mortgage repayments

[arlibop]

we are thinking of buying our council flat, it's worth about �150,000. Can any abers tell me roughly how much the monthly mortgage repayments would be on this amount over 25 years. Also can anyone give advice on which sort of mortgage to go for. We know virtually nothing about mortgages! Cheers

[kaztuz]

The best thing for you to do is find a good Independent Financial Adviser that is FSA registered, this will obviously cost money if you take out a policy through them, but personally I think it is well worth it. Our mortgage over 18 years for 100,000 is about �600 but we are on a reduced rate variable mortgage, which means although we pay below the interest base rate of 5.25%, as the interest rate changes so does our repayment, With the uncertainty over interest rate rises in the near future I would now personally go for a fixed rate mortgage as they are usually around the base rate mark and stay that way for a set period of time. Like I said this is just my personal view and would recommend an Independant Adviser any day rather than just go to a bank/building society.

[rja211077]

but as a council buyer, do you not get a huge discount off the market value?

[EverClean]

Rather than an "independent financial adviser" that the last post suggests it would be far more beneficial to see a "whole of market mortgage adviser"

[CovKid]

If you choose interest only, at the end of the mortgage you will still owe as much as you borrowed. If you choose repayment you will pay more per month but at the end you will have payed off the loan. Interest only were popular until the last 8 to 10years. They were linked to endowment policies which allowed you to pay into an investment which was used to pay off the loan at the end. That was OK when the stock market was doing well. Many people ended up in trouble when the market tumbled. Call into a few banks, building societies and ask what it would cost. There are many adverts extolling the virtues of various lenders. All B/S!! If it seems super cheap there is a catch. Some lenders do offer better rates, but there are no miracle deals. Fixed rates seem good at the moment. So good, most were withdrawn a few days ago! (Because rates are almost certain to be going up) Look for early repayment penalties. If you wish to move it could catch you. if you think you could be out of work, consider payment insurance (it isn't cheap).

[CovKid]

This might be useful

http://www.bbc.co.uk/homes/property/mortgageca lculator.shtml

[arlibop]

Thanks for all your advice. Wish we'd bought a few years ago as it looks as though repayments are going to be way over our budget. Unfortunately we live in Bath so even though it's an estate flat still outrageously expensive compared to some other parts of the country. Plus we would have maintenance
charges on top. We do get �50,000 off the price though so we'll have to see what the offer is. Cheers