Mortgages |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q & A: Help through the mortgage maze By Matt Pitcher
My boyfriend and I are in our twenties and are saving to buy our first home in London. Our salaries, which both have the potential to increase in the near future, are £20,000 and £27,000, and my boyfriend's mum is willing So far, we've saved £20,000, but I'd like to know the best place to put our savings after we've each used our £3,000 cash individual savings account allowance for this year. I'm baffled by all the mortgage options available, so I'd also like to know what's likely to be the best mortgage for us and how much we'll be able to borrow. We're in no immediate rush, but as we currently live with my boyfriend's mum, we would like to move out soon. NB of London Matt Pitcher answers There are some key points to bear in mind when selecting savings accounts. The first is that the more frequently the interest is credited the better the total return will be. It's also worth considering instant access accounts so that your money can be moved quickly without loss of interest. One is Icesave, a new account from Icelandic bank Landsbanki, which offers an excellent rate of 5.45% a year (gross) and is guaranteed to exceed the bank base rate by 0.25% until October 2009. Interest is paid monthly and you have instant access to the account. Check other best deals With your joint income and deposit you should be able to borrow up to £199,000 as a mortgage. Using your parents as guarantors would only benefit you if your parents' income is higher than your own, as the mortgage would be based on their income. For your first mortgage it might be wise to opt for a fixed rate so you know what your monthly outgoings are going to be. Either way, the best form of mortgage to go for is a repayment mortgage, because this guarantees that you will pay off the debt on your home, unlike interest-only loans. Check for best mortgage deals Matt Pitcher IFA at Towry Law in Bracknell advises on all areas of financial planning
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Send Article by Email