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Mortgage help, confused!

Last post Wed, Feb 21 2007, 8:54 AM by platinum. 1 replies.
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  •  Wed, Feb 21 2007, 8:54 AM

    Re: Mortgage help, confused!

    1. As you are due to review your mortgage it makes snese to borrow the extra within a mortgage as the rates are cheaper.

    2. Cashback mortgages will tie you in to a lenders standard variable rate for between 5 and 7 years, with interest rates moving upwards and likely to go higher you could regret this decision.

    3. Long term fixed rates are a great idea, however you have to balance against your own lifestyle, 15 years is a long time to plan ahaead and indeed your plans can be wind when life throws you a curve ball and your circumstances change. If you are young and kids havnt happened yet etc then I would go for a shorter term, the longer rates are better for those who have been and done kids, they know that their circumstances are unlikely to change and are just doing the final run to retirement.

    4. NO! It does take time to organise a mortgage and is better to have in place now, if the interest rates change again it is likely the cost of fixed rates etc will rise so is better to get in and secure a rate now. This way you wont have to pay the lenders standard variable rate as you will be able to swop immediately.

    Regards



    Stefan
    • Post Points: 5
  •  Wed, Feb 21 2007, 5:59 AM

    Mortgage help, confused!

    Our tie in period is ending soon with Northern Rock (March 20th 2007) and their rates do not seem to be very competitive at the moment so we are thinking of changing lenders. Northern Rock are telling me that this process is long and costly, but they would say that right?

    Details are.....

    Mortgage is for 74,500
    House value is 210,000
    We want to pay over 16yrs
    We also need some money to finish the house off 15,000.

    Questions

    Which is the best way to borrow this extra money, mortgage or loan?
    What are the set backs of a cash back mortgage?
    Are long term fixed rate mortgages eg 15yr fixed rate a good idea?
    Should I wait until March 20th to change lender or do I start the process now so that I am ready to swap?

    Lots of questions LOL!
    • Post Points: 20