Follow this topic Q&A » Mortgages

Which mortgage is best for us? I like the sound of the 5% for ten year fixed, or do i?

by Tammy 03 March 2011 |

4 comments | Love

Love 0 loves

My partner and I are ready to buy a house, we have 10% deposit on a house between 170-180k. Our joint earnings are 52k.

We are not keen on a tracker, we are looking for a fixed mortgage and are happy to fix for a longer period of time.

We are first time buyers.

Report

Enjoyed this? Show it some love

Retweet

Comments (4)

Facebook

Twitter

General

Comments (4)

881

MikeGG1 posted
If you can afford the 5% then I would go for it. Rates are expected to rise, but no-one knows by how much or over what time frame. They are very unlikely to get so low again.

10 years should see you over the hump. 5 years might not.

Mike
Posted on 03 March 2011 | Love 1 love Report
881

MikeGG1 posted
On a seperate issue, if you are buying with a partner, buy on a 'Tennants in Common' basis and do a 'Declaration of Trust' which states who gets what proportions in the event that anything happens to you, such as separation or one or both deaths.

Those eventualities might seem remote but we get so many questions here about what happens on a split where no Declaration has been made. It is too late then to do anything about it.

You can include lots of things in the Declaration - even who gets any pets!

Don't forget that as well as it being your home, it will also be your biggest ever investment.

Mike
Posted on 03 March 2011 | Love 1 love Report
134

liesarenocomfort posted
Go for it!

Don't forget you will be exempt from stamp duty as first time buyers, assuming neither of you have owned a property before (this exemption may not last forever).

Make sure you do that declaration of trust Mike mentioned - no-one likes to think about a future separation but it can save an awful lot of grief later.
Posted on 04 March 2011 | Love 1 love Report
61

killick_becki posted
Ten-year fix at 5%, i'd definitely go for it. The long term average interest rate is more than this so adding in the peace of mind i see it as a no-brainer.
The declaration Mike talks about also becomes invalid if you marry and can be easily changed at remortgage if your situation changes.
Posted on 07 March 2011 | Love 1 love Report