09-02-2015, 11:54 AM
"Fixed" means that the interest rate and thus monthly payments are fixed for the first x years.
After the fixed term, you'll likely be moved onto a "tracker" mortgage that the monthly repayment will rise and fall depending on the interest rate.
You'll likely find that you'll be limited what you can overpay on a fixed rate mortgage without penalty during the fixed term part of the mortgage, but check the small print as it'll vary between mortgages. On mine I could overpay up to 10% for example.
There will likely be hidden costs - mortgage setup fee and solicitors being two.
Only you can answer the question regarding 2 vs 3 bed - if the 3 bed isn't over-stretching yourself then arguably that's the more future proof, but equally, you need to think about quality of life and affordability if anything were to happen - losing your job and not being able to find anything of the same salary for example. I went 2 bed and things worked out well with employment etc and I was able to repay the mortgage within half a dozen years, but downside is that I now need more space so looking to move.
Hope that helps.
After the fixed term, you'll likely be moved onto a "tracker" mortgage that the monthly repayment will rise and fall depending on the interest rate.
You'll likely find that you'll be limited what you can overpay on a fixed rate mortgage without penalty during the fixed term part of the mortgage, but check the small print as it'll vary between mortgages. On mine I could overpay up to 10% for example.
There will likely be hidden costs - mortgage setup fee and solicitors being two.
Only you can answer the question regarding 2 vs 3 bed - if the 3 bed isn't over-stretching yourself then arguably that's the more future proof, but equally, you need to think about quality of life and affordability if anything were to happen - losing your job and not being able to find anything of the same salary for example. I went 2 bed and things worked out well with employment etc and I was able to repay the mortgage within half a dozen years, but downside is that I now need more space so looking to move.
Hope that helps.
1990 Peugeot 205 GTi 1.9 // 1991 Peugeot 205 GTi 1.9 16v // 1992 Peugeot 205 GTi 1.9 // 1999 Peugeot 306 HDi Estate