Posted on 3 October 2012 by Joe Bloggs
My partner and myself are splitting up. She would like me to buy her out for £40.000. The house is currently on the market for £97,000. What is my best mortgage option over 10 years please.
The answer to this question is going to be different for everybody and depends on your answers to the following questions:
What is the priority for your mortgage payments?
a) to pay each month a fixed amount that does not change for a defined period of time, even if there are cheaper variable rates available.
b) a variable payment to benefit from lowest rates, accepting that rates will rise without an upper limit of protection.
c) a variable payment to benefit from low rates, with an upper limit to protect against rate rises.
If your preference is for a variable rate, what is your preferred index?
a) a set margin above Bank Base Rate
b) a set margin above LIBOR
c) a set margin above Lender's SVR
d) No preference
How long would you like your preferential rate to last?
Would you consider an extended tie-in period after the preferential rate expires if it meant a lower initial mortgage rate?
Please rank in order, where applicable, your costing priority?
a) lowest monthly payment irrespective of any associated fees
b) lowest total payable over the initial benefit period including fees
c) lowest total payable over the whole term including fees
Do you have a preference on set-up costs?
a) an arrangement fee that can be added to the loan
b) lowest overall set-up costs
c) a limit to the amount to be spent on the arrangement fee
d) Free valuation and or free legal services
Do you have a specified timescale to meet and why?
You see, it is not possible to say what your best options are without first talking to you and getting know what your objectives are. Please call 0344 346 3672 and talk to one of our independent mortgage advisers. Once you have completed a "factfind", they will be able to help you find the right mortgage for your situation.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.