Mortgages ?

[Kmac84]

Ah thanks for the replies, thought I am not completely sure on your abbreviations KMAC.

It's quite weird really, I actually have an existing loan with the bank, but never thought of a mortgage, but I don't think I could do both properties tbqh

LTV - Loan to Value
DIP - Decision In Principle.

[toddswain]

Update


Found a home.. Got mortgage advisor supplied, was advised either of the following mortgages on a 75% mortgage;

2 year fixed rate at 2.19%
3 year fixed rate at 2.79%
5 year fixed at 2.89%

She suggested there's not really a right desicion.


Is there a slightly better option here ?

[bobAlike]

Update


Found a home.. Got mortgage advisor supplied, was advised either of the following mortgages on a 75% mortgage;

2 year fixed rate at 2.19%
3 year fixed rate at 2.79%
5 year fixed at 2.89%

She suggested there's not really a right desicion.


Is there a slightly better option here ?

Not a mortgage expert other than having one but if you can afford the 5 year deal then I would go with that.

[Marky147]

Probable that 5yr fixed rate mortgages will go up by more than 0.7% in the next 2-3 years (from the 2.89% you're offered)

Any 2 or 3 year deal is likely to end in a rising rate market.

At 75% LTV there are currently some 5yr fixed deals on the market at better than 2.89%.

[toddswain]

Using help to buy?  With no product fee and £500 cashback

Spent a good few hours searching after advisor left and couldn't find much better that I was eligible for

[Marky147]

Using help to buy?  With no product fee and £500 cashback

Spent a good few hours searching after advisor left and couldn't find much better that I was eligible for

Yeah, my bad.

You're buying rather than remortgaging, sorry.

 

[toddswain]

Ha no worries did it myself a few times thought I'd found a much better deal, I hadn't

[Marky147]

Ha no worries did it myself a few times thought I'd found a much better deal, I hadn't

[BorntoBubble]

According to a source at the Bank of England there intention is no greater than .25% rises yearly. Not sure how that affects this. I would probably take the 5 year fixed rate as I dont believe it.

[OverTheBorder]

Depends how tight your affordability is. Security is always nice. The financial market assumes base rate will be 2.5% in 5 years. That's what's currently priced in, however in last 5 years they have been wrong every year. In a volatile market I would take stability of 5 years personally but unless you have a strong view on rates not sure there is a right wrong answer just inevitable buyers regret

(If it makes you feel better I am 5.75% as my Mrs has credit jacked us 😢)