Looking for new mortgage

neilo

Hi looking for new Mortgage
sold last year now renting( does that make me a FTB? )


Looking to buy house about £150000 put down £61000 so looking for a £89000 mortgage
I need to keep monthly payment LOW as possible maybe fixed if possible
income £35000, joint mortgage 36year old and 42year old
what is the best way to keep low payments?, how long can i get a mortgage for?

Cheers

Mortgagehero

As you had a mortgage a year ago most lenders will not view you as a first time buyer.
There is no real way to "keep your payments low" as if you elect to fix your rate and interest rates come down you will not benefit from the rate cut. This works both ways as if interest rates go up and you are on a fixed deal your rate will remain unchanged (during the contract period) meaning that you will benefit from the arrangement. As there is no way of knowing what interest rates will do in the future there is no guarantee that you will be on the positive side of things.
You need to ask yourself would be able to cope if you elect to go for a tracker deal and rates go up? The market opinion at the moment is that rates are likely to be cut in the early part of next year which would benefit you if you have a variable deal. Beyond that anything can happen! Variable rates are generally cheaper at the moment and offer better value for money but it really is a personnal choice for you to make as to whether to fix or not.
To answer your question as to how long can to take the mortgage for, lenders are happy to lend up until the retirement age of 65, but some will lend to age 70.

Hope this helps.

Mortgagehero.

herbiesjp

Most lenders will not class you as a FTB - but that really will not make any difference on the deals available to you.

The figures you are looking at are no problem at all - assuming no other huge debts in the background or major adverse credit history.

Again every lender is different, so whilst some go to age 65, some 70 some do not have an upper age limit - however you will need to demonstrate affordability post retirement age i.e. pension or investment income etc.

Fixing is an option, but does not necessarily mean low rates - you can find stepped fixed rates, which start low, but then increase to a higher level normally after the first year. Variable rates in their various guises could work out cheaper, however they may be higher now and then go low, or alternatively thaey could start low now, but then end up higher. No one really knows what rates will do.


You could look at interest only, as a means of having lower payments, however this means you are not paying off any of the capital. You would normally set up a savings policy, unless you already have one, that could ultimately clear the mortgage amount. Or you could sell the property as a means of clearing the mortgage debt.

There are numerous options available - it just means having to filter down these options as to what is best for you