Longest fixed rate for first time buyer

chez000

Hi,

Me and g/f are currently looking to buy for the first time, if it helps we have joint income of approx 50k, are looking at proprieties with a value of 80k, and have 10% deposit.


Id prefer I think to have a fixed rate and have looked around for these and contacted a broker, but the longest fix I have seen was for 5 years at about 5.9 %.

I can live with 5.9 % but would like to know if it is possible to fix for lower and/or longer, does anyone know of different deals?

Also interested on opinions of long term fixing, Im presuming BoE interest rates will rise, so doubt that in 2 + years Ill get a lower rate,

Obviously also presuming FTB with only 10% LTV don't get the best deal either and in a few years unlikely to have made significant inroads into the mortgage when compared to the price of the property i.e still have at best around 10% LTV

Thanks

m00m00

with an income of 50k, and looking at properties in the 80k range, you want a mortgage that will allow you to overpay without (or few) penalties, as you should be looking at reducing your ltv considerably before the end of the fix, which will open up more options to you when remortgaging.

chez000

m00m00 wrote: »

with an income of 50k, and looking at properties in the 80k range, you want a mortgage that will allow you to overpay without (or few) penalties, as you should be looking at reducing your ltv considerably before the end of the fix, which will open up more options to you when remortgaging.

Thanks

Haven't really looked in much detail about penalty fees but yep look out for these going forward.

We had loosely thought about saving as much as possible during the fix and then paying this off at the end of the fix before maybe re-mortgaging.
E.g pay approx 10 k of the principal, have saved maybe another 10k then remortgage for 60k though possibly it doesn't work like this??.
We've only been looking itno this for the last couple of days so a lot of this is new to me, please bear with me if I come across as simple.

somethingcorporate

It does work like that, the only issue is that the savings will earn less than going to overpay the mortgage. The best savings rates are about ~3% gross so 2.4% net whilst overpaying your mortgage offsets the debt at 5.9% (net), a massive massive plus for overpaying the mortgage.

handytips

Hello

Have just checked whole of market for you, 5.89% is best fixed deal via intermediary channels however i would take the 6.09% deal as the arrangement fee is lower and works out a little better over the period. Be careful the lender chosen for you is very picky indeed. Good Luck

chez000

handytips wrote: »

Hello

Have just checked whole of market for you, 5.89% is best fixed deal via intermediary channels however i would take the 6.09% deal as the arrangement fee is lower and works out a little better over the period. Be careful the lender chosen for you is very picky indeed. Good Luck

Who was/is the lender?

chez000

Thanks everyone for the useful advice

Senior_Paper_Monitor

Whilst the standard CeMAP 'right answer' for a young FTB couple is 5 year fixed we tend to ask them to consider a few other issues ....

Career progression, external family pressures, breeding, whether they will like each other in a few years time etc etc

.... and then ask if they are so keen on long term contractual arrangements with heavy exit penalties !



In today's market there is considerable, totally justifiable, 'conventional wisdom' saying fix long term - but you appear to have income capable of supporting an increased rate in the future - and freedom may be of more value to you.

We also push the consideration of pre-planned separation agreements under tenants in common and Deeds of Trust (Declaration of Trust) - but perhaps we are just a pair of old cynics who believe what can go wrong, will go wrong !!