FTB with C&G

marrioa

Hi everyone, it's a long time since I wrote a thread but I could use some help please.

My son and his fiancee have put an offer in on a house for 110k and need to borrow 104k. Their joint income is only 26,500.

I've seen a mortgage with C&G - FTB stepped fix 95 - that offers free valuation, no product fee, and no Higher Lending fee.

The rate starts at 5.09 for a year, then 5.49 for 2nd year, and finally 5.99 for year three. They only want to fix for three years. The only thing to pay on completion- apart from the mortgage of course - is £150 land reg fee.

Over a 35 year term their initial payment will be £530.

Does this seem OK or am I missing something obvious?

I would appreciate any replies. :A

herbiesjp

As long as they have no other debts in the background, all looks ok

MortgageMamma

Hi

Fixed stepped mortgages are primarily aimed at people at the bottom of a pre defined career ladder who will get regular promotions and pay increases, doctors and teachers for example. I would advise you to think carefully about whether the applicants would be able to afford the mrotgage as the rate rises, especialy if they have children or plan to start a family. A lot can happen in three years, and I would suggest you urge them to take independent mortgage advice via a whole of market broker. That way, all the pro's and con's can be discussed with a professional, and perhaps a better deal can be found that is affordable and does not escalate over time

HTH

MM