First time buyer\ 10yr fix rate morgage

petchy

Hi folks,

Just beginning to look into buying a house with my girlfriend...we are both graduates and earn £32,000 a year combined at the moment.

We have 10% deposit for a house of up to £158,000 house if needs be....

after looking at morgage options ybs have an interesting offer at the min...

http://www.ybs.co.uk/mortgages/current_products/products/fix_005.jsp

4.95% for 10 year fixed seems too good to be true, can someone tell me if it is or isnt? and if after 10 years the morgage can be moved elsewhere without incuring any cost?

hope someone can help!

thanks!

SO171NOT

It sounds about right for a 10 year one to be honest as it is a big gamble that interest rates don't go down in that time too. I took a 5 yrs Fixed at 4.65% in 2003. A friend of mine says YBS are very helpful.

Andyboy

Hi petchy

Just had a very quick look at the mortgage. I would just bear in mind that there are early redemptions on this mortgage and I could not see quickly if the product is portable or not. This mean that if you decide to move house before the 10 yrs are up you will still have to pay to leave the mortgage.

just something to consider when taking out a long term fixed prodct or alike.

i do like the overpayment facility though as this will help save some interest when you can afford it!

Good luck

UK007BullDog

Have a look at the Woolwich 10 yr fixed deal. Its portable and no redemption fees as far as I know.

petchy

Can anyone explain this part on the ybs site..

* 7% before 31/03/10
* 6% before 31/03/12
* 4% before 31/03/14
* 2% before 31/03/16
* 1% before 31/03/17
* If the product is repaid in full or in part, or transferred (in full or in part), an early repayment charge is payable as described above. However, overpayments (monthly or lump sum) up to a total of 10% of the outstanding loan per year are allowed without charge. Any amount repaid over the 10% limit will incur a charge of the percentage specified on the excess amount.


In your peoples honest opinion would anyone recommend a 10yr fixed rate mortgage for a first time buyer or do you think i'd be better opting for a 2 or 5 year fixed rate or even variable!!

all advice is welcome and as much help as poss would be great!

thanks!

GunJack

This is describing the early redemption charges to you. e.g. if you pay the loan off before March 2010, the early repayment charge will be 7% of the value of the original loan, i.e. if you borrow £100k and pay it off before march 2010, they will charge you £7k.

If the product is portable, then it is a good deal. 10 year fix at that rate will give you some much-needed stability, and as was pointed out earlier, the overpayment facility is a bonus

petchy

Smashing, thought that was the case!

Cant see whether or not the thing is portable, thats my only reservation about it?! Have you spotted anything?

GunJack

I haven't looked to be honest - if in doubt, give them a call and ask....

petchy

yeah i think i will.....

has anyone else got any decent recomendations about what they think is a good deal at the moment for lets say a £135,000 mortgage over 25 years?

Cheers

HelpWhereIcan

The YBS deal is portable afaik.

Assuming that you have the minimum deposit that the deal requires (10%), that your income supports the loan and you are taking a 25 year repayment mortgage, I did a quick comparision on my version of moneyfacts and the YBS deal does work out the lowest overall cost over the 10 years.

However, use http://www.moneyfacts.co.uk/searches/default.aspx to do your own search, based on your true circumstances, to ensure that there is nothing I have missed out. I am NOT saying that I think this is the right deal for you. I would say to get some advice, but then I would, wouldn't I. :rolleyes:

Are you happy with overpayments being restricted to 10%?

What changes do you expect in your life over the next 10 years? Have you taken them into account when deciding how suitable a 10 year deal will be for you?

Personally, I would say to also have a look at the following thread for a decent enough illustration of what some of the issues are.

http://forums.moneysavingexpert.com/showthread.html?t=221480

It has both the pro and con arguments for 10 year fixes and , hopefully, it may help prompt you to consider most things you need to.

Hope this helps