Nice technique. Be sure to check direct only providers as well.
I personally prefer to use MoneySuperMarket and sort by ‘Initial term cost’ as that is the sum of all your payments plus any fees. I also channel the inner geek and like to punch the details into excel and look at the year-on-year outstanding amount, to see what my loan to value will be at the end of the term. The reason I would advise against fixes greater than 5 years is because at the moment rates are ridiculously low. Within a 5 year fix you have a really good chance of reducing the mortgage to better LTV bandings for future fixes.
cheapest of the two with highest capital repayment
The maths on it are certainly interesting and I guess you've already made your mind up but you do also realise that the money you would be using to save up the higher ltv deposit you could over pay on your mortgage? For what it's worth I really think you need to get the 20% price drop out of your mind, I've read numerous articles both from industry insiders and polictal commentators and no one with any sense is suggesting 20% price drops will happen. Again what do I know but that real fantasy land figures. If you just go off brass tax you monthly rent over 2 years is 15.6k. That including your mortgage payments would put you at evens if property prices dropped by 10% over 2 years which is still massively on the high side imo and still doesnt take into account any over payments you would make. If you were being more optimistic and looked at even a 5% drop plus some sort of bounce back you're financially better off to buy now and then in 2 years look to remortgage with a higher ltv
@c58 it was an over simplified example. It also doesn’t account for the difference in interest paid over X time, on a £180k mortgage at 10% compared to £144k mortgage at 10% either. Also the £7,200 going onto the mortgage is quit a big off. When I looked for my first time buyer Mortgage at 3.20% I would only pay on annoyingly tiny amounts compared to the interest paid in the first 2 years. However you did say adjusted for interest but I suspect the real figure paid off the house would be much less For me my mortgage was £980 a month and my rent is £650. I worked out the difference in staying put and interest paid over the time here and they almost balanced each other out. I personal feel it was better for me to save more deposit in the extra wait time to try and get to 75 LTV and get a much preferable rate. Not everyone will be in the same boat of course