FTB needs a mortgage-can you help?

sazzy6

I need to find a good mortgage ASAP. I have used a broker however someone said that they do not always have access to all the deals. Is this true?

The house is £114,000

and I have a £40,000 deposit

Can anyone suggest a good mortgage that they have seen?

I am either looking at a lifetime tracker or fixed rate for a longer term.

:j Really excited and hope someone can help (as I about to borrow a huge amount of money and really want to get it right!)

happybroker

it is true that brokers don't have access to all lenders, HSBC for instance don't allow brokers access to their products. It's also true that some brokers have access to products that other brokers don't, some lenders offer exclusive deals to many of the networks that brokers get access to the market through.

Some deals are cheaper through brokers than direct also just to confuse you further.

Provided you income stacks up and that you have a clear credit profile I think with that deposit you should pretty much have your pick of the market.

Sounds great...good luck

happybroker

oh and by the way....one thing you may not get without pushing for it when going direct to a bank is advice, many work on a non advised basis.

sazzy6

Well I have been really pleased with the broker TBH I was kinda playing devil's advocate in a way. What you have said does add more confussion-it is because it is all so new to me. But thank you as it has given me more to think about.

She has also said I have a large amount of options open to me it is really hard having all these different options to think about. Although I know I really shouldn't be complaining about this! LOL

UK007BullDog

Well you need to make up your mind what you want to do.

Tracker: can go up as well as down, i.e., your monthly payments can go up or down. Would you be able to survive a 1, 2, 3 or more % rate increase?

Fixed: You will know exactly how much you have to pay every month.

I also suggest if you do not plan to move for a long while to fix for at least 3 years or better even 5 years. Because each time you remortgage you have to pay for the product fees, which are going up all the time.

sazzy6

I have looked at a tracker which, at the moment, would mean monthly repayments of £475. I want to pay £550 pm so I would look to over pay by £75 pm.

I have been quoted one from nation wide. Tracking at 0.98 above the BoE.

Also on this mortgage all over payments can still be accessed (not too sure how this works) if I really needed anything.

What do you think?

UK007BullDog

So if the rates were to go up you could handle it? What if your monthly payments morphed to £600 or more per month? Could you still apy that and everything else?

Overpayments, most lenders let you do that. Its not special.

As you are a FTB the most important for you is to make sure you can meet your monthly payments now and in the future. If you are confident you can manage then go for the tracker. But be warned, who knows what will happen with the BoE rates.

sazzy6

I know over payments are common I think it is the access to the overpayment that is more unusual. However I could easily be wrong!

Thanks for your advice, it is always welcomed!

happybroker

sazzy6 wrote: »

I have looked at a tracker which, at the moment, would mean monthly repayments of £475. I want to pay £550 pm so I would look to over pay by £75 pm.

I have been quoted one from nation wide. Tracking at 0.98 above the BoE.

Also on this mortgage all over payments can still be accessed (not too sure how this works) if I really needed anything.

What do you think?

it's a good deal and pretty flexible, below is an excerpt from a Nationwide site to explain how the borrow back facility works;

Your client can make additional payments to their mortgage account whenever they like and benefit in a number of ways:

• save interest straight away - any money overpaid is deducted from the balance the next working day
• pay the mortgage off earlier (if a repayment mortgage). For example, if your client always overpays by £75 a month on a £80,000 repayment mortgage with an original term of 25 years, on our Lifetime Tracker, they could save over £24,000 and pay their mortgage off six years earlier. (Figures correct as at 1 May 2008).
• borrow back the money overpaid at any time »
• reduce monthly payments (underpay) in the future »

Our fixed rate and tracker mortgages have limited flexibility. Your client can overpay by up to £500 per month without charge. If your client overpays by more than this there will be an early repayment charge.

sazzy6

Thanks for that! It has helped me get my head around it a bit more. I think I will be getting this mortgage tomorrow! Unless anyone has any better ideas!