is this a good deal?

Kimberley82

We are been accepted for a mortgage, yay, never thought this day would come as we messed up so much financially in the past.

The house is up for 140k, we are putting down 85k and the mortgage is for the rest.

We have been offered a rate of 2.89%, does that sound OK?

Kimberley82

anyone at all?

kingstreet

If that's a two year tracker and you need a five year fix, it's a lousy deal. I reckon no-one has responded because everyones' needs are different and we don't know yours.

Research the product and its downside and if it suits you and your needs, then I guess you've answered your own question.

GMS

Not enough info to say.

How bad were the credit problems? Is the rate fixed/tracker/discount? How long for?

2.89% with credit issues sounds good on the face of it. Are you happy with it? Which lender? Did you use a broker? If so they should have recommended the best deal anyway.

Kimberley82

We used a broker, its with Abby and its fixed for 2 years. We have had really bad credit in the past, ccjs etc

getmore4less

Kimberley82 wrote: »

We used a broker, its with Abby and its fixed for 2 years. We have had really bad credit in the past, ccjs etc

whats the rate after 2 years

what fees?

Kimberley82

getmore4less wrote: »

whats the rate after 2 years

what fees?

He hasnt told us the rate after 2 years, he said we can go into another fixed term.

£995 to pay to Abby

getmore4less

Kimberley82 wrote: »

He hasnt told us the rate after 2 years, he said we can go into another fixed term.

£995 to pay to Abby

For another set of fees and commision

IT is VERY important to know the followon rate it is critical to the deal.


LTV is very good what's the salary multiples.

deedee71

£995 for a 2 year fix doesn't seem that good in my opinion. Some base rates are little more than 2.89% and you could then fix if rates start to move. But if you have problems getting a mortgage......maybe it is ok.

You really need to know what the rate will revert to after 2 years. Do you plan to overpay in the initial 2 years to reduce the debt? If I were you I would hit it really hard and pay down as much as you can, assuming your mortgage allows.

I'm alarmed that your broker hasn't told you the reversion rate. What else has he not told you?:eek: Or what else have you not asked. You have a really good LTV and should consider what means more to you, a low rate now, a fix, or a longer fix??

Peelerfart

On the info we have this is not good

It's threads like this that gives brokers a bad reputation,some deserved,some not, IMHO

helenftb

Hi there,

I would love that rate, Im currently applying for a mortgage in the region of 4.9 something (I do know, just don't have the details on me) £1k arrangement fee, have excellent credit, always have, but only have 20% deposit, and lots of silly credit searches on my file of late due to not realising the effect they have (and prior to my discovery of this site I might add!) -tho strangely my rating atm is still 'excellent'.

Good luck with the purchase