Mortgage Question For Mortgage Man & Payless

helenncurtis

Hi,

Myself and my boyfriend have just had an offer accepted on a new flat and are about to sign off our Mortgage. Before we complete our Mortgage applicant, we would like to know if you know of any better deals with any mortgage lenders?

My boyfriend has just started a new job and is on the standard 6 month probation which we have been told comes across as an obstacle when getting 100% first time buyers mortgages, even though it's a progression in his salary by some margin.

We've been offered the below 100% £149,995.00 Mortgage with HSBC at 5.9% APR. The below details are for a Homestart mortgage, though we would prefer to take the Capital Repayment option, though we're not sure if we can afford it as the Insurance payments seem extremely high

Can you please take a look at the below quote and let me know if you think their are better deals out there? Or should we just go for the Mortgage and move it later?

Mortgage Required: £149995.00

Type: Homestart

Term Of Loan: 25 Years (300 monthly payments)

Interest Rate: 5.49% (Home Buyer Mortgage fixed rate until 30
November 2006 Then Interest will be charged at the variable rate for the remainder of the loan)

The Annual Percentage Rate (APR) is 5.9% Variable

Loan Payments: £686.85

Life Policy Premiums: £115.76

Income Payment Protection Premiums: £68.31 (Mortgage Protection) -
Payable from month 13 - Half Price cover for first 12 months

Income Protection Premiums: £66.96

Indicative Home Cover Premiums: £12.49

Total Monthly Cost: £950.37

Alternatively the Capital Repayments Mortgage fixed at 5.49% APR totals in at a Monthly Cost of £1289.92 including the above Protections etc.

Thanks In Advance

payless

100% with a probation are not the easiest to get and
can't comment if a 2 yr fixed deal is best suited or a 100% is suitable
BUT whilst the rate is not comeptive as a 2 yr fixed generally it is competitive in the 100% market

Ae they charging a "higher advance fee " (aka indemnity premuim / MIG) is their a (extended) tie to the lender ?

HSBC do seem prepared to help FTB/ 100%

whilst the mortgage looks competitive ( if it suits your needs) I might question whether the extras are the best

Life Policy Premiums: £115.76
 
Income Payment Protection Premiums: £68.31 (Mortgage Protection) -  
Payable from month 13  - Half Price cover for first 12 months
 
Income Protection Premiums: £66.96
 
Indicative Home Cover Premiums: £12.49

certainly looks a like the "Full monty" - can you afford / need/ want  all of these
- if so are they available cheaper elsewhere

herbiesjp

Hi there

I thought I'd add a little info.

All I can do is agree with Payless on this one, as to the suitability of the scheme as one would need to tailor advice for your specific circumstances, affordability and attitude to risk.

I used to work for HSBC and can see that their sales techniquies have not changed either (one of my reason for leaving a lonfg time ago).   They have packaged the whole sale to you and probaly not allowed you, or mentioned your ablity to look elsewhere for cheaper premiums on all those other insurances.

I'm going back a bit, but HSBC Life did not offer premiums that were too competitve, but again cannot really comment or advise without knowing your circumstances.

Hope this helps a little. If you need any other info , post away.


Almost forgot to say that there are some lenders that will offer better rates, but it depends on whether they class your occupation as "professional".  Some other lenders will also give you these rates if you have graduated "recently" (some will go back 7 years).

Let us know if you looked at these options and what you came up with.