can anyone recommend a lender?

gazza975526570

Im making some tentative steps towards making an offer on a property and trying to work out what mortgage i can afford whilst maintaining some kind of existence!!!

Im looking to borrow around 113,000 on a £145000 purchase and looking for a long(ish) fixed term deal. To get an idea of approximate costings any suggestions on which lenders to look at?

both mine and the mrs credit ratings are good and the amount borrowed wouldnt be a problem

KTF

I would contact a broker as they will search the market and find suitable deals for you. They have access to products that individuals dont as well.

gazza975526570

ive just checked through my employer i can get a 5 year fixed rate of 4.59 - are there any deals out there to beat this?

in respect of going to a broker im likely to do that but just after some basic views

KTF

Thats not bad for a 5 year fixed. Who is that through and what are the fees on it?

gazza975526570

its through the bank i work for - there are no arrangement fees

Ian_W

I don't think you'll beat that rate, particularly w/o fees, on a 5 year fixed. They all seem to be a tad above 5% now. Do get a broker to do a search, but it sounds like a good perk of working for the bank.

AndrewSmith

The only open market product that would come close to that is Britannia 5.09% fixed 5 years.

Take your employer's product if it's available to you, however you need to discuss with your HR dept whether there are any tax implications involved with the rate reduction as these are sometimes seen as a 'benefit in kind'. Also what are the conditions should you choose to leave their employment within the 5 year fixed period? Do they increase the rate or impose a penalty on you?

Excellent rate though, just make sure that it is not a pair of 'golden handcuffs'.

Andy

gazza975526570

Thanks Andy - appreciated.

There is an additional tax implication with the rate below the 5% set by the IR. Ive asked via the tax board who forevast the extra tax to be between £70-£130 dependent upon my earnings for the year so this would be made up easily on that rate.
I need to find out from them what rates it would revert to if i leave - im hopefull it wouldnt go straight to the SVR and i think you get so long to find a new deal. The alternative is a 2 year discounted rate which puts it at 3.99% again with no arrangement fees, HLC etc.

Can i ask as ive never understood - i as always under the impression that at the start of a mortgage you pay more interest than money off the mortgage. Therefore say you always went for shortish deals then changed (ie 2-3 yr deals) would it take you longer to pay off your mortgage than staying with the same deal?!

Robert_Sterling

gazza975526570 wrote:

Thanks Andy - appreciated.
Can i ask as ive never understood - i as always under the impression that at the start of a mortgage you pay more interest than money off the mortgage. Therefore say you always went for shortish deals then changed (ie 2-3 yr deals) would it take you longer to pay off your mortgage than staying with the same deal?!

The short answer is No

There is a longer answer which is also No

gazza975526570

Any reason why you cant keep your font "short" Robert or do you feel the need to stand out?

No need etc.