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Re-mortgaging advice
RooBear_3
Posts: 4 Newbie
I'm in an unusual position, my partner's parents have bought a house for us to live in. However, we are paying them the cost of the mortgage.
The plan is that as we bought it cheaply it works out less than paying rent - and we can be our own landlord.
However, the old deal is now coming to an end so a remortage is needed.
Previously they kept their mortgage with Abbey so have not had experience in remortgaging and I have never done it.
I'm just looking for some advice, we need an interest only mortgage for £120,000 at a 55% LTV.
We expect to move out and sell this place in about 2 years(minimum) so need no early payment charges to pay them.
My in-laws want to be able to make overpayments as and when they like.
And all we care about is the total cost over the term we keep it for (2-3 years).
I'm confused at what is the best option - cashback mortgage sounds great as we could do with the money to do things such as buy a car, but it does sound like it could have catches I haven't noticed.
Fixed rate sounds good, but we could happily be losing out in a years time if they cut the rates more.
Tracker looks good, but will it cost us more?
Offset looks like it could give us flexibility we desire but possibly not so competitive.
Due to our jobs we don't have time to meet or call brokers so are doing it all via internet.
If anyone could help...
PS the best I had seen was HSBC 0.62% discount for 2 years & £295 fees.
The plan is that as we bought it cheaply it works out less than paying rent - and we can be our own landlord.
However, the old deal is now coming to an end so a remortage is needed.
Previously they kept their mortgage with Abbey so have not had experience in remortgaging and I have never done it.
I'm just looking for some advice, we need an interest only mortgage for £120,000 at a 55% LTV.
We expect to move out and sell this place in about 2 years(minimum) so need no early payment charges to pay them.
My in-laws want to be able to make overpayments as and when they like.
And all we care about is the total cost over the term we keep it for (2-3 years).
I'm confused at what is the best option - cashback mortgage sounds great as we could do with the money to do things such as buy a car, but it does sound like it could have catches I haven't noticed.
Fixed rate sounds good, but we could happily be losing out in a years time if they cut the rates more.
Tracker looks good, but will it cost us more?
Offset looks like it could give us flexibility we desire but possibly not so competitive.
Due to our jobs we don't have time to meet or call brokers so are doing it all via internet.
If anyone could help...
PS the best I had seen was HSBC 0.62% discount for 2 years & £295 fees.
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