Hi there, just joined the forum so hello!
To be short and sweet i'm really confused about this whole mortgage thing, i may be looking to buy and from what i can see it is just glorified renting with a huge desposit.
My main question is though with interest and what you actually pay back. For example:
100,000k property though HSBC calculator picking the same mortgage over
30 years one with:
25,000 deposit, one with 50,000
25k
2 Year Fixed Special 90% 3.64% 3.94% 4.0% APR £999
£343pm
£123,480 total (343*360)
£148,480 (total + deposit)
50k
2 Year Fixed Special 90% 3.64% 3.94% 4.0% APR £999
£228pm
£82,080 total (228*360)
£132,080 (total + deposit)
So as i'd expect you pay less with more of a desposit over the course of the 30 years but when you add your original desposit back on the difference is pityful...
Why would you bother in this case putting down 25k more when you only seem to save £16k... surely your better off keeing the 25k in the bank for 30 years gaining interest and taking the mortgage out on the 25k...?
I'm pretty sure i must be missing a vital number here or i'm not understanding something? All the advise online appears to be geared towards short term advise and i'm more of a long term thinker.
cheers
wow, became longer than i expected! apologies the whole mortgage thing is a bit odd.
To be short and sweet i'm really confused about this whole mortgage thing, i may be looking to buy and from what i can see it is just glorified renting with a huge desposit.
My main question is though with interest and what you actually pay back. For example:
100,000k property though HSBC calculator picking the same mortgage over
30 years one with:
25,000 deposit, one with 50,000
25k
2 Year Fixed Special 90% 3.64% 3.94% 4.0% APR £999
£343pm
£123,480 total (343*360)
£148,480 (total + deposit)
50k
2 Year Fixed Special 90% 3.64% 3.94% 4.0% APR £999
£228pm
£82,080 total (228*360)
£132,080 (total + deposit)
So as i'd expect you pay less with more of a desposit over the course of the 30 years but when you add your original desposit back on the difference is pityful...
Why would you bother in this case putting down 25k more when you only seem to save £16k... surely your better off keeing the 25k in the bank for 30 years gaining interest and taking the mortgage out on the 25k...?
I'm pretty sure i must be missing a vital number here or i'm not understanding something? All the advise online appears to be geared towards short term advise and i'm more of a long term thinker.
cheers
wow, became longer than i expected! apologies the whole mortgage thing is a bit odd.