Scary Stuff!

moneysavinmonkey

porkpie123 wrote: »

I must say i am amazed at all your help i thank you all. we will talk this weekend about the renting/buying situation.
in other news, i have been just ringin around about mortgages, my financial advisor came up with - £635 a month, 2 years fixed rate. however, i then rang around a bit more and offered ppl to beat it and got £635 fixed for 3 years!
anyways, then i got a call from another EA and he said a new mortgage is coming available this friday, which i cant remember the exact figures but it was about .15% less than what these other quotes are, and fixed for 5 years.
what do we think of these sort of mortgages?
and yes renting is defo something we gonna talk about. cheers again, one word for you geezers, 'amazing'.

Hi you need to look into what the arrangement fees and exit fees are as well... you may be getting a competitive rate but then if they whack £1000 fees on top suddently not so competitive - as the amount you are borowing is (relatively) small then it may work out cheaper to go for a no fees deal with a slightly higher rate....

I would definately consider renting before buying though.. a mortgage is a huge commitment!!

Sugarplumfairy_2

Not knowing an awful lot about mortgages, I can't give you any advice except from personal experience.

I had an interest only mortgage when I first purchased my house. It was the only way I could afford to get on the property ladder. Although some people say its like throwing money away because you don't make a dent in the mortgage, I benefited from being able to live from month to month without starving and also gained equity on the property when I sold it, which you wouldn't get if you were renting.