First time buyer 5year fixed - 5.99% can I do better?

A_little_stressed!!

I've had an offer accepted on a flat, got myself a great price in a decent area £70,000.

I want a fixed rate as my wages aren't expected to go up much for the time being and I need to know whats coming out. As I'm looking to live there 5 years, then get a house I've been looking for 5year fixed.

The deal I have found is Natwest first time buyer at 5.99%, fixed for 5years, and no set up fees. (£215 valuation)

I have £13k deposit and earn £15k, plus £5k tax credits.

Is there better out there, taking into account set up fees will lower my deposit £800.

Many thanks LOVELY MSE'rs :beer:

Israfel

Hi Stressed, In a similar boat and have been looking around too. You should check out the halifax ftb range including the discount mortgage (although that costs 1199 setup). Also check out Furness BS and Newbury BS as they appear to have descent deals too. My colleague here at work found Clydesdale very good setting up his mortgage which sounds like a very similar deal. SO I guess take a look at those and see if any suit you better. Good luck

herbiesjp

Slightly confused

YOu say only fee is £215, but then say fees reduce your deposit by £800

There may be some that are cheaper, rate may be the same but could save on the fees

However you would need to speak to a true whole of market adviser, who may charge a small fee for the research, as it will be likely that you will have to go direct

Israfel

herbiesjp wrote: »

Slightly confused

YOu say only fee is £215, but then say fees reduce your deposit by £800

There may be some that are cheaper, rate may be the same but could save on the fees

However you would need to speak to a true whole of market adviser, who may charge a small fee for the research, as it will be likely that you will have to go direct

They said that natwest had a 215 valuation fee but no setup fee, then asked what other options were out there considering they'd have to take the setup fee of such mortgage (ie. 800) off the deposit if there was one. Can I ask you as a mortgage advisor what 90% LTV mortgage deals you think are halfway decent at the moment?

A_little_stressed!!

Israfel has got it, the Natwest has no set up fees (which as I've looked around are normally £600 - £1000) which will chip into my deposit. Natwest does have a valuation cost of £215.

If I found a mortgage of 5.89% but £899 fees, the the 5.99% no fees is actually cheaper! (over 5years)

A_little_stressed!!

Leeds building society has a 5.75%, but booking fee is £200, completion fee £800, £230 for valuation, which will reduce my deposit by £1015 (compared to Natwest) or if I add to mortgage another £1015 I have to pay 5.75% interest on!

Israfel

I'm going along the same thinking as you Stressed, the fees are high, sometimes you can add them to the mortgage though. I've been playing with the idea of (assuming they'd give me a mortgage) taking out their 2 year tracker mortgage (for people with 10% deposit) to start which is 4.19% above base rate making it 4.69% right now, it has no fees, limited overpayments allowed and the option to switch to fixed after 3 months so if you could keep on top of it and watch the rates it could work out a lot cheaper, then switch to a fixed rate if the base rate increases. You are taking a risk on their fixed rate not sky rocketing at the same time though. Might be an option to keep interest repayments as low as possible at the start.

Don't know what others possibly more in the know think of this idea?