Finding the right deal for us

NRG343

We had a fixed deal that has now ended so we are currently on std variable rate with our provider.

We want to get the best deal with greatest flexibility......there are some great 2 and 5 year fixed deals with no penalties for over payments.

We are looking to borrow £230K with and LTV of 46%.

MY wife is due to retire in the next 2 years (could be in next few months on medical grounds) with a golden handshake circa £100K.

The question is do we take a low 0.99% rate for 2 years with early penalties or go for a longer fixed at 2.09% with no penalties?

Its all about making the money work best for us, any help and guidance would be really appreciated.

getmore4less

Well you will have £130k for the two year whenever you get the £100k

The numbers will be less if on repayment and have overpayments without penalty so you need to give more info.

but for interest only

130*0.0209*2 = £5434
230*0.0099*2 = £4554

NRG343

It will be a repayment mortgage, the dilemma we have is which is the most cost effective route to take, what other info do you need ?

muhandis

In your place, I would go for a 2 year fix at the lowest rate (taking in account the product fee) that I could get which allows the 'standard' penalty free overpayment of 10%.

At 0.99% I assume you're talking about the HSBC 2-year fix? It has a whopping £1800 product fee which over 2 years is the equivalent of paying 0.39% extra annual interest on a mortgage of £230k. So please do consider product fees as well as the interest rate.

If you do get the lump sum earlier than expected, you could still use it to overpay 23k (10%) each year.

NRG343 wrote: »

We had a fixed deal that has now ended so we are currently on std variable rate with our provider.

We want to get the best deal with greatest flexibility......there are some great 2 and 5 year fixed deals with no penalties for over payments.

We are looking to borrow £230K with and LTV of 46%.

MY wife is due to retire in the next 2 years (could be in next few months on medical grounds) with a golden handshake circa £100K.

The question is do we take a low 0.99% rate for 2 years with early penalties or go for a longer fixed at 2.09% with no penalties?

Its all about making the money work best for us, any help and guidance would be really appreciated.

getmore4less

NRG343 wrote: »

It will be a repayment mortgage, the dilemma we have is which is the most cost effective route to take, what other info do you need ?

The info to work out all the costs

The actual amount you are looking to borrow

The deals you are looking at , rates, fees and penalties?

The full term of the mortgage, that will determine the contractual payment

What sort of regular payment you might want to make(from income not including the £100k.