Deposits up to 15%!

Sagar_Fuzz

We've just been told by our mortgage broker that we need a 15% deposit for most mortgages now - last week it was 10%!

Does anyone now if a decent 10% fixed rate is still out there?

First time buyer!

gastroboy

I think its going tits up for us with 10% deposit. Take a read of the article below if you haven't see it already.

http://www.guardian.co.uk/money/2008/oct/26/mortgage-lenders-charges-base-rate

HSBC just raised their base rate tracker to 1.69% above base! for 10%. Article says that First Direct is still at 0.99% above base and C&G have a decent rate....

herbiesjp

There are still 90% deals around

It just depends on whether you fit the criteria of those particular lenders

Sagar_Fuzz

herbiesjp wrote: »

There are still 90% deals around

It just depends on whether you fit the criteria of those particular lenders

Care to name any? We wanted to go through our mortgage broker, but this is putting us off if we can get a better deal elsewhere.

The only one he can find at 10% is a five year fixed rate...

beecher

Sagar_Fuzz wrote: »

Care to name any? We wanted to go through our mortgage broker, but this is putting us off if we can get a better deal elsewhere.

The only one he can find at 10% is a five year fixed rate...

What length of deal are you looking for and what puts you off a five year deal?

herbiesjp

Sagar_Fuzz wrote: »

Care to name any? We wanted to go through our mortgage broker, but this is putting us off if we can get a better deal elsewhere.

What mortgage amount are you looking for?
What lender and rate have you been offered?

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

Sagar_Fuzz

herbiesjp wrote: »

What mortgage amount are you looking for?
What lender and rate have you been offered?

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

We are looking for a mortgage for £144,000

Our advisor sent us this:
"3yr fixed - 90%

Nottingham at 7.69% fixed until 01/01/2011 (approx 3yrs)

Arrangement fee - £0

Higher lending charge - £1424.45 - addable

Basic valuation - free

Monthly cost for the first 3 years would be £1079.04 (without the higher lending charge added).

or

3yr Fixed - 85%

Nationwide 6.59% fixed for 3yrs from completion

Booking fee - £299 - addable

Basic valuation - £340

Monthly cost for the first 3 years would be £928.87 (without the booking fee added)."

He said it was the best 10% he could find.

We have no debts except about £4k in Student Loans. I pay of my small credit card bill every month.

Our joint income is £57K

Sagar_Fuzz

beecher wrote: »

What length of deal are you looking for and what puts you off a five year deal?

We were looking for three years fixed - five years seems a long time in the financial market right now.

It is starting to be tempting to go for a tracker, but couldn't interest rates soar on a recession?

I just don't know what to do.

beecher

Sagar_Fuzz wrote: »

We were looking for three years fixed - five years seems a long time in the financial market right now.

It is starting to be tempting to go for a tracker, but couldn't interest rates soar on a recession?

I just don't know what to do.

I'd be tempted to get a 5 year fix if possible as I would be worried about being in negative equity in 3 years time. It also saves you from having to pay more fees.

A tracker is a gamble as who knows what'll happen in the next few months let alone years. It all depends on your attitude to risk really, and how you'd feel if you end up paying more. I've fixed for 5 years because I want to know how much I'm paying, and because it suits me - only you can decide what is best for you. Personally I'd be ditching the idea of buying now, and would save up a bigger deposit.

herbiesjp

Well you can definitely get better than the Nottingham deal

Starting around mid 6%s with no higher lending charge

Sagar_Fuzz

herbiesjp wrote: »

Well you can definitely get better than the Nottingham deal

Starting around mid 6%s with no higher lending charge

Would these be deals mortgage brokers can't offer? Otherwise why hasn't he found it?!