looking for a fixed rate, so much choice... please help

stolt

Hi looking for some advice please.... we have seen a house that we want a buy 400k. our current house has just gone on the market for 307k (we bought for 153k), which we have a mortgage of 66,400k left (was on fixed for 5 years, end 2nd of April).

It would mean we would need a mortgage of 168k for the new house. to be honest it will be very tight for us on this mortgage I currenly earn 35,500k, so I was hoping to get a 5 year fixed on this 168k.

I've been on alot of the comparison sites over the last week or two and to be honest I've just seen so many mortgages I don't know what I've seen and where.

Just recently I;ve seen a good mortgage on Yorkshire building society
5.49% until 30/04/12 then
7.15% variable (our SVR) for the remaining term of your mortgage.

Can anyone help us choose a mortgage that is fixed for at least 5 years and has a low interest rate so I can keep the monthly payments down.

lastly, is the key of comparing mortgages to look at the overall interest rate quoted?

lastly when i find a good mortgage if i apply for it and say i want it to take effect sometime in april will the bank hold the rate until then or will i be charged whatever the rate is when in april.


many thanks

herbiesjp

There are many deals out there.

However which will be the "best" for you will depend on your overall sceanrio. The fact you have a big deposit will go in your favour with many lenders.

Most deals will go on to the Standard Variable Rate of the lender once the fixed rate is up, so you are better comparing the overall cost between schemes, based on the fixed rate perios and the costs involved (as ideally you would choose a new scheme after the fixed rate has expired and not pay the SVR)

If you apply for a mortgage today, a lender will issue a formal mortgage offer letter valid for 3 or 6 months (normally), so once you have applied for a specific deal, the lender will honour that deal

HTH

stolt

thanks for the reply, my main problem is comparing the mortgage offers from the different comparison sites, i think i've seen so many that they have blurred into one. I should have stuck with one comparison site and i think it would ahve made the job easier.

I think it's like choosing a mobile phone tariff, on the face of it, it looks good but when you look at all the additional costs they soon add up and it no longer looks as attractive as it once was.

KTF

I would go and see a broker and let them do the research for you. Its much easier than trying to do it yourself.

alexneale442

i would agree, go and see a broker, they will do a comparison for you also and should make the picture much clearer!!

stolt

thanks, has anybody got any suggestion of which broker to use.... I have a couple of numbers, I guess a fee will have to be charged, whats a resonable fee to pay a broker.

Rick62

The broker will receive commission fromthe lender of, typically, £600 for your size mortgage. You should be able to find a fees free broker, i.e. who is happy with just the lenders proc fee.

trets77

download the remortgage guide from the main site. or take a look around moneysupermarket.com they can get a broker to arrange a vist.

i,m looking at remortgage myself due to end of deal and the good fixed rates are being snapped up fast due the B of E raising rates . i,m gonna gamble the other way and get a tracker and hope for a stick or decrease in rates rather than pay OTT for a lousey fixed rate of 5.5 ish

herbiesjp

stolt wrote:

thanks, has anybody got any suggestion of which broker to use.... I have a couple of numbers, I guess a fee will have to be charged, whats a resonable fee to pay a broker.

Plenty of fees free brokers to choose from, and they will be happy with the commission from the lender

sarkin

now you no what brokers have to go through when they are looking for a product for a client.

Cerulean

trets77 wrote:

i,m looking at remortgage myself due to end of deal and the good fixed rates are being snapped up fast due the B of E raising rates . i,m gonna gamble the other way and get a tracker and hope for a stick or decrease in rates rather than pay OTT for a lousey fixed rate of 5.5 ish

Do you think rates long term will drop much below this? I've seen a couple of 10 year fixed rates around 5.4-5.5% which I thought were quite sensible.