Mortgage Monthly payments?
We have recently applied for a mortgage of £100,000 which monlthly payments are £693 fixed rate for 3 years. This is based on a 100% mortgage and the fact that we both have bad credit, it does not include building and content insurnace of life cover etc? Is this a good deal anyway?
We think that it is as we have been searching for a mortgage for a few months and due to the adverse credit haven’t been getting a brilliant quote the max we could get before was £85,000 for £625 a month.
I don’t mean to should think, but when taking out separate building and content insurnace etc do you start to do that when you get the completion date? Will the estate agents a house you like is with will accept if you don’t have it yet but you do have your mortgage in place? - hope that bit makes sense!
Tagged with: 3 years • adverse credit • bad credit • completion date • fixed rate • mortgage • place hope
Filed under: mortgage payments
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You don’t say what rate it is fixed at and what it will jump up to in three years.with your credit record be carefull that they are not going to go over the top with the mortgage rate and the time allowed to repay this mortgage.
Fine print????? Read the fine print on the mortgage contract. You are paying 8.3915% annual interest if the entire payment is interest only. How much pays principal? Is the interest rate changeable after 3 years?
If I was in your position I would take the mortgage, there is a lot you can do after you have a mortgage. The mortgagee is locked in and can only take the property if you default. You can do anything you choose as long as the mortgage is paid off. Mortgagee do not want mortgages paid off they want to earn a return on their money all of the time.
With the recent rise in interest rates banks are going to cease their fixed rate mortgages. If you have a relatively good rate anything under or around 8% then its a good deal only take it if you are confident you can afford the repayments. On the insurance side if you take cover through your mortgage company they are a pain to get out of when it come up for renewal. The market is really soft at the moment for general insurance so there are some really good deals out at the moment and a few will do interest free payments which always helps! Hope you ca put this advise to some good use x
Your rate is only about 7.4%, which isn’t too bad for 100% financing, especially if your credit isn’t perfect.
whats important is if you can manage the repayments or not. I have seperate buildings and contents insurance. It is it not essential that u take insurance with your mortgage company.
We have a 75% mortgage which is for £114,500 (as of August ‘06) and this costs us in the region of £605 per month if I remember correctly. It doesn’t sound like a bad deal - however, please do consider the risks very carefully of a 100% mortgage. You could struggle later on. If you do buy like this, make sure that you are happy to stay in that property for a fair amount of time until the property market picks up again if there is a drop that leaves you in negative equity. We aren’t on a big wage - we were lucky enough to have family help with deposits, but we know what a struggle getting a mortgage so I can see why you’re doing it but please be careful. If you are in a situation where you can wait and save for a little longer to get some kind of deposit then I think that’s wise. Especially as you have bad credit. You have to carefully consider if you can maintain all of the monthly payments for your mortgage and your credit (speaking from experience!). Please just think carefully.
The more your percentage of loan, the tougher it will be on you to re-pay. I suggest you go for a smaller house where you don’t feel stretched out too thin.
Your heart has probably been warning you about this heroic deed you are about to plunge into, only to regret earlier than you think.
Just remember one thing, if you’re buying this house just because your wife says, "it feels right", then you are just about a few inches from getting into the entrance of a ‘mouse trap’.
Face it, Man, You think that having a financial burden of maintaining a family is not enough, you want to drown yourself with more burden. Your problems will not go away, no matter what house you buy.
Base line, if you can’t meet your mortgages when you have no job or having a reduced income, then even God won’t save you or your marraige.
Base line, no money, no wife.