overpayments I to savings and make a greater rate of interest for quite a large amount of your money ( 3% with Santander up to 20,000 springs to mind).

    Good luck

    Bexster :)
  • LuckyinlifeLuckyinlife Forumite
    1.6K Posts
    I would as well get the longest term possible if you plan to pay it off in 5 years having the lower payments monthly can only help in the short term :]
    Mortgage--- [STRIKE]£67700 March 15[/STRIKE] [STRIKE]£65221 April 15[/STRIKE] [STRIKE]£64983 July 15[/STRIKE] [STRIKE]£64780 sept 15[/STRIKE] Remortgage [STRIKE]£67295 oct 15[/STRIKE] [STRIKE]£66599 Nov 15[/STRIKE] [STRIKE]£65878.73 Dec 15[/STRIKE][STRIKE] £64834 1st Jan 16[/STRIKE] [STRIKE]Feb 16 £64,511.89[/STRIKE][STRIKE] March 16 £64,056.40[/STRIKE] [STRIKE]April 16 £62550[/STRIKE] [STRIKE]May 16 £62,396.20[/STRIKE] Feb 17 £60.800
    Emergency fund 23k
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