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If you had a mortgage of 140k at 80% LTV.....
FIRSTTIMER
Posts: 637 Forumite
Would you fix at circa 2.1% for five years or go for circa 1.8% for 2 years.
Based on Brexit and potential drops in LTV to better deals at 70% LTV in two years?
What are peoples thoughts. No plans to move and if needs be, will rent out or get consent to let for a year or two or worst case move and port the rate.....
Based on Brexit and potential drops in LTV to better deals at 70% LTV in two years?
What are peoples thoughts. No plans to move and if needs be, will rent out or get consent to let for a year or two or worst case move and port the rate.....
0
Comments
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My personal option (FTB) is for longer fixes at the moment.
Ultimately I think it depends on your risk profile - I prefer the security of knowing that for 5 years I've got a pretty decent deal, paying £xxx per month - whether my house value goes up, down or stays the same. Same with the base rate.
Given all the fuss over Brexit - I'm in the camp that house prices will either stagnate and/or interest rates will be coming up - meaning even if you get below 70% LTV, interest rates will be higher for the lower LTV bands than they currently are for higher.
Are we at record low rates for mortgages? I know we were for Personal Loans a few months ago (and they’ve slowly risen since). I prefer to grab a record low rate than gamble on it going lower/staying the same0 -
Agreed - think that is my thought view at the minute.0
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Unless your mortgage term is very short you may not have 70% equity after two years...."You've been reading SOS when it's just your clock reading 5:05 "0
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It's the payments that determines how much is left in 2 years
£175k value 80% £140k 70% £122,500
in 2 years
£140k @ 1.8% £927pm £122,492
keeping that payment full term paid off in 172m(14y 4m)
add in a modest HPI of 5% £183,750 70%LTV £128,650
£675pm 249m(20y 9m)0 -
getmore4less wrote: »It's the payments that determines how much is left in 2 years
£175k value 80% £140k 70% £122,500
in 2 years
£140k @ 1.8% £927pm £122,492
keeping that payment full term paid off in 172m(14y 4m)
add in a modest HPI of 5% £183,750 70%LTV £128,650
£675pm 249m(20y 9m)
and on a repayment mortgage its the term that will determine the payments....."You've been reading SOS when it's just your clock reading 5:05 "0 -
sammyjammy wrote: »and on a repayment mortgage its the term that will determine the minimum payments.....
Let me correct that for you0
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