Do deals for ftb with 15% deposits exist?

tyler80

Anyone seen any about? All the ftb deals I see around are for 10% deposits or 20% deposits.

The 15% deals have better rates than the 10% but high product fees and no incentives mean they seem to work out about the same overall.

Wh05apk

There are loads of deals at 85%, abbey, Accord, Coventry and a few others have free vals, possibly cash back, fees tend to start from £495.

ViolaLass

You've answered your own question.

tyler80

On a sort of related note, are there any online calculators that let you compare mortgages and include things like product fees and cashback etc.

Does the overall cost for comparison include these things?

e.g. I'm looking at a mortgage of 105,000 over 25 years
2 year fix rate for ftb at 5.69% (90% LTV) with no product fee and cashback of £300
2 year fix rate at 4.99% (85% LTV) with £700 product fee

Over the 2 year fix the difference in total outlay is minimal (<100) according to my crude calculations but not sure if I'm calculating correctly. Are there likely to be any other advantages to going for one deal over another?

kingstreet

tyler80 wrote: »

On a sort of related note, are there any online calculators that let you compare mortgages and include things like product fees and cashback etc.

Does the overall cost for comparison include these things?

e.g. I'm looking at a mortgage of 105,000 over 25 years
2 year fix rate for ftb at 5.69% (90% LTV) with no product fee and cashback of £300
2 year fix rate at 4.99% (85% LTV) with £700 product fee

Over the 2 year fix the difference in total outlay is minimal (<100) according to my crude calculations but not sure if I'm calculating correctly. Are there likely to be any other advantages to going for one deal over another?

To compare costs, I simply work out the monthly payments over the two years and add them to any fees payable. Deduct any cashbacks and find out the total cost over the two years.

Do that for each deal and basically, the lowest number wins!

For example (assuming there are no valuation fees on the deals you mention?)

£105k over 25y repayment at 5.59% fixed for 2y with £300 cashback;-

£664.45 x 24 = £15,947 - £300 = £15,647

£105k over 25y repayment at 4.99% fixed for 2y with £700 fee;-

£620.21 X 24 = £14,885 + £700 = £15,585

The difference is therefore £62. They aren't normally as close as that. Don't forget to allow for extra interest if you would add the fee to the mortgage!

Only you know what features and benefits would suit you. Lower early repayment penalties? Overpayments? Daily interest? No need for bank statements? Type of property? Location in UK? There are so many I could be here for hours...

tyler80

Thanks for that, it's confirmed that I was doing my sums the right way. As far as I can tell all the other terms are the same in terms of overpayment options etc. It looks like there'll be even less difference once you add the mortgage fee to the mortgage - we were advised that if a sale fell through this fee would not be refunded if paid upfront.

It's slightly annoying that we've managed to save more than 15% deposit and don't seem to be any better off for it but then by the time we actually get an offer accepted we might have 20%