Revised mortgage

I have spoken to my mortgage broker (Mr. Clipped, since he never wastes words).

I wanted a flexible mortgage so that I could over pay and reduce my interest costs in the longer term. But that attracted the extra charges associated with the high loan to value insurance.

So now I'm going with a "First time buyer" mortgage at a fixed rate for the first 3 years. The interest rate is lower, so my monthly payments are lower, and here's the bizarre bit, the mortgage lender also picks up the tab for the high loan to value insurance. And as long as I don't over pay the mortgage by more than 10%/year in the three years before the mortgage reverse back to "Standard Variable Rate" (SVR) there are no penalties for overpayment!

The likelihood of me overpaying on the mortgage by £30,000/year is negligible, unless I win the lottery. Which is very unlikely as I don't play very often.

Mr. Clipped also discussed a discounted rate mortgage too, but I prefer the certainty of a fixed payment for the next three years.

Obviously at the point at which the mortgage reverts to SVR*, is the point that I renegotiate, and move the mortgage to another lender, or to the current lender's flexible mortgage so I can over and under pay as an when work dictates.

Mr. Clipped has set me details of the suggested mortgage by e-mail, and I'll have a look this evening, and get back to him for tomorrow with my confirmation that I want to take it up.

* Which I think also means "Sucker, Veritably Reamable", as you would have to be a fool to pay this rate!