6.59% is it too much

amalis

We are thinking about buying our first home. We are both professionals, looking to buy a property at about 300k WITH 10% deposit as first tiem buyers.
We went to a consultation with a mortgage broker who told us that the minimum % he can offer us is 6.59. I am not very familiar with the market, but isnt it too much? What is the average now on 10% deposit fresh mortgage?

happybroker

there is a lower rate than that out there with a building society but the fees are pretty horendous as they charge higher lending fees (nearly £3k alone in your case!!) so you would want to have a think about how much sense that makes.

Lenders, lets face it, don't really want to lend at this level and are pricing themselves out of the market a little at the moment. This means that your question really needs to be to yourself and the answer based around wether or not you feel paying 6.59% to buy a house is worth it.

If you can squeeze another 5% deposit from somewhere (a big ask I know) your range of available ,enders and mortgages would dramatically increase.

All the best with it.

Jonbvn

Being FTB's with only 10% deposit I think you are unlikely to get much better than the rate offered.

Given that you obviously have good incomes, I would suggest save for a while longer to try and achieve 20-25% deposit. In the meantime, houses are likely to fall in value.

koexelek

happybroker wrote: »

Lenders, lets face it, don't really want to lend at this level and are pricing themselves out of the market a little at the moment. This means that your question really needs to be to yourself and the answer based around wether or not you feel paying 6.59% to buy a house is worth it.

the lenders are just playing the game at 90%.
They can be seen to be offering mortgages, but in reality they are not doing.
In my opinion, the only justification for borrowing at those sort of rates would be if you were getting your hands on an absolute baragain at well below the open market value.

woody252506

Check out Natwest.

5 Year fix at 5.99% for First Time Buyers with a 10% deposit.

No fee either!! :cool:

caracal_77

HSBC has some deals for FTB, but only a 2 year fix I believe.

https://www.hsbc.co.uk/1/2/personal/mortgages/first-time-buyer/fixed-rate;jsessionid=0000gXJhFw_qR6Qk9U_LXhtK7Aa:11j5bgs6c

Big_FP

caracal_77 wrote: »

HSBC has some deals for FTB, but only a 2 year fix I believe.

I was just turned down for the two year 90% fix at HSBC. But good luck! As far as I can see, it is the best advertised rate at the moment for a 2 yr fix at 90% LTV.

PS I also saw a broker - last week - who also told me I'd not get better than 6.59%. But something tells me this must be wrong... The Sunday Times at the weekend said best was Clydesdale Bank at 5.99% 90% 3-yr fix. Will ring them now . .. ...

CM66

woody252506 wrote: »

Check out Natwest.

5 Year fix at 5.99% for First Time Buyers with a 10% deposit.

No fee either!! :cool:

Think there is a max lend of £150k on this mortgage?

amalis

Big_FP wrote: »

I was just turned down for the two year 90% fix at HSBC. But good luck! As far as I can see, it is the best advertised rate at the moment for a 2 yr fix at 90% LTV.

PS I also saw a broker - last week - who also told me I'd not get better than 6.59%. But something tells me this must be wrong... The Sunday Times at the weekend said best was Clydesdale Bank at 5.99% 90% 2-yr fix. Will ring them now . .. ...

please if you will get any info from them let us know. :beer:

Big_FP

amalis wrote: »

please if you will get any info from them let us know. :beer:

I rang Clydesdale and the 5.99% 90% LTV 3-yr fix m/g is still available.

A Clydesdale mortgage advisor will ring me back...... next week! It really seems they are not keen to get the business at the moment!!

woody252506

CM66 wrote: »

Think there is a max lend of £150k on this mortgage?

Ahh you are correct! I apologise!

Certainly a superb rate for 5 years IMO if you've got a 10% deposit! :cool: