Changing Mortgages??

[cmsbfent]

Hi all,

Posted a few threads on these here forums about mortgages but am finally at the stage now where I have put a deposit down so all systems are go. The next step then is to actually get the mortgage and I think i'm starting to get the principles together but have a question for anyone who may have just gone through something similar..

Basically, with HSBC ther is a home start mortgage where by for the first 2 years, you pay back a smaller figure based on the fact that its a interest only payments. My plan is to change my mortgage after this fixed rate period as seems to be the norm but I don't know how paying interest only payments will differ for me in the long run (after the 2 years) if i instead went for the 'normal' mortgage, fixed for the first 2 years but payments combined both capital and interest.

Obviously, I am off to see a mortgage wizz at some point but just thought i'd ask here as there seems to be quite a few people in the know..

Cheers

 

[gjrc]

re financing is done all the time. when the 2 years run out find out what deals are on offer and what you can best afford at the time.

then take whoever is offering the best deal for you. dont be brand loyal unless they are genuinely offering the best value (remember there can be high fees imposed for taking mortgages so remember to factor these into your calculations)

 

[Majago]

Just in case you were thinking of moving in the future, I'd make sure you get a portable mortgage as well to avoid any early redemption penalties. If not then it doesn't really matter.