Me and my partner have just been for a mortgage appointment. We was told that for a £100,000 mortgage we would be paying £600 a month excluding insurances. This is over a term of 40 years, but the mortgage broker we saw told us, he will have it paid off for us in 18 years, we just go back every 2 years and he gets us a better deal. Can't understand if this could be possible. The mortgage adviser is highly reccomended in my area. Really don't want to have a mortgage for 40 years, would be nice if he could get it paid for us in 18 years like he told us. Would like any advice about this, is this possible. Don't know what to do. Please help !!!
2007-12-04 09:32:46 · 3 answers · asked by CLR82 2 in Business & Finance ➔ Renting & Real Estate
Go see the broker again ask the broker to explain himself.
When some professional is talking and I get lost, I always stop the person and beg him to speak as if he is speaking to a child around 8 or 9 years old.
And sometime I ask to be explain again and again. Don't be afraid to seem dumb.
It is dumb to get into a deal and not understand it fully.
2007-12-04 10:09:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I'm in the US, so I'm assuming that things aren't all that different where you live.
If you bought your house 2 years ago, and came back today for a better deal, you probably woudn't find it. The rates today are higher than they were 2 years ago, plus the market has dropped so a lot of homes value lower than 2 years ago.
I have no idea is L600 (I don't know where to find that pounds-sign L) is a lot of money to you or a little, but spreading a mortgage out over 40 years suggests to me that the payments are pretty low in the grand scheme of things. Look at an amortization table (the lender should be able to give you one) to see if you can double the principal amount every month, at least in the beginning. You'll be paying less interest in the long run by reducing the principal value every month.
Talk directly to a few lenders, rather than a mortgage broker, if you can. You can probably get as good a deal for yourself and will eliminate the broker's fee. Don't let them run your credit unless you're very interested in what they have to offer. Find out what your scores are first, and make sure there are no errors on the reports.
You will probably have some mortgage for the next 30 to 40 years, but it's not likely to be this one. At some point you will want to refinace. Don't worry too much about that because it's just a regular living expense.
2007-12-04 17:48:25 · answer #2 · answered by Debdeb 7 · 0⤊ 0⤋
Not in England, but every time you go back to refinance you incur costs, and essentially have paid back little in the principle. So in essence you are financing more and more on a home that at least here in the US is not appreciating at the rate it did 5 years ago, thus you are getting farther and farther out of equity. In any country the numbers do not add up, and make no sense
2007-12-04 17:46:32 · answer #3 · answered by Pengy 7 · 0⤊ 0⤋