Tools, Tricks & Advice For Comparing 2yr & 5yr Fixed term Mortgage.

strawberries1

botchjob wrote: »

You'll have to do the sums to see if the numbers stack up but one way to get the LTV down to 60% would be to put more of your savings into the deposit then, after the mortgage has gone through, take out a personal loan to cover the moving costs.

It may be that a 60% LTV mortgage + the repayments on a small personal loan make more sense over 5 years, than a 70% LTV mortgage does

Wow! It makes perfect sense. I also have HTB ISA to claim so that will help too.
I'm learning so much. Thank you.

strawberries1

getmore4less wrote: »

A 2 year deal will get you there.

oh you decided a 5 year deal is better.

how much are you borrowing? fee deals may be better

I just saw your calculation on another post and I've had another go exploring the link you posted. http://www.whatsthecost.com/mortgage.aspx
I'll appreciate your input please.

£175,200 over £20years no fees. 60%LTV
1.59% for 2yrs or
1.94% for 5yrs

I was considering 5yr fixed cos I felt Brexit might cause interest rate raises but now I don't think it'll have gone up by over 1% in 2yrs if I was looking to remortgage in 2yrs so I'll like to be certain about the saving between a 2 and 5yr term.

I'm looking to confirm from my lender what their current remortgage criteria is; in case circumstances change and I'm self employed or have kids in 2yrs at remortgage.
£159,437.04 owing at the end of 2yrs @ 1.59% (perhaps 2.19% for 3yrs if rates have risen by.5%?)
£159,953.85 owing at the end of 2yrs @ 1.94 but another 3years to go at same rate.
About £516 difference + £672 difference in the 2yr payment.
I'm not sure I've done this right but still I want to thank you and botchjob for opening my eyes in this way.

getmore4less

easier to make the payments the same.

£175,200 @ 1.94% 20y £881pm

in 2 years paying £881pm

£175,200 @ 1.94% £160,584
£175,200 @ 1.59% £159,388

the next 3 years 5 in total still paying £881pm

£160,584 @ 1.94% £137,569
or
£159,388 @ 2.21% £137,544

you are covered for a 0.62% rise.
you can work out for various rises @ Y2 what the saving/cost will be.