Associate
- Joined
- 15 Dec 2011
- Posts
- 226
Hi All,
I know there is no right or wrong answer - Personal preference, risk appetite etc - but interested in views of a collective.
Moving home - Purchase Price £460K, Deposit £150K = Mortgage of £310K
5 year deal - 1.69% (£1270) & 10 year deal - 2.44% (£1393) - Fixed with both being portable ie can move/use against another property and allowing 10% over-payments per year.
Can take up to 29 year term but likely go for 25.
I am going to model it out on a spreadsheet to see what it looks like but I cant see mortgage rates staying below 2% in 5 years - so 10 year deal seems sensible - I am unlikely to need to move again from this house - plenty big for now and any future possible changes.
Only thing I am not protected from is a) Not being able to afford a mortgage of this size and b) Dying - in which case I would face 6% penalty.
Other thinking is take the 5 year and overpay like hell - then at end either rates are still low and good stuff - or they are higher but I have brought balance down so net payment ends up lower.
Interested in thoughts - As I say - I know there is no right or wrong and we cant predict the future - But interested in others collective thinking.
Crowdfunding for decisions if you will!
Cheers
I know there is no right or wrong answer - Personal preference, risk appetite etc - but interested in views of a collective.
Moving home - Purchase Price £460K, Deposit £150K = Mortgage of £310K
5 year deal - 1.69% (£1270) & 10 year deal - 2.44% (£1393) - Fixed with both being portable ie can move/use against another property and allowing 10% over-payments per year.
Can take up to 29 year term but likely go for 25.
I am going to model it out on a spreadsheet to see what it looks like but I cant see mortgage rates staying below 2% in 5 years - so 10 year deal seems sensible - I am unlikely to need to move again from this house - plenty big for now and any future possible changes.
Only thing I am not protected from is a) Not being able to afford a mortgage of this size and b) Dying - in which case I would face 6% penalty.
Other thinking is take the 5 year and overpay like hell - then at end either rates are still low and good stuff - or they are higher but I have brought balance down so net payment ends up lower.
Interested in thoughts - As I say - I know there is no right or wrong and we cant predict the future - But interested in others collective thinking.
Crowdfunding for decisions if you will!
Cheers