Mortgage advice

Jack_Johnson_the_acorn

Hi,

I've been accepted for a mortgage with my fiancee, but I'm unsure what mortgage to choose, if I choose a 2yr fix can I then change at the end of the 2 years to another provider if they are offering better rates?

Should I choose a lender with a low initial rate or a lender with a low SVR.

The best I have found with a 10% deposit is HSBC @4.69% 2 yr fix.

Lloyds have agreed to give us a mortgage but their rates are poor same as above but with 5.9%.

We have a joint income of around £45k pre tax.

any helpful advice would be much appreciated. :beer:

Thrugelmir

Remortgaging to another lender does incur cost. So may be better to opt for a 5 year fix from the outset. Then at least you know your outgoings. As a 90% LTV would leave you exposed if interest rates were to suddenly increase.

Likewise with going onto the SVR. How tight is your budget?

How much are you looking to borrow?

holly_hobby

Jack_Johnson_the_acorn wrote: »

Hi,

I've been accepted for a mortgage with my fiancee, but I'm unsure what mortgage to choose, if I choose a 2yr fix can I then change at the end of the 2 years to another provider if they are offering better rates?

Yes you may seek an alternative deal in the market (subject to status of course i.e passing the lenders status & criteria assessments). There may be remortgage fees, or you may qualfiy for any fee free deals that are about at the time (basic legals & survey). Why not consider a longer term product in the first place ?

Jack_Johnson_the_acorn wrote: »

Should I choose a lender with a low initial rate or a lender with a low SVR.

You need to consider both in my opinion, as you have to bear in mind that your personal and financial situation many have altered within the preceedings yrs, preventing a change in lender. If that happens you don't want to be stuck with a lender who over compensates for any loss leading headline rates/products, by over egging their SVR for existing borrowers above the market mean. You need a happy medium, an attractive initial product with a reasonable SVR when compared in the general market place.

Jack_Johnson_the_acorn wrote: »

The best I have found with a 10% deposit is HSBC @4.69% 2 yr fix.

Lloyds have agreed to give us a mortgage but their rates are poor same as above but with 5.9%.

At 90% LTV rates are not going to be as rosy for those at 75% - as the headline rate is indiciative of the level of risk the borrower is exposed to.

I am not currently an active adviser, so don't have access to mge sorcing software such as mortgage brain et al, an active adviser will have knowledge if in the current market the rates you have found are competitive or not (sure one will be along shortly).

Hope this helps

Holly

GMS

How much are you looking to borrow?

There are cheaper rates than HSBC but you need to look at the bigger picture, i.e arrangement fees, valuation fees etc.

Could be that a higher rate with no arrangement fee and free valuation works out better overall than a low rate with fees.

You may want to compare longer term fixed rates too.

Jack_Johnson_the_acorn

Hi,

Thanks for the quick reply :j

HSBC has lower fees than Lloyds and the same SVR.

I'm looking to borrow between £110k-£120k, We've been offered upto £189k but I'm not daft and wouldn't go near that figure.

With the Lloyds rate we'd still be comfortable and have around £1000 as a minimum each month and that is minus all outgoings and I mean all!!

Jack_Johnson_the_acorn

Going to speak with my bank Santander today, don't think they're going to be that competitive, they seem to give good competitive rates for high deposits but I don't think they're 10% deposit rates are any good... Soon find out.:j

Thrugelmir

Try the FSA website for unbiased advice and to compare lenders .

http://tables.moneymadeclear.org.uk/Comparison-tables-home/Mortgages/Compare-mortgages/