Seeking Advice
Hey folks im sorry topost my questions but the problem is I simply cant find the answers im looking for anywhere.
Im a first time buyer I have my deposit, Ive seen a house and I want it. Now I know These kind of questions I could ask my morgage advisor (I dont have one yet) however I feel I wanted to be armed with some knowledge before I go in there.
Now I know Morgages are a big investment however Ive been looking around and these popped up. Ive decided I want to get a fixed term rate (ecomony is so low and is only gonna go up I suspect). Anyhow excuse me if I got my maths wrong .
2 year fixed Nation wide ( I think)
Inital rate, SMR (standard rate), overall comparison, product fee
5.58% 3.99% 4.6% APR £900
So on 50k
2790 1995 2300
So in the first 2 years £232.50p interest only
Halifax
2 year fixed
rate 5.99% SMR 3.50% 4.2% APR £995 fee
Monthly repayments @ £320.30 so 249.58 is interest so £70.72 paid per month = 1,697.28p over 2 years off the morgage however then interest is £140.89
Ok looking at these two examples both are 2 years fixed rate, both have fees. Now ive been doing a little math as you can see and if my math is correct on the Halifax morgage (as it has a how much you pay back each month) I have no idea how £1,700 every 2 years will pay off that £50,000 morgage even over 25 years its well short.
What im looking for is a break down of how it works, because as I understand it if I take a fixed term after the fixed term, I take a new morgage out for the reduced amount and keep going till its gone. SO in the above example my new morgage is going to bed £47,000 after 2 years and say we keep the same interest and such as I work it out ill be paying that for the next 30 years and ill have spent close to £115,000 (I knew interest was crazy but that seems way way way to high.
Thanks in advance for any help.
|
