Mortgage options

[Wilmslow]

I have two mortgages to pick from.

One is a rate of 2.15% above base rate, the other is 1.99% above. Both fees are around £800 which is good just now.

This equates to around £50 a month difference between the two (or £30 on the Interest Only aspect).

The 1.99% route means that the interest only mortgage will be reviewed in 10 years, when they may make it mandatory to go to repayment for the remainder of the term.

Is this a big deal, or, should I keep it clean for the offer in hand for the 2.15% option?

I don't know of any 70% ltv mortgage better than 1.99 above boe base rate tracker (lifetime), but if you do, please share.....

[alreadypacked]

I am old fashioned, I would only consider a repayment mortgage 10 years max. after that interest starts to compound, interest on the interest

[Wilmslow]

I am old fashioned, I would only consider a repayment mortgage 10 years max. after that interest starts to compound, interest on the interest

Agree, wish I could afford that! Much of my money is tied up in the other house I am renting, at the point of sale I would make a substantial overpayment.

I will be making a regular overpayment anyway, more than the repayement mortgage, but I am totally with your point.

[EternalOptimist]

live in a tulip-hole and save up. then buy your house cash.

its the contracting way.


pah. youth of today

[sasguru]

The answer is neither. You clearly can't afford to buy a property so don't.*


*This Q and A session between my sockie and me was brought to you as a free public education service. I may conduct further such Q and A sessions to illuminate certain points of interest/common sense about life in Britain.


HTH

[Wilmslow]

The answer is neither. You clearly can't afford to buy a property so don't.*


*This Q and A session between my sockie and me was brought to you as a free public education service. I may conduct further such Q and A sessions to illuminate certain points of interest/common sense about life in Britain.


HTH

Already living in the detached house in leafy Wilmslow - the rent money from the letted property actually pays the interest payments on both properties, meaning I can make a substantial overpayment each month.

The problem being that banks like PEP's as repayment vehicles and do not entertain repayments, even though this is reducing the amount owed.

I could easily sell both and live in a nice apartment in Wilmslow or a mansion in Wakefield, not that I would want to move there......

[sasguru]

Already living in the detached house in leafy Wilmslow - the rent money from the letted property actually pays the interest payments on both properties, meaning I can make a substantial overpayment each month.

The problem being that banks like PEP's as repayment vehicles and do not entertain repayments, even though this is reducing the amount owed.

I could easily sell both and live in a nice apartment in Wilmslow or a mansion in Wakefield, not that I would want to move there......

And as repayments are not happening, folks, essentially my sockie has large amounts of principal owing that he cannot pay unless he sells his property.
I have created this sockie as an illustration of the stupidity of modern Britain.

HTH

[Wilmslow]

And as repayments are not happening, folks, essentially my sockie has large amounts of principal owing that he cannot pay unless he sells his property.
I have created this sockie as an illustration of the stupidity of modern Britain.

HTH

Repayments are happening - at current rate should clear the mortgage in 15 years. Wanted the flexibility of IO to make the return to contracting easier - I can just pay IO or make whopping overpaymemnts accordingly.

[AtW]

I have created this sockie as an illustration of the stupidity of modern Britain.

That was redundant so long as you kept posting under sasguru login...

[thunderlizard]

live in a tulip-hole and save up. then buy your house cash.

That's my 3-stage plan. Stage 1 achieved; stage 2 to begin as soon as funds permit.

tl