Mortgage Novice

bubby08

Hi guys,

I am a completely novice when it comes to mortgages I have a couple of questions if you can assist

1) when taking out a mortgage what figure appears as debt on your credit file total to repaid of the lifespan of mortgage including when your mortgage switches to variable rate? Or the amount of lending plus the interest of your fixed term?  

1a) whatever this figure is how relevant is it to future lending? For context I am debating a 2y or 5 y fixed period but I’m trying ascertain if the fact the 2 year has more interest and thus a significantly  higher projected net debt is relevant and will in pact my lending ability in the short to medium term

2) is it better to over pay on a 5 year rather than pay the scheduled amount for the 2year. For context an over payment of roughly £100 per month is the same monthly amount as the 2 year so I’m wondering purely from a economic point  you which is best. The answer to the question 1 would have some impact on this.

3) does the fixed rate ERP apply if you re-package your mortgage with the same lender should the be offering lower rates. 

Thanks for helping if you can.

ACG

1) The balance of your mortgage. It cant give a balance on the total to be repaid because there is no way to calculate that unless you have a fixed rate for the full duration of your mortgage. The variable rate by its very nature will change and most people will never go on the SVR. 
1a) it wont matter as this figure would be redeemed when the new mortgage is taken out. However, generally speaking you can get a larger mortgage if you fix for 5 or more years due to FCA rules. 

2) Impossible to say without knowing the balance, fees and rates. 

3) Usually yes. Although some lenders may waive it in the last 3-6 months. 

bubby08

Thank you so much,

so In essence of you your mortgage loan is £100,000 this is the amount that’s applied to your credit file not the amount plus interest?

2) so for example. The 5 year is £1000 at 4.95 % I’m planning on repaying £1100 per month 
the 2 year is £1100 at 5.56 and imm planning to pay this back at that amount. 

4.25% of loan after 1 year
4% after 2 years
2.5 after 3 years 

3) Thank you