Apply now or keep waiting?

Daniel_gecko

A few weeks ago I thought I was sorted. I was going to go with a 75% LTV from ING with 0 fees at 4.69%, fixed for 5 years.

Then a new deal came out and after some nice advice from the kind folk on these forums I was going to go for a 75% LTV with Accord for 4.19% with £495 fees, fixed for 5 years.

Then a few days ago another new deal came out and I am now going to go for that one - 70% LTV Nationwide 3.89% with £495 fees, fixed for 5 years. Alternatively 75% LTV at 4.14%.




It seems like rates keep dropping and dropping..

The only mortgage offer I currently have is a £999 fee Abbey 5yr fix at 5.24%. (I needed it to exchange)

I am buying a new build house which should be ready "August/September" and it looks like they are making good progress. The roof is all on, windows and stairs are in.

Should I apply now or do you think rates are going to keep falling? Should I wait more time before applying?

I took a quick look at interest swap rates but didn't really understand it, I think brokers know more about that. I can't ask my broker because they haven't returned any calls or replied to any emails for about a month now :mad:

Daniel_gecko

I have just been in to Nationwide.

They said that if I apply now and a better rate comes along for my 5yr fixed rate deal and suits my LTV then I can choose to pay the £99 application fee again and re-apply to that one. I wouldn't have to pay the £400 fee or Valuation again.


Also;
If my deposit reaches 30% (due to my finances or the valuation coming higher than expected) I will automatically get the 3.89% rate rather than the 4.14% rate.

Rate is guaranteed for 6 months from offer.


Sounded good I see no reason not to apply.

dimbo61

Good long term security and chance to get a good part of the mortgage paid off over the next 5 years ( what overpayments are allowed?)
Are you planning on staying at least 5 years in the property ?
Dont forget new builds often lose value in the first year or two

Daniel_gecko

£500 per month overpayments allowed, which I will be doing.
Plan on staying in this house for 5 years until I am 28, then moving out to a calmer countryside town for a family.

Ms_Sophia

Daniel_gecko wrote: »

A few weeks ago I thought I was sorted. I was going to go with a 75% LTV from ING with 0 fees at 4.69%, fixed for 5 years.
....
I am buying a new build house which should be ready "August/September" and it looks like they are making good progress. The roof is all on, windows and stairs are in.

Just be aware that ING gives instructions to the surveyors to value new builds as "2nd hand properties". Which for them inevitably means - deduct 5-10% from the purchase price regardless of the actual market value of the property. So you may not get to the LTV you're hoping for.

fairyprincess79

Hi
Just wanted to add that we are thinking of now going for the N/wide deal at 3.89% 5 yr fixed. Just got to keep our fingers crossed the valuation comes in high enough. Seems like the best deal out there that we can find. If we don't get 70% LTV the 4.14% is still a better deal over the 5 years (even with fees) than any other we can find.
Nice to know about the overpayments of £500 a month as I forgot to ask that. The norm seems to be 10% max - so this is another benefit of this mortgage!
And also good to know about being able to switch to a new rate should they change.....
Just wanted to say thanks for the thread as it has been very useful - we too keep changing our minds on what is best - but this time we WILL stick to it!