First Time buyer seeking advice

psychecat

Hi,

First time buyer desperately seeking some advice and experience.....
A bit of background.
First time buyer. Offer accepted @ 202000, deposit 20%. Salary 35640.

Went to see a broker, who recommented the following
Abbey 2 yr fix, 4.95%, then SVR (currently 4.24%).

Maybe a silly question but does this sounds an OK deal ?

smcqis

pity you could gety 25% deposit and you would get a better deal

_Andy_

Why would you only want to fix for two years? I'm assuming there's a booking fee?

Batchy

psychecat wrote: »

Hi,

First time buyer desperately seeking some advice and experience.....
A bit of background.
First time buyer. Offer accepted @ 202000, deposit 20%. Salary 35640.

Went to see a broker, who recommented the following
Abbey 2 yr fix, 4.95%, then SVR (currently 4.24%).

Maybe a silly question but does this sounds an OK deal ?

Can't you look to go with someone who offers a lower SVR

mortgage 25 years
fixed rate 2 years

Then Obviously you will be looking to switch... HOWEVER, what would you do if you couldnt switch IE, property prices went down to say 180k, your mortgage value would still be say 158k... leaving you in a 88% LTV ish.

your options would be very limited and likely to be at least 6%... due to the fall in values still interest rates could move up too, being the cause so your SVR could be more like 5.5%

If you went with a company who had a lower SVR (tracker rate) say woolwich of 2.5% then if you had to stick with them, it would be easier to swallow.

personally not sure why people only look at the current fix rate to compare mortgages, I would look at the big picture and a lot of comparison sites do this for you.

Good luck... :-) and well done on saving your deposit.

psychecat

Anyone ever use this Natwest 2 year tracker rate?

2 year tracker 20%（mini deposit）
2.99%(initial rate )
+2.49%(Tracks NatWest Bank Base Rate)
4% (follow on rate)
4.1% APR
£999(product fee)

happybroker

may be a little high on income multiples for Natwest

herbiesjp

Why have you changed from looking at fixed rates to tracker rates?

nico1977

The Natwest deal all depends on your circumstances, outgoings, credit commitments etc and then there affordability calculation. Who do you bank with?

psychecat

happybroker wrote: »

may be a little high on income multiples for Natwest

do you mean I may fail to get it if I borrow 4 times more of my salary?
Maybe should go for a property with lower price.

psychecat

herbiesjp wrote: »

Why have you changed from looking at fixed rates to tracker rates?

still considering which one I should go for...
and which one is more suitable for me.

psychecat

nico1977 wrote: »

The Natwest deal all depends on your circumstances, outgoings, credit commitments etc and then there affordability calculation. Who do you bank with?

I bank with hsbc and natwest. does this affect the application in someway?

However Hsbc said they only can lend me 120k -less than 3 times of my wage. What a result!