FTB Mortgage Advice

kirstyreanne

Hi all,

Me & my partner have just made an offer on our first house. It's a pretty good deal for the area so quite chuffed! Expecting to eventually get it for £75k & we're planning on using £8k as a deposit (we do have more but the property needs updating & we need to keep some cash back for this).

I just wondered if anybody could give their opinion on the best FTB mortgage to go for atm - looking at 5 year fixed rates. So far, preferring HSBC not so much for their rates but because both me & my partner have banked with them all our lives & assume we're more likely to get accepted by them. I have checked our credit rates with Experian & both are good plus we both have stable jobs.

Thanks in advance,

Kirsty.

herbiesjp

Hi Kirsty

There are a handful of other lenders that could look to agree a 90% mortgage for you.

It will all boil down to your credit score with the bank, your income any other debts, credit history and a whole host of other things as to whether HSBC or any other bank will agree the mortgage for you

What are your incomes? DO you have any other debts?

What is the actual rate offered by HSBC?

kirstyreanne

Hi Herbiesjp,

Thanks for your reply.

My partner earns £18800 per year. He also works a lot of overtime & gets a small bonus but we don't wish this to be added. I earn £15495 per year. We have no dependants & minimal other debts - I have £100 on my credit card plus a £20 on a catalogue account & my partner has nothing at the moment.

We've never had any loans & have both checked our credit rating with Experian which showed no problems - I'm unsure as to the actual score though!

Rate currently offered by HSBC is 6.44% & we have a 15% deposit - £12k on a (hopefully) agreed sale price of around £75k.

Think that's all the info you asked for.

Thanks,

herbiesjp

On that basis you could find some slightly cheaper deals.

However whoever you decide to go for, you should not have any problems

What kind of property is it?

Is it an ex-local authority place?
Is is standard construction i.e. brick walls, and tiled roof?

kirstyreanne

Hi Herbiesjp,

It's a mid terrace property. Not ex-authority & I think it's Freehold.

Not very good with period, but as for construction it is an oldish brick property with a slate roof.

TIA

herbiesjp

Well all sounds good to me

Now you just need to decide if you want to go direct to lenders, or if you want to go via a broker to help you with the purchase

firesidemaid

just remember to factor in the fees vs rate over the period of the fixed rate eg. 5 years.

for example a 6.44% rate might cost you £x per month with a £1499 arrangement fee. therefore you must add on £25 per month for the cost of fees to work out the 'true' cost of the mortgage.

good luck x