FTB, Large Deposit, Total Newb, Lot's of Questions!

Wh05apk

Yep, I was only looking at the last few posts, in which £200k keeps getting mentioned. if basic £40k, realistically a little over £200k is max, depending on how long bonus's/comm. has been received.

SilverSix

efunc wrote: »

Thanks all for some very helpful replies. In the space of one evening I'm now in the midst of a U-turn and strongly favouring a tracker like the Nationwide one mentioned above. Unlimited overpayments sounds ideal! Benny, how did you come by this particular mortgage? Through your own research or via a broker? Did you consider any other equally attractive ones you might recommend?

Through my own research. I used moneysupermarket to see what was available initially. I bank with nationwide as it is so was my first port of call. I then decided to look elsewhere and I think HSBC came in second in terms of rate but I can't recall on the flexability or ERC's.

Nationwide also do a 3 year fix at 4.2%, product fee of £400 + valuation of £400 odd. Can overpay upto £500 with no charge per month. Anything over £500 the whole amount is charged at 5% so it'd cost you £50 to pay in £1000. Also this is fixed so you can't change mortgages without incurring some sort of charge. They also do a 5 year fixed at 5.69% with the same details as the 3 year fix. The 10 year fix you found seems to be a good deal in comparison.

Have a look on their website. In order to qualify for the Flexclusive deals there are some criteria that need to be met such as: having an open flex account for 3 months having paid in at least 750pm. There's another quicker way in too but I can't remember it.

Logic tells me using a tracker until baserate rises 1.5/2% with no ERC would be the best idea and then when you start to get anxious about BR rising more siwtch to one of their fixed deals, free of charge of course. The 5 year tracker also only has a £90 fee for finishing the mortgage early, if I recall, probably worth getting an appointment with a mortgage advisor at one of their branches.

Baserate would need to rise 2% for you to be paying the same as the 3 year fix and 3.5% for the 5 year fix.

Nerra

The OP will get 200k easy. I'm in a similar position with slightly less as a deposit and the minimum I was offered was 260k.

This is a good thread as I'm just about to take the plunge myself.

efunc

Nerra, who did you get offers from so far? Did you get favourable rates? First Direct seem to be very good if you can get a 40% deposit together, otherwise Nationwide. I may even have a chat with HSBC too since I've banked with them since I was 10.

Thrugelmir

efunc wrote: »

ryan86uk, what don't you like about the 10 year fix at 5.59% out of interest? That seems a very interesting prospect seeing as we are in a period of historic low interest rates. I recall when rates were 15% and for much of the past 20 years or so 7% has been average or respectable. It seems that over the next 10 years we will experience some truly horrific economic times and are genuinely in decline (loss of manufacturing, low growth, rise of china/india/brazil, competition, spiralling energy, increasing cost of food, poor education, etc). To take advantage of the current freak low interest and lock it in for 10 years as protection from encroaching pressures seems attractive in many respects.

If this is your view of the wider economy. Then maybe the price you pay for the property is as important as the interest rate you pay.

efunc

Thrugelmir wrote: »

If this is your view of the wider economy. Then maybe the price you pay for the property is as important as the interest rate you pay.

Yes of course. Hence why myself and many others have been saving deposits and waiting for the market to bottom out (in the medium term of 2-3 years naturally, not bottom out in absolute terms). And the price of property must be considered as an overall figure, including interest over the term. The lower the better, hence the desire for a 20yr mortgage with the facility to massively overpay in the early years and perhaps pay off entirely in 10.

Nerra

efunc wrote: »

Nerra, who did you get offers from so far? Did you get favourable rates? First Direct seem to be very good if you can get a 40% deposit together, otherwise Nationwide. I may even have a chat with HSBC too since I've banked with them since I was 10.

I initially contacted L&C just to see if we were able to get a mortgage for the price range we were looking at and they came back with some good rates and like I said the minimum was 260k.

I then put an offer on a house and the agent's mortgage guy went through some details with me to make sure I could meet my offer and when I told him my circumstances he smiled and said, mortgage companies will be throwing themselves at you.

It all seems goes on affordability now rather than income multiples and since the average cost of living for everyone is roughly the same, i.e fuel/food/bus fair/gas/electricity, someone who is on a high salary has roughly the same out goings but more disposable income.

You will be fine mate, I wouldn't worry about it.

SilverSix

Nationwide were willing to lend me x5 salary. Though my LTV is only 14/15% which might be why. Minimum amount from Nationwide was £25,000. Seems a bit odd for a lender to have such a high minimum amount of £260,000!

Nerra

BennyC wrote: »

Nationwide were willing to lend me x5 salary. Though my LTV is only 14/15% which might be why. Minimum amount from Nationwide was £25,000. Seems a bit odd for a lender to have such a high minimum amount of £260,000!

Sorry what I meant was that when the broker did the search for the maximum I could borrow, the lowest out of the lenders was 260k.

Hope that makes more sense.

SilverSix

Nerra wrote: »

Sorry what I meant was that when the broker did the search for the maximum I could borrow, the lowest out of the lenders was 260k.

Hope that makes more sense.

Ahh yep, makes sense that way :cool: