FTB searching for 1st Mortgage

toocan

Ive had an offer accepted on a house (155k) and I have a mortgage in principle from HSBC (80% LTV Lifetime Tracker Fee Free @ 3.29% with no fees)

On paper this seems like the best deal on the market however im cautious and wondering if there is a better deal out there? or wether this is the best mortgage to get considering my situion as I have 40k in savings?

suggestions and advice appreciated

herbiesjp

Have you looked at 75% deals?

Why in particular a tracker?

toocan

herbiesjp wrote: »

Have you looked at 75% deals?

Why in particular a tracker?

They do a 2 year fixed for 3.99% but the arragement fee is nearly £600.

The tracker is free to arrange and I can transfer or exit it at any point (I can also overpay) If the base rate dramatically jumps up I can just switch easily? Ive no crystal ball but im guessing the base rate will raise slowly enough for me to switch..

The_Palmist

HSBC were offering tracker at 2.99% with no fees etc...

The_Palmist

as herbie said ....have you checked 75% LTV deals

The_Palmist

Just checked on HSBC website, looks like they have added a fee to 2.99% deal. A fee of £600 saves you 0.3 % in interest. Everything else is the same.

toocan

herbiesjp wrote: »

Have you looked at 75% deals?

Why in particular a tracker?

Only with HSBC ...

handytips

As you have said that you are cautious, then surely a Tracker is totally the wrong product for you. Always work your affordability as if the mortgage was based on 6%, as believe it or not they will get back to around the 5/6% mark in the future, you are looking at a lifetime tracker which gives you no protection in interest rate rises in the future, like i have said many many times before, the rate isnt everything. If i were your advisor i would be looking at 3 or 5 year fixed rates for your needs, you need advice from a qualified advisor and this doesnt mean the one at your bank, look at the big picture, if you are taking any insurances such as life and Home insurance with Hsbc then it is likely that the same insurances will be able to be brokered at a much cheaper price than what they can offer and the cover in all likelihood will also be better.

Flower3200

remember that if you select a tracker rate now and rates do start to increase the low priced fixed rate deals on offer today will be pulled and repriced upwards almost overnight....and you will then have to pay what may be a higher arrangement fee as well to secure a fixed rate product at that time. Also, I would imagine when Bank Base Rate rises and everyone scammbles to fix their rate, lenders just may increase lender's arrangement fees as well..

You are likely to be comparing the tracker to today's fixed rate priced products however, these competitive deals may well increase in price as soon as the Bank Base Rate increase so do factor this in as well.

dimbo61

With a 25% deposit YBS are offering one of the best 5 year fixes at 3.99% fee £995 or 4.39% fee £95 which would give you long term security.
10% overpayments allowed
3.29% for £115K works out at £562.85 over 25 years
3.99% for £116K works out at £611.65 over 25 years
4.39% for £115K works out at £632.05 over 25 years
So you would pay £50 a month extra for security ! Until the BOE base rate goes up 1% then it would be cheaper!