What is the best 2yr fixed rate available - I'm confused!

marymak1

I am buying a property for £415,000 and want to borrow £245,000 on an interest only basis. I want to take out a 2 year fixed rate which I can then change after the 2 year tie in period. I want the option of making overpayments of up to 10% per year. I want the deal that results in paying the least amount over the 2 year period after taking account of the interest rate and the fees. I do not have any adverse reason for a lender not to lend to me and I am borrowing well within my means. I would be grateful for any direction/help on what is the best deal.

herbiesjp

Just a couple of questions:

Why interest only? (do you have investments to clear the debt?)
Why only a 2 year fixed rate? (you may be better off going for a longer term fixed rate i.e 5 years)

Anon

The lowest 2 year fix I have seen recently is 2.99% with HSBC (plus fees etc).Anon

dimbo61

If you can afford a £245,000 mortgage interest only and afford to overpay by 10% why not go for a 5 year fixed repayment mortgage as rates are very low at the moment!
HSBC are offering a 5 year fix at 3.99% £999 fee with a max LTV of 60%
Very good deal and allows 20% overpayment a month

daveb975

dimbo61 wrote: »

If you can afford a £245,000 mortgage interest only and afford to overpay by 10% why not go for a 5 year fixed repayment mortgage as rates are very low at the moment!
HSBC are offering a 5 year fix at 3.99% £999 fee with a max LTV of 60%
Very good deal and allows 20% overpayment a month

That is about the best deal out there, but the 60% LTV may cause a problem - £245k on a £415k house is 59%, so what is the betting that HSBC would adjust the valuation downwards by a few thousand to get it onto the higher 4.99% rate?

I think it is hard to best the HSBC 2.99% for a 2 year rate at the moment.

marymak1

Hi guys thanks for your replies - you are stars. I am looking at a 2 year rate as my husband owns a property which he has put on the market for 6 months and hasn't sold it so intends to rent it out. He will look to try and sell it again once lenders start to lend again and hopefully the market picks up. I have endowments that mature in 12 years to pay off the morgage which is why I only want an interest only deal. With the HSBC deal does it allow you to make overpayments?

dimbo61

Yes I think but check with lender BEFORE YOU SIGN !
Only 20% max and needs to be paid each month with the DD !

Mr_E_Man_2

Does anybody know what the best 2 year fixed rate is for a £185000 mortgage on my house worth £310000 to £320000.

The figures shouldn't be too far out as one neighbour sold his for £320000 a week ago and another sold his for £310000 just before Christmas. In summer they were selling for around £350000 but I'm not thinking of moving yet but might in a couple of years.

Thanks

marymak1

Hi Guys - I called HSBC and they said the 2.99% rate is only for re-morgaging. Can anyone advise/help me regarding what the best deal is for a purchase. Thank you.