Which Mortgage Should I Get ?

Date : September 26th, 2009Category : Buy to Let Building InsuranceAuthor : Editor2 Comments

My parents took half of the value of their property (they were mortgage free) so that i could buy my first house. They had Interest only for 2 years, which is now coming to an end. So i own my property outright, but i obviously have to repay them !
The trouble is im sooo confused about the different types of mortgage that are available, what do i need if i own the property outright ? i need to take around 68k out of my property to pay them back, my house is probably only worth approx 75k at the moment (we still have a little work to do on it)
Im sure i want a fixed rate mortgage but im not classed as a first time buyer, or remortgage or buy to let or anything else !
Is equity release the only way ?

Related Posts

Tags : ,

Google Reader Yahoo Facebook Twitter Digg FriendFeed Delicious Google Translate
This entry was posted onSeptember 26th, 2009 at 11:30 pm. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed, but you can Trackback..
«
»

2 Responses

Comments(2)Trackbacks(0)

  1. bluenose

    luck you eh?,well you could look at a fixed rate,repayment mortgage of course,but i’d be tempted to look at a repayment mortgage,that tracks the base lending rate,often called a “tracker”mortgage.there’s not much chance of interest rates going up in the short term,so that’s what i’d go for,if you can afford the repayments of course.also,something i’m guessing your parents may have told you,if you can afford to pay off a bit extra here and there,off your capital,then do so,as it really knocks a bit off your repayment time and interest,remember that typically ,you pay back three time what you borrow over 25 years,shocking isn’t it?,but true,ie,on £30,000 borrowed,around £90,000 paid back over 25 years

    September 27, 2009 12:03 am | #1
  2. fairydus

    You really need to speak to an independent mortgage adviser who will ask you various other questions (incomes etc), and then explain your options. You need to raise a remortgage on an ‘unencumbered property’.
    Based on your figures you will need a 90% mortgage, which is almost impossible in the current market.
    You will probably have to pay your parents interest only payments until the market picks up.
    By the way ‘Equity Release’ is the term normally given to roll up interest mortgages for the over 55’s..
    Please beware of amateur answers

    September 27, 2009 12:28 am | #2