Mortgage advice please FTB

leedslad2

Had an offer accepted on a house at £87500. Got a 25% deposit in place.

Any recommendations as to what mortgages are out there at the moment that may be suitable?
Looking at a fixed 3 year mortgage at the moment, rates seem to about 4%.
Would like the security of a fixed rate mortgage but open to suggestions.

Pretty new to all this although i have read up about everything, had comparisons and seen a mortgage advisor so please dont think im just being lazy by posting it on here.

All responses appreciated cheers.

yelf

3yr fixed 4% is a very good deal - I'd take it or maybe look for a 5yr fixed.

Thrugelmir

leedslad2 wrote: »

Had an offer accepted on a house at £87500. Got a 25% deposit in place.

Any recommendations as to what mortgages are out there at the moment that may be suitable?
Looking at a fixed 3 year mortgage at the moment, rates seem to about 4%.
Would like the security of a fixed rate mortgage but open to suggestions.

Pretty new to all this although i have read up about everything, had comparisons and seen a mortgage advisor so please dont think im just being lazy by posting it on here.

All responses appreciated cheers.

Take a look at the FSA site. Totally unbiased. Should get you started.

http://www.moneymadeclear.fsa.gov.uk/mortgages

leedslad2

Thanks for the advice.

I have looked on the fsa website and looking at the comparison tables one of the best ones i can see is natwest.

They are offering a 3 year fixed rate at 4.39%, setting up fees are £499.

Does anyone know of any better than this or does this sound ok?

Also would it still be worth seeing a mortgage advisor or should i just go ahead and get this one, i am tempted to just do it as dont think a mortgage advisor will be able to get a better deal.

leedslad2

Come on people surely someone can give their take on this??

geoffky

If it was me i would be fixing for as long as i can now with a rate i was comfortable with..many so called experts reckon rates will rise and rise over the next few years...If i could find a ten year fix that had a decent rate i would go that way but no one knows your wages ect ect

Thrugelmir

leedslad2 wrote: »

Thanks for the advice.

I have looked on the fsa website and looking at the comparison tables one of the best ones i can see is natwest.

They are offering a 3 year fixed rate at 4.39%, setting up fees are £499.

Does anyone know of any better than this or does this sound ok?

Also would it still be worth seeing a mortgage advisor or should i just go ahead and get this one, i am tempted to just do it as dont think a mortgage advisor will be able to get a better deal.

The FSA covers all the main lenders. Its unlikely that a broker will do any better. Thats providing you meet the credit criteria for the loan you wish to apply for.

leedslad2

Right then.

I have narrowed it down to 2 options which i am currently considering.

Natwest 3 yr fixed. Inital rate 4.39% Valuation fee £215 Set up fee £499


Co-op 5 yr fixed. Initial rate 4.99% Valuation fee £255 Set up fee £995


I am pretty undecided as to which to go for so any advice is appreciated. I would like the extra security of the 5 yr fixed but unsure whether it is worth it especially when considering the fairly high set up fee. I can cover this extra cost however, especially if it may be worth it in the long run.

No-one can predict what interest rates are going to do in 3 years time but what is the general consensus? Is it likely that in 3 years i will be able to re-mortgage at similiar rates around today.

Cheers.

sammyjammy

I think you need to be considering other things other than being able to afford the repayments, you need to consider the situation of being able to remortgage if you need to in the 3/5 years time. Even if the market improves a little in the next three years its unlikely it'll improve your LTV a lot which means you'll need to consider the possiblities of wanting to remortgage as well.

Thrugelmir

leedslad2 wrote: »

Right then.

I have narrowed it down to 2 options which i am currently considering.

Natwest 3 yr fixed. Inital rate 4.39% Valuation fee £215 Set up fee £499


Co-op 5 yr fixed. Initial rate 4.99% Valuation fee £255 Set up fee £995


I am pretty undecided as to which to go for so any advice is appreciated. I would like the extra security of the 5 yr fixed but unsure whether it is worth it especially when considering the fairly high set up fee. I can cover this extra cost however, especially if it may be worth it in the long run.

No-one can predict what interest rates are going to do in 3 years time but what is the general consensus? Is it likely that in 3 years i will be able to re-mortgage at similiar rates around today.

Cheers.

Always work on a negative view. Then things will always seem brighter.

Could you afford say a 3% increase in mortgage rates ?

No one can predict the future with regards to interest rates let alone their personal circumstances. View buying a house as a long term committment and you won't go far wrong. As there will ups and downs along the way.