Mortgage for a FTB

tododo

Hi all

We are a FTB couple who have just had an offer accepted on a home (which is lying empty) at £155000. Originally the price was £170000 and then recently £165000. We originally put a bid in at £152500 but that was rejected.......now after a bit of haggling £155000 has been accepted. OMG!!

We have £40000 deposit, possibly if the parents help £50000, we want to put most of the money into the mortgage and any work the house needs we will save up for......its very livable for the time being

I am earning 18K and the girlfriend 27K. I dont think my job is very secure, however I have been saying this for 5 years and I am still there so who knows
We have no debts at all.

Now we really have to sort a mortgage out, we called London and County two days ago for advice who said that they would call back but no luck.....this now has put me off using L&C as it seems they are unreliable.

We have been frantically seraching around looking for a decent mortgage. Chatting online to halifax and also on various phone lines.
Ideally we probably want a fixed rate mortgage for 2 or the more appealing 3 years.

About 3 months ago we did have a mortgage advisor give us some mortgages in principle. However he did have a £500 fee so we just took the advice and decided not to go with him afterall. Anyway he recommened one of the Bank of Scotland mortgages.
I have also been doing some research on charcoalonline and there is a pretty good fixed rate that RBS do.......

ie. 4.55% fixed for 37 months, 6.39% after the 3 year period, £400 fees

What we dont really understand is what happens say after the 3 year fixed period. Say we want to switch to another company offering a lower fixed rate. Correct me if Im wrong is it then that the early repayment charges come into force as the new bank pays off the old bank in full

In the above example of RBS they say they have early repayment charges of 4% of the sum repaid until 30/06/09

Can anybody help us figure this bit out or offer any other recommendations on mortgages

I am also trying to get in contact with a broker in our area asap also

Thanks

herbiesjp

tododo wrote:

Hi all


About 3 months ago we did have a mortgage advisor give us some mortgages in principle. However he did have a £500 fee so we just took the advice and decided not to go with him afterall. Anyway he recommened one of the Bank of Scotland mortgages.
I have also been doing some research on charcoalonline and there is a pretty good fixed rate that RBS do.......

ie. 4.55% fixed for 37 months, 6.39% after the 3 year period, £400 fees

What we dont really understand is what happens say after the 3 year fixed period. Say we want to switch to another company offering a lower fixed rate. Correct me if Im wrong is it then that the early repayment charges come into force as the new bank pays off the old bank in full

In the above example of RBS they say they have early repayment charges of 4% of the sum repaid until 30/06/09

Can anybody help us figure this bit out or offer any other recommendations on mortgages

I am also trying to get in contact with a broker in our area asap also

Thanks

It sounds like you still need help to understand the whole mortgage process.
Why not find a fee free broker who can help if you do not want to pay a fee.

In answer to teh above question, the ERCs are only payable up until the end date you quote. After this date, you will have no penalties to pay off the mortgage but you will incur closing/exit/deeds release fees (whichever may be applicable)

tododo

Thats what we didnt understand, thanks for clearing that up

MortgageMamma

The deal you are talking about is a good deal and RBS are excellent with FTB's. but there may well be better out there for you. Like Herbie I would recommend you find a fee's free broker, who can search the whole of the mortgage market for you, to make sure you get yourself on a good deal. Well done in haggling the house down, you've done a great job! And don't worry about how the lender percieves the security of your job, some will lend after you have only been there a month.