We've seen a mortgage adviser but she was very general and didn't advise the best course of action. Not sure if we are going to keep the propoerty short or long term yet so that probably doesn't help!
2006-10-12 23:05:38 · 11 answers · asked by Philadelphia 2 in Business & Finance ➔ Personal Finance
Well when I got mine I went fixed rate (I am a 1st time buyer) for 5 years. That way for me I know what I'm paying out for 5 years.
I'd say this is good for your first time as you don't have to worry about rising rates. Yes rates can fall but you knever know really.
2006-10-12 23:08:25 · answer #1 · answered by Anonymous · 2⤊ 0⤋
You need to decide your attitude to risk with regard to your mortgage. If you are cautious and worry about money then go fixed on repayment as you know what you will be paying for the fixed period or that the mortgage will be repaid at the end of the term. If you are more risky you could look at interest only and use something like an isa to repay the mortgage. There is talk that interest rates may go up at the next discussion. I think a short term fixed interest rate is what I would do. You need to talk to a good independent financial adviser. A contact for you is whitejenjane@aol.com
2006-10-12 23:19:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Fixed mortgages are the safest no matter how long you keep the property. Especially in this day and age a variable rate mortgage is risky.
You'd be better off in your life to get the mortgage and pay it off early so that you don't owe on your house. 1 payment extra a year takes 5 years off of your 30 year mortgage. If you could swing it making 3 extra payments a year you could have your house paid off in 15 years. Wouldn't that be a comfortable feeling?
2006-10-12 23:10:37 · answer #3 · answered by noobienoob2000 4 · 0⤊ 0⤋
Variable (ARMs) and interest only are basically loan shark products that reset to much higher rates in as little as a few months, sometimes doubling payments. Can you afford double in a couple of months ? 15 or 30 year fixed is the safest unless you actually are planning to try and flip it in like 60 to 90 days. Many mortgage people get more $$ commission from selling the variable or interest only. Go to the bank or credit union & have them review your options and costs.
2006-10-12 23:18:00 · answer #4 · answered by kate 7 · 0⤊ 0⤋
Regarding to the UK. I reckon I've missed the boat when it comes to houses and the boom. I'm like you I have a 10% deposit but I'm going to wait until mid next year until I buy. I think interest rates are going to rise. With Tony Blair going, we'll likely get a new chancellor of the exchequer. It's uncertain what he'll do, most likely Gordon Brown will become prime minister and appoint a fall guy as chancellor of the exchequer who'll make the tough decision of a hike in interest rates which will see a slight drop in property prices outside prime locations. But that's only my two cents.
2006-10-12 23:21:48 · answer #5 · answered by Jay W 1 · 0⤊ 0⤋
seems you've gotten most of the important stuff concerning type of loan, but I would suggest you look at the idea of putting 10% down as a deposit. When all is said and down, putting down 10% may or may not result in much of a savings against total amount to include interest to be paid. Here's a site that allows you to run numbers through mortage calculators: Here's one option to consider: Put the 10% money into a money market or other instrument that earns interest. Then make extra mortage payments to reduce total interest you pay on the loan. This may or may not put lots of extra money in your possession. Just some ideas to consider.
http://www.dinkytown.net/
Good luck
2006-10-12 23:55:10 · answer #6 · answered by stretch 7 · 0⤊ 0⤋
if you are 1st time home buyer, it is really hard to choose witch mortgage option will be better for you. if you have other debts like student loans, car payment or credit cards- maybe interest only option will be good for you, because if you pay yours other debts, you can always apply extra money towards your principal without refinancing (remember,that in about first 5 years of your mortgage, you pay down only about 1% of your principal per year)
if this doe's not apply to you- i will go with fixed interest, because arms loan are not much lover and it is not even worthy to bother with them. if your loan amount is high, even 0.5% will make difference, but ask your loan officer to tell you the payments with those loans and then decide. if lover payment will make you feel more relaxed, go with it, because like i said before- you can always apply extra money any time you want .
2006-10-13 18:57:56 · answer #7 · answered by bianca 4 · 0⤊ 0⤋
If you are a first time buyer, go to a new build. This is a great starting point for property. I did this, and as a selling point they paid our stamp duty, all our legal fees, put 5% towards our deposit, and sorted out a mortgage broker for us. Try companies like Rialto, George wimpey, Fairview,etc. Good luck
2006-10-12 23:10:15 · answer #8 · answered by siany warny 4 · 1⤊ 0⤋
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2016-10-02 06:20:25 · answer #9 · answered by ? 3 · 0⤊ 0⤋
the reason why they have different mortgages, is to suit different peoples lifestyles and expectations, so it's difficult to say what suits you best.
I went fixed rate with my first mortgage
2006-10-12 23:10:35 · answer #10 · answered by SeabourneFerriesLtd 7 · 0⤊ 0⤋