Hi

We are first time buyers and have been told that we can borrow upto £195,000. We will be putting a 10% deposit down and was wondering where the best mortgage deals are? Also, in terms of repayment - ideally we would like to go for fixed rate initially but i'm still not sure whether we should go for a 3 year fixed or tie our selves in for a 5 year fixed? The reason i'm not sure is beacuse the interest rates we have been quoted are above 6.5% and should the interest rates fall in the future then we would still be paying the rate which we took out.

Please help.

Hi

It's a question of affordability at the end of the day - as long as you can afford your payments each month you should be happy.

The mortgage rates are ever changing & i think over the next few months we should see some more competative rates appear.

As usual i would recommend seeing a fees free mortgage broker they will be able to advise you of the best deals out there & help you decide on a 3 or 5 year fix - just remember that mortgage rates go up as well as down - just see how many unhappy people are coming off 2/3 year fixes & are struggling to remortgage & deal with much higher rates.

Good luck

Burger