Is it really a Minefield??

SpeedSouth

Meeper wrote: »

I can probably list about 20 other criteria which are important to factor in to decisions about which mortgage is "the best", so using a suitably qualified and experienced adviser is often an excellent idea even if you think your situation is straightforward.

What else would you suggest I consider first? I don't consider myself a fool in these matters but would welcome advise if there is something else I may not have seen or thought about. Cheers

justme111

why not first direct or HSBC ? their rates are lower as far as I remember and they don't have any tie-ins either

SpeedSouth

First direct needs a 65% LTV (which I may be able to achieve depending on what is accepted), HSBC needs 70% and is 2.49%. N/W is currently 2.75. As a N/W customer I believe I stand the best chance of securing a mortgage with them as others have pointed out I am at the limit of what I can borrow based on my salary. (And have the benefit ot the freebies, survey costs and conveyancing costs)

One question though if I get an AIP, this I assume is with that lender. If the asking price was reduced by £20k I would be in the realms of 60% rates then so could look to re-assess with other companies.

justme111

doesnt fd have 75% at 2,39?
I thought hsbc 70% was 1,99 above the br.

SpeedSouth

justme111 wrote: »

doesnt fd have 75% at 2,39?
I thought hsbc 70% was 1,99 above the br.

FD is at 2.89% according to their site, and yeah HSBC is 1.99% above base rate so 2.49%.

N/W is 2.25 above base so 2.75%, but with the cashback as it were.

justme111

as in your first post you said " 2,75 above" I thought yours was 2,75 above BR.

Meeper

adam81 wrote: »

What else would you suggest I consider first? I don't consider myself a fool in these matters but would welcome advise if there is something else I may not have seen or thought about. Cheers

In finding the "best" product (which is to say the most appropriate for your individual circumstances), you would need to consider all of the following stuff, and more:

• Can I afford the monthly payments?
• Can I afford the payments if rates increase by 1%?
• Can I afford the payments if rates increase by 2%?
• Can I afford the payments if rates increase by 3%?
• What are the fees involved?
• Are the fees up-front, added to the loan or deducted from the loan?
• Can I make overpayments to the mortgage?
• What is the limit to being able to overpay without incurring a charge?
• If I have overpaid, can I borrow back or underpay later?
• What does the rate revert to at the end of any special initial period?
• Does the tie-in period end at the same time as the initial rate?
• If I wanted to move house, is the mortgage portable?
• If it is portable, could I borrow more at the same time as porting if I wanted to up-size?
• What restrictions are there around porting the mortgage elsewhere?
• Am I old enough to get the mortgage with this particular lender?
• What are the lenders' restrictions on the age that you cannot exceed at the end of the mortgage term?
• Will the lender even give me as much as I want based on my income?
• Does the lender only take basic pay into account?
• Does the lender take bonuses into account? If they do, will they count 100% of my bonus, or only 50%, 25% or 10%?
• Does the lender take my Car Allowance into account?
• Will the lender consider any state benefits that I may receive?
• Will the lender take my credit cards into account? If so, do they take the full balances and deduct that amount from my income or do they take 5% of the balance off my monthly net pay? Or 3%?
• Do they take loans into account? If so, do they annualise the payments and deduct that amount from my income before calculation, or some other method of taking it into account?
• Can I have the mortgage on an interest-only basis?
• If I want to change from interest-only to repayment in the future, is this possible and what are the restrictions or charges?
• Can I change from repayment to interest-only in the future?
• Do I have a large amount of savings?
• Would I benefit from being able to offset these against the mortgage balance?

So, although a lot of those points will be covered off with "Yes, next!", such as "Am I old enough?", they still need consideration. A good adviser will take all of this into account in deciding what is "the best" product. It is never as simple as getting the best rate.

SpeedSouth

justme111 wrote: »

as in your first post you said " 2,75 above" I thought yours was 2,75 above BR.

Yeah sorry saw that...

Thanks Meeper for all of that. Certainly a couple I'd not considered.