FTB...Advice wanted!

pandamonia

i fail to see the benefit of a grad mortgage. their jobs are no safer than anyone elses. since everyone has a soft degree these days they are almost worthless.

longtimelurker_2

pandamonia wrote: »

i fail to see the benefit of a grad mortgage. their jobs are no safer than anyone elses. since everyone has a soft degree these days they are almost worthless.

True, but not all are soft or worthless.

Anyway, I'd hope most grads would be wise enough to scout round for the best deal and not be seduced by something just because it carries some faux 'prestige' for having grad in the title!

maisymoo77

Pandamonia...I appreciate your comments. However, I do not see the relevance of whether the mortgage is graduate or not. Just because it is named a graduate mortgage it does indicate that our jobs are safer than others....it purely means we hold our student/graduate accounts with HSBC! Comment about our degrees being worthless is also not appreciated. We are both teachers so therefore could not have had our jobs without our degrees.

pandamonia

maisymoo77 wrote: »

Pandamonia...I appreciate your comments. However, I do not see the relevance of whether the mortgage is graduate or not. Just because it is named a graduate mortgage it does indicate that our jobs are safer than others....it purely means we hold our student/graduate accounts with HSBC! Comment about our degrees being worthless is also not appreciated. We are both teachers so therefore could not have had our jobs without our degrees.

i was stating about your 95% LTV mortgage which is considered to risky to be on the market. there are only 2 lenders who do them.

longtimelurker_2

maisymoo77 wrote: »

Pandamonia...I appreciate your comments. However, I do not see the relevance of whether the mortgage is graduate or not. Just because it is named a graduate mortgage it does indicate that our jobs are safer than others....it purely means we hold our student/graduate accounts with HSBC! Comment about our degrees being worthless is also not appreciated. We are both teachers so therefore could not have had our jobs without our degrees.

On that note... being loyal to a bank is rarely to your advantage. Don't forget to shop aroundeven for current accounts (not assuming you don't). We both stopped using HSBC as our primary accounts shortly after graduating and thankfully still getting 6.5% interest in our A&L current account when ours ISAs have dried to very little (thank you Martin )

maisymoo77

longtimelurker wrote: »

On that note... being loyal to a bank is rarely to your advantage. Don't forget to shop aroundeven for current accounts (not assuming you don't). We both stopped using HSBC as our primary accounts shortly after graduating and thankfully still getting 6.5% interest in our A&L current account when ours ISAs have dried to very little (thank you Martin )

We are due to see an IFA later this week so will be sure to weigh up all the options. Ideally I want to save a much larger deposit. I am just concerned that in 12 months time the interest rates could be 10%+. Do you think this could ever happen?

febop

I dont think you should be too surprised about the interest rate the only way you will get less than 6.5% is if you have 15% deposit we went to tons of mortgage brokers and that was the best deal on offer.You'll be surprised at how much you can save whilst your looking aswell we managed to gave 8 grand since November between us

longtimelurker_2

maisymoo77 wrote: »

We are due to see an IFA later this week so will be sure to weigh up all the options. Ideally I want to save a much larger deposit. I am just concerned that in 12 months time the interest rates could be 10%+. Do you think this could ever happen?

I'm no expert (at all!) and I'm probably just another person in the same position as you. We're going to keep saving. Maybe for 2 years, maybe for 3, maybe for 5. We don't know yet - but we know we ain't buying now and we're going to try and do the cleverest thing when we do come round to buying - including making sure we could handle one income and interest rates that could sky-rocket.

The appeal for me is not holding a mortgage (you hold a mortgage, not own a house) but saving enough to get a good rate when we come to it. The interest:capital repayment ratio is just so intolerable for me! I'd rather rent in a place that's beyond what we could buy now and save up for something that will leapfrog it in a few years' time.

maisymoo77

febop wrote: »

I dont think you should be too surprised about the interest rate the only way you will get less than 6.5% is if you have 15% deposit we went to tons of mortgage brokers and that was the best deal on offer.You'll be surprised at how much you can save whilst your looking aswell we managed to gave 8 grand since November between us

We didn't even think we could get a 95% mortgage so the 6.79% rate wasn't really a surprise. We are currently saving between £750-£1000 per month so hoping that we will see our deposit increase steadily (as long as we don't get any nasty surprises). Well done on your saving, thats impressive!

febop

thanks weve never saved before so i was suprised by how much we saved (im a teacher too so no overtime:()We were a bit like you when we started low deposit and worried about what things could go wrong but once we had a mortgage offer and working out worst case senarios (one wage ect)and looked at a few houses it was months later and had a healthier deposit so we decided to bite the bullet and buy somewhere as we plan on it being a home which we can grow into so not looking to sell for a long time (fingers crossed) We probally havnt been completly sensible buying now but we wanted to move out and start a family eventually so we decided it was a risk worth taking