First time buyer scared lol

suggy

Ok ime 34 single and in the process of buying a flat for £70000 ,ive got a deposit of £3500 and i earn £15000 a year plus the only other loan i have is car finance of £161 a month for 4 years.
Ime in the process of getting an interest only mortgage for the first 2 years of payments £290 .which is fine but after the 2 years as ended i will have to start paying the capital aswell as the final 2 years on the car finance which scares the hell out me because ime not an a massive wage .
what am i likely to be paying back in 2 years time
any info most gratefull

MarkyMarkD

If I was you, and it isn't too late, I would have refinanced the car loan along with the mortgage.  This would mean that you could have taken the whole loan as repayment from the start, with lower payments than you will have now, and wouldn't have the huge hike in payments in year 3.

I have no doubt that you are paying more on the car loan than you will be on the mortgage.

I really don't think that interest only deals which switch to a repayment are a good idea, unless you are desperate.  I think there are better ways to pay less in the first few years (like buying a cheaper mortgage in the first place or using the opportunity to rationalise your total borrowing).

Edit: I note that you are only paying 4.4% on the new mortgage - which is a good rate - presumably 2 year tracker with Abbey or 2 year discount with A&L?

suggy

Thanks for the reply m8 but ime still none the wiser ive searched loads of different mortgage deals but can,t get one which has lower payments without bumping up my deposit. ime looking to find a completely differnet mortgage deal in 2 years time and i was asking what good deals are out there.
this deal at the moment is just to get me on the mortgage ladder.
Differnet quotes say i should only really afford a mortgage of £55000 which is crap.
time is running out and i don,t want to lose this flat which is ideal for me.thats why i have opted for this interest only mortgage for 2 years.

Reaper

To find out how much the monthly repayments will be on your mortage go to this web site and type in the figures for the interest rate, mortgage amount (£66,500) and remaining term (23 years?)