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FTB with C&G

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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

Comments

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    As long as they have no other debts in the background, all looks ok
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • 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
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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