Hi guy's. Basically i'm 27 and i'm sick of living at home. I refuse to move out and pay rent because the money is just completely wasted. I have managed to save up £10,000 and only really looking to get a small but nice 2 bedroom flat in Newcastle area for £100,000 budget.
So say I find the right place put down a £10,000 deposit and get a 90% mortgage at roughly 6% interest. I will be paying £586.70 and £450.00 of that will be paying the interest only! The idea of this makes me want to puke.
I was wondering if I was going to do something like this would that 6% interest rate reduce year upon year seeing as I've paid off more of the value of the property and by how much? Also if I was pay off lump sums off the property every now and then as often as I can will that reduce the interest rate also? I don't want to be paying that 6% rate forever.
So say I find the right place put down a £10,000 deposit and get a 90% mortgage at roughly 6% interest. I will be paying £586.70 and £450.00 of that will be paying the interest only! The idea of this makes me want to puke.
I was wondering if I was going to do something like this would that 6% interest rate reduce year upon year seeing as I've paid off more of the value of the property and by how much? Also if I was pay off lump sums off the property every now and then as often as I can will that reduce the interest rate also? I don't want to be paying that 6% rate forever.