Short term mortgage?

beecher2

I am interested in buying a new build property, I am presently mortgage free and due to receive some money which would allow me to buy the property as a cash purchase.

If I sell my house and haven't received the additional money in time I'd need to get a mortgage. Would be about 30% LTV and 2 times salary. No credit issues. Could I get the Nationwide tracker at 1.84% with no ERC as a short term mortgage? How long do you have to have a mortgage before paying it back?

Or are there alternatives I should be looking at?

thanks very much, just trying to work out options.

getmore4less

You can pay it off the next day.

There may be penalties with some options.

Why not get a long term 20years on a good rate say a 2 year fix and just let it run 2 years.

Don't be keen on telling your lenders you only want a short term mortgage.

You could look at offsets and just have a easy access low cost line of credit.

beecher2

Thanks getmore4less, Im 51 so not sure how long a term I'd get. The tracker is cheaper than a fixed, and I'd be really keen to pay it off as soon as possible - don't need any credit, touch wood.

thanks very much for your help, hopefully it'll all pan out without the need for a mortgage but just want to understand the options.

DannyPearce90

That particular deal is a 5 year fixed term. So you could only close the account down without penalty after 5 years.

beecher2

Thanks, 5 year fix with ERC is 1.89% and 2 year tracker without ERC is 1.84% on the site I'm looking at.

nicholbb

Look at an offset, fix for a short time and when you have the cash put it in and you are effectively mortgage free without an early repayment charge.

beecher2

Thanks very much, that's something to think about too. Hopefully it will all be plain sailing and I won't need a mortgage, but always good to have a Plan B.

Thanks for advice on not being keen to tell lenders it could be short term- I'm awful for being giving away too much information and I'll keep that in mind!

kingstreet

You can do an 18 year term with no issues, setting your selected retirement age as 70.

With no ERCs, you can pay it off when you like and have lower monthly payments before you are able to do so.

beecher2

Thanks kingstreet, that's good to know. Sounds like a good option, should I need it.

beecher2

Hi

Just an update - I have a DIP from Nationwide who are happy to give a 23 year term mortgage as they lend up to the age of 75. Crazy stuff.

Mortgage adviser recommended the same product I had my eye on so that's good.Hoping all will be plain sailing and I can pay it off at my leisure.

Thanks again.