Post Office Mortgage 5yr fixed

steve_hurst_2

Hi all,

I have just had AiP on there 5yr fixed and I reckon it's a cracker.

4.35%
£599 added to loan
75% LTV

I'm not an expert so your views are greatly appreciated.

Thanks for reading.

Sportbilly_2

I'm going for that one myself as we're likely to be a little over 65% LTV. Had the valuation done yesterday and sent all the legal bumf off so hopefully should get the approval soon.

steve_hurst_2

Sportbilly wrote: »

I'm going for that one myself as we're likely to be a little over 65% LTV. Had the valuation done yesterday and sent all the legal bumf off so hopefully should get the approval soon.

Nice one Sportbilly it's reassuring to see others happy with this product.

Sportbilly_2

1) Our valuers came in and had a look around. There haven't been many recent sales of our type of house, so the bloke said he'd have to consider his valuation back at the office and let us know. I'll post whether it's generous or not when I hear from him, but he mentioned to my wife that 2006 prices were about the norm for our area.

2) My KFI's at home and I'll check it tonight, but I think it was monthly.

Trig1903

We're in the process of applying for this deal as well although it's the 4.15% 5 year we're going for. We applied two weeks ago so hopefully getting there although the survey was only done on Wednesday. The surveyor came in, did some measuring, took some pictures etc so was more than just a drive by. Solicitors were quick off the mark though.

It's definitely monthly interest and you have to be careful how you make overpayments as lump sum overpayments mean a recalculation at the time but regular overpayments are only factored in on an annual basis going by the literature supplied. Still a great looking deal though for 75% ltv.

Kuztardd, I did a bit of digging into the different types of interest and here's my interpretation although I'm happy to be corrected if talking rubbish.

Yearly interest is not great. The interest is recalculated once a year only on the outstanding capital at the time and you do not get the benefit of reduced interest for any reduction in the capital through your regular monthly repayments or any overpayments you make in the year. So basically your capital outstanding remains fixed for a year at a time for the interest calculation irrespective of how much you actually reduce it by.

Monthly interest is better in that the capital sum on which interest is charged reduces on a monthly basis by however much you have paid off through repayments/overpayments.

Daily interest is best in that as soon as any reduction in capital is made then the interest is recalculated the next day.

Sportbilly_2

So I take it you'd be best saving up then making a lump sum repayment once a year? (It's unlikely that we'll be able to make overpayments for the first few years until our youngest starts school, so I didnt' really look at it too closely.)

Trig1903

I don't have the stuff with me just now but I'm sure it says lump sum payments are to be more than £500 and paid by cheque or something like that. I think there's a limit as well in how much you can overpay ie 10% of outstanding balance or something along those lines. I'm not sure if there's a limit on the number of lump sum payments you can make though.


We're kind of the same in that not planning on making overpayments that often although we're reducing our term by a few years instead given we can do so by practically paying the same amount each month as we're used to. Our last fix wasn't the best.

RedPing1977

Kuztardd wrote: »

Oh well, looks like we wont be able to get the mortgage anyway..

Although we have savings, could even supply a guarantor (parents) the failing part is that my partner is on contract/temp work so they wont consider their wage, and my single salary is only a a couple of grand a year less than what they require..
Bum!

How annoying. I feel for you. :mad:

I'm looking at this mortgage myself but I'm self-employed.
Does anyone know if the Post Office have any on regarding lending to self-employed applicants?

I have three years worth of accounts on file.

michaels

AS your partner is ignored could they take out a personal loan so that the amount you need to borrow works with your salary?

Kuztardd wrote: »

Oh well, looks like we wont be able to get the mortgage anyway..

Although we have savings, could even supply a guarantor (parents) the failing part is that my partner is on contract/temp work so they wont consider their wage, and my single salary is only a a couple of grand a year less than what they require..
Bum!

steve_hurst_2

I've had AiP for the 5yr fixed at 4.15% but it I have not had the official approval confirmation yet.

However they've taken my £270 valuation fee out of my account straight away......strange!

toja

Hi, oh my gosh, I just agreed on appointment with Woolwich to make an application, they are offering 4.39% for 3 fix or 4.79% for 5 fix, and now I came across this Post Office deal!!! Shall I proceed with PO and cancel my appointment with Woolwich?
Does anyone know what documents PO requires to provide? The only reason what keeps me with Woolwich is that my salary goes to Barclays and all they ask is 1 payslip and my ID. What about Post Office? Do they offer full structural survey service?