FTB - Which Mortgage?

alanshave

Hi all, thanks in advance for any help.

FTB and have purchased a property which is due for completion in March - 3 bed new build apartment in Scotland.

Purchase price is £114k and I need a mortgage of £85k.

Rather predictably the best deals for me appear to be:

RBS 2 Year Fixed at 3.49% - Fee of £799
RBS 5 Year Fixed at 4.59% - Fee of £299
First Direct Offset Tracker (1.89% above base rate, currently 3.39%) - Fee of £799

At the moment I am close to progressing with the FD deal. 'Crystal Ball' says that rates have to fall further and I don't see it tracking above 4% for at least another 2 years which should be long enough to see the benefits of not fixing. Should I wish to leave and fix a rate elsewhere the fee appears to be £149. Worst case scenario that rates bounce up in a hurry and I should be able to afford 6% without being in bother.

Looking for some opinions on this. Do my assumptions seem logical and forgetting my thoughts, would you come to the same conclusion.

anselld

Wait and see what happens on Thursday when rates might come down 0.5. That will leave FD looking attractive and they should honour any application in progress. I started an FD remortgage in Dec when it was Base+1.49, 599 fee. They have been very efficient as well - first class service.

Sadly enough I have been an RBS customer for nearly 30 years prior to this but no regrets. They were good, but I don't want to have my finances owned by this government!!

alanshave

Shameless bump and another question.

To help me get stuff together - what proof of income will the lender require or will they just contact my employer?

non_believer_2

My lender requested payslips rather than contacting my employer and I would presume that is standard.