Getting close to a deal.

biting_the_bullet

As per my thread on the other board, we've been looking at a 3 bed 1920's detached with a loft conversion giving 2 extra bedrooms. The house is absolutely spot on as far as requirements are concerned.

We have been talking to the vendors and i feel fairly confident of them dropping the 259950 asking price to 240000. We have a deposit of 53000 so would need a mortgage in the region of 187000. Because the home would be a long term investment, i'm thinking of locking into a 5 or 10 year fixed rate deal. Also because i feel there is only one way interest rates are heading in this climate.

So, what is there out there at the moment. Been looking at the Nationwide 5 and ten year deals, currently offering 5.18% with a £399 fee. Should i be looking elsewhere if you feel i'm short changing myself?

Thanks in advance

BTB

AndrewSmith

biting_the_bullet wrote:

As per my thread on the other board, we've been looking at a 3 bed 1920's detached with a loft conversion giving 2 extra bedrooms. The house is absolutely spot on as far as requirements are concerned.

We have been talking to the vendors and i feel fairly confident of them dropping the 259950 asking price to 240000. We have a deposit of 53000 so would need a mortgage in the region of 187000. Because the home would be a long term investment, i'm thinking of locking into a 5 or 10 year fixed rate deal. Also because i feel there is only one way interest rates are heading in this climate.

So, what is there out there at the moment. Been looking at the Nationwide 5 and ten year deals, currently offering 5.18% with a £399 fee. Should i be looking elsewhere if you feel i'm short changing myself?

Thanks in advance

BTB

I have just searched for you sourcing all lenders including exclusive deals available via all the major mortgage clubs.

Using the following assumptions:

£240,000 Purchase price
£53,000 Deposit
£187,000 mortgage

repayment basis
25 year term

No adverse credit history etc
5 / 10 year fixed rate requested

Incomes of £41,000 and £4,000 respectively.

The nationwide 5.18 5 year fixed is coming up cheapest.

Northern Rock have a 10 year fixed of 5.19% with fees of £695 arrangement fee and £505 valuation. You would then also be tied to them for the next 10 years.

Having just entered your incomes into the Nationwide affordability calculator, this is what came out:

Affordability

Nationwide would be willing to lend your client up to a maximum of £191,250.00. The minimum term your client could afford to repay this amount over is 16 years.

These amounts are subject to satisfactory income evidence, credit scoring and suitable security.

The short answer is that the Nationwide deal is the cheapest you are likely to get based on the income multiple needed to obtain the required mortgage amount.

Andy

biting_the_bullet

Thanks Andy, appreciated.

AndrewSmith

My pleasure