Help! Advice needed.

irishlassie

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.

bexster1975

Hi

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

Luckyinlife

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 :]