Mortgage ideas

CrazyIndianZA

Hi,

Having consulted some mortage mags and the moneysupermarket site, this first time buyer is hoping for some recomendations from the knowledgable folk at moneysaving

- Looking for a mortgage of about 250k, and this is after 15% deposit. Don't want/need cashback on the mortage
- want the ability to overpay/flexible because we generate will be able to generate free cash flow of 20-30k per year
- not looking for a fixed rate
- will likely move the mortage to a better deal whenever

thanks in advance!

P.S One other question...how do you go about extending leashold ? place I am interested in has 74 years remaind with current ground rent of £60pa

payless

CrazyIndianZA wrote:

- Looking for a mortgage of about 250k, and this is after 15% deposit. Don't want/need cashback on the mortage
- want the ability to overpay/flexible because we generate will be able to generate free cash flow of 20-30k per year
- not looking for a fixed rate
- will likely move the mortage to a better deal whenever

P.S One other question...how do you go about extending leashold ? place I am interested in has 74 years remaind with current ground rent of £60pa

1. remember stamp duty at 3%
15% - most lenders won't charge a Higher Lending Fee / Migp
2. A lot of deals - even those with ties allow 10% pa overpayment without penalty- allow terms do differ
3. If not fixed- then variable then ( SVR, discount, tracker, Current A/c, Offset or even capped are your options). At the moment fixed are very competitive as well as offering sercurity , but yes you could loss out if variable dropped
4. Deals that allow swapping at any time usually come a a slight premium, - think whether you are really going to do this


Obviously the above assumes suitability & qualification for a mortgage
This is not a recommendation for a mortgage or any particular type / lender.

There's lots of info- including compariaon tables on www.fsa.gov.uk
to help with your research, or consider seeing a broker

There's a lot on the internet about leases ( extending or purchasing )
http://www.odpm.gov.uk/stellent/groups/odpm_housing/documents/page/odpm_house_027099-06.hcsp
for example - although a google search will no doubt throw up a lot more

Froggitt

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