Help choosing best mortgage for our situation please!!

Flurgie55

My husband and I have accepted an offer on our house for £295000 and have had an offer accepted on another house for £380,000. We haven't had a mortgage before so have been reading up about different types of mortgages, benefits etc. There's so much information my head is spinning and just wondered if anyone could shed a bit of light on what might be best for us..

We plan to do some work on the new house and probably don't want to stay there more than a few years (3-5yrs?) before moving on to the next 'project' if you like. Moving on from this new house, we'll likely want to borrow more and buy a bigger house. Can anyone suggest what might be the best things to take into consideration with regards to early exit fees, fixed rate introductory offers etc? We're not too worried about the monthly repayments so don't necessarily need a fixed rate, just want to try and get a good deal and know that we will be able to move on from the house without losing too much money. We are ones to regularly review our energy deals, phone deals, car insurance etc etc so hoping we will be able to do the same with the mortgage. It just seems that much more complicated at the moment.

Would be really grateful for any advice or info that may be of any help

TIA

amnblog

Get yourself a mortgage broker and some proper tailored advice.

The last thing you need is a barrowload off misdirected information on here from posters who do not understand your situation.

sannytwist

Good advice from amnblog. Defo need professional advice from a broker. Different mortgages have different conditions and not to be taken lightly. Taking advice from someone on this forum who doesn't know your situation is a bad move.

getmore4less

There is quite a lot to think about and very little information to go on.

have a think about

Total funding and cash flow.

How much do you need to complete the purchase(£100k) and refurb work(£???) with contingency(£???) funds.

Do you need all the money up front or could you benefit from a draw down facility.
Do have cash you can use along side borrowing

Will you have the income to support the level of borrowing needed
Will you want cash flow on the mortgage to be low(longer full term)
Once the cash flow on the build is done will you want to reduce the debt before the next move.

Moving is expensive and at this level of purchase you have £15k+ of sunk costs with each move, more on the next one if more expensive(£500k £20k+)


How likely is the move again window(3-5) to change
Will you be able to lock it down at some point before the 3y is up

How big a jump will the next move be so think ahead on the funding cashflow for that one

Any risks on income(s) to fund the debt.

Unless needing a shed load of cash to do the work you basic situation is a good LTV(<60%) so access to decent rate if the income and age will support affordability.

Short move time frame steers towards shorter term fixes initially(2,3,2+2) with a view to looking at longer terms and porting options.

if the build/contingency is significant and the project longish term say over a year some kind of drawdown may work.
Offset can be a good fit and also allows surplus income to create interest savings without loosing access like overpayments tend to.

One important thing to avoid is a cashflow crisis and a part finished project, you don't know if you will be able to borrow more in a year or two.


Really need to sit down with all your details and plans to go through some of the options with a broker.

Pretty urgent if you are at accepted offer stage as you will need time to absorb what might work best.