Is this a good mortgage ?

gerryd77

Hi All

Would appreciate any feedback on this product from the Yorkshire BS:

Fixed for 2 years at 4.38%

Arrangement fees of £480 (£180 of which must be paid upfront)

£230 for valuation

Want to borrow £75K

Flat is a 'new build' which will be ready mid March and is costing £83,600

I have already paid 5% (£4180) to Barratt and I have another 5% for the mortgage lender.

Does this seem reasonable ? Hope I have given enough info for some feedback.

Thanks in advance

p.s As I have given 5% to Barratt and will give 5% to the lender, and therefore only looking to borrow 90% of the property value, will the lender view this as a 10% deposit and not penalise me with a higher lending rate?

MortgageGenie

Hi,

Don't know your personal circumstances however purely from a product view point it's a very competitive deal. I believe they also have a fees assisted one at higher rate.

Ian_W

So long as the selling price is shown as £83600 then the lender should IMO consider what you're borrowing to be 90%. BTW, unless I'm misunderstanding you somewhere, you don't pay the lender 5%, you pay Barratts a further 5% at exchange and then the 90% from the lender at completion, usually in that order.

Looks a very good deal to me but without going through the calcs on the moneynet/moneyfacts links from the mortgage section of the site I wouldn't know if it was the very best. I'd also have a look at https://www.nationwide.co.uk who's fees are a bit lower but who might not be quite as low on interest rates. Sometimes lower fees/higher interest rates can work out cheaper over the term, particularly where the mortgage isn't a large one. With yours I don't think it will, but worth checking.

HTH & BoL.

gerryd77

Thanks for your thoughts Ian. Will have a look at Nationwide. cheers