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FTB with Interest Rate Q.
Guitario
Posts: 11 Forumite
Hi all.
Been reading for a while, but this is my first post
.
All advice greatfully received!
Situ: Me and Wifey are FTB's and have saved a 10% deposit. We made a cheeky offer on 2yr old 4 bed detached that has been accepted (the property is owned by a national building company under a part ex).
Sold for 189k 2 years ago, we offered 133k and it's been accepted:beer:
I think most would see that as a good deal?
Now the mortgage bit, the only option that seems to be available with our rather measley 10% are some fixed rate deals (3&5yrs), but with interest rates forecast to come down by a decent amount, is there anyway of having my cake and eating it? Great price on the property and enjoy the rate cuts?
Thanks for reading!
Been reading for a while, but this is my first post
.All advice greatfully received!
Situ: Me and Wifey are FTB's and have saved a 10% deposit. We made a cheeky offer on 2yr old 4 bed detached that has been accepted (the property is owned by a national building company under a part ex).
Sold for 189k 2 years ago, we offered 133k
and it's been accepted:beer:I think most would see that as a good deal?
Now the mortgage bit, the only option that seems to be available with our rather measley 10% are some fixed rate deals (3&5yrs), but with interest rates forecast to come down by a decent amount, is there anyway of having my cake and eating it? Great price on the property and enjoy the rate cuts?
Thanks for reading!
0
Comments
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Hi all.
Been reading for a while, but this is my first post.
All advice greatfully received!
Situ: Me and Wifey are FTB's and have saved a 10% deposit. We made a cheeky offer on 2yr old 4 bed detached that has been accepted (the property is owned by a national building company under a part ex).
Sold for 189k 2 years ago, we offered 133k and it's been accepted:beer:
I think most would see that as a good deal?
Now the mortgage bit, the only option that seems to be available with our rather measley 10% are some fixed rate deals (3&5yrs), but with interest rates forecast to come down by a decent amount, is there anyway of having my cake and eating it? Great price on the property and enjoy the rate cuts?
Thanks for reading!
Get a BOE BR Tracker. I would at the moment get it on 2, 3, 5 or life time deal.
Check which banks do 90%LTV though.
I have done a life time tracker myself.0 -
It depends what you feel you can handle
fixed rate gives you the piece of mind of knowing exactly what your paying out (yes rates are coming down but they will go up again at some point)
anything else I guess makes you keep your eye on what is happening with the rates (which isn't a bad thing) but it could give you the added worry if they do rise againIf you find yourself in a fair fight, then you have failed to plan properly
I've only ever been wrong once! and that was when I thought I was wrong but I was right0 -
It depends what you feel you can handle
fixed rate gives you the piece of mind of knowing exactly what your paying out (yes rates are coming down but they will go up again at some point)
anything else I guess makes you keep your eye on what is happening with the rates (which isn't a bad thing) but it could give you the added worry if they do rise again
A Fixed rate will give him peace of mind but
a) they are over priced at the moment because of libor
b) I dont think any one can see rate increases over the next year and most probably be lower than they are now in 2 years time.
If he wants to take advantage of rate drops the only way of making sure they are passed on is with a BOE BR Tracker.
Make sure the tracker tracks BOE BR not the lenders own base rate.;)0 -
Quick check on http://www.moneysupermarket.com/mortgages/ shows a First Direct tracker mortgage at 5.49% with a £399 arrangement fee.
Didn't go further into the details but you should as Realy says, check that it is linked to the BOR BR
Also, check with MSE's own web pages at http://www.moneysavingexpert.com/mortgages/:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
If you're going for a tracker mortgage, check in the T&Cs to see what is being tracked as usually it's the bank's own base rate not the BoE base rate. Don't accept, "But they're always the same" as an answer as if they're always the same, why have 2 different things?
Also check to see if there is a floor to the interest rate you are charged.
Personally, I'd take a long term fix (say 10 years) with as small a redemption fee as possible. If interest rates collapse you can remortgage to another long term fix, if they rise you are fine and if they stay the same, who cares.0 -
If you're going for a tracker mortgage, check in the T&Cs to see what is being tracked as usually it's the bank's own base rate not the BoE base rate. Don't accept, "But they're always the same" as an answer as if they're always the same, why have 2 different things?
Also check to see if there is a floor to the interest rate you are charged.
Personally, I'd take a long term fix (say 10 years) with as small a redemption fee as possible. If interest rates collapse you can remortgage to another long term fix, if they rise you are fine and if they stay the same, who cares.
exactly what i'm going to do when I buy.....I'd rather have piece of mind than being one of the poor sods sat up at night now worrying to death what is happening to interest rates and whether I will get remortgaged because their now in NE.
Yes i pay a little more than someone on a tracker but boy i bet the piece of mind is niceIf you find yourself in a fair fight, then you have failed to plan properly
I've only ever been wrong once! and that was when I thought I was wrong but I was right0 -
IveSeenTheLight wrote: »Quick check on http://www.moneysupermarket.com/mortgages/ shows a First Direct tracker mortgage at 5.49% with a £399 arrangement fee.
Didn't go further into the details but you should as Realy says, check that it is linked to the BOR BR
Also, check with MSE's own web pages at http://www.moneysavingexpert.com/mortgages/
I must admit I have been impressed with First direct.0 -
A fall in interest rates wont make a difference to most mortgages out there - all the banks will do is punish the savers and pocket the difference0
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exactly what i'm going to do when I buy.....I'd rather have piece of mind than being one of the poor sods sat up at night now worrying to death what is happening to interest rates and whether can will get remortgaged because their now in NE.
Yes i pay a little more than someone on a tracker but boy i bet the piece of mind is nice
To tell you the truth they all work out prety much the same (taking in to account fees etc) I think historicaly around 5.5%.
My idea is to take advantage of low rates and the money I save going into the offset.0 -
Hard to say on the 'good deal' front. It looks pretty good, but when you say "two year old", was it a new build when it sold for that price? If so, do you know if the original purchaser actually paid that, or was there a 'gifted deposit' and other incentives? Have any similar properties resold since?
Still, it's a 56k better deal than paying the previous price, clearly!Hurrah, now I have more thankings than postings, cheers everyone!0
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