Moving Home - mortgage advice

sejdee

Hi
Been lurking on here for a while gleaning information, and glad I did.

Our previous property has sold and we have moved into a hired property while looking for a new home.

We are looking at a mortgage of around £105,000 and have a £60,000 deposit. I have done some searching around, and for us First Direct keep coming up as a very good deal.

Can get a 3 year fixed rate deal of £509 (3.19%) per month with a £499 set up fee over 25 year term. No over payment charges, and no exit fees after the fixed period. This seems a pretty good deal to us.

Could a good broker beat this?

I am 47 this year, so a 25 year mortgage takes me too age 72. Could this potentially be an issue?

Are First Direct good to deal with?

I am in secure employment with a blue chip company, and have an excellent credit record with a high £30,000 income.

Dave_Ham

Are you stating 25 year term as this is the norm?

If so and not for affordability reasons, you must realise that over 65 at end of term (some banks) and 70 (other banks) they are much less likely to lend and what all sorts of income in retirement.

Interest only are also much harder to achieve and as you enter 50+ years of age the income multipliers are reduced..

I would imagine First Direct is going to be 5050 and depend heavily on anything in the background credit commitment wise...

A broker is unlikely to beat the rate and certainly not a fee free broker, as nothing commission paying will beat it.

Ask the question with First Direct and ensure you meet the criteria before applying though and undertaking an unnecessary credit score..

All the best

sejdee

Thanks for reply Dave

Yes, I stated 25 years as the 'norm', and not for affordability.
We could go for a lesser term and it would be affordable at present, but guess we are just a bit wary in case (when?) interest rates go up. We have a reasonable quality of life at the moment (financially) and we don't want to have to cut back on that. I would rather pay less for longer on the mortgage, and either make over payments or put it into an ISA and then lump that into next mortgage deal and bring the length down.

I am lucky to have an ex forces pension at present, so this might help in any decision by the lender. Credit commitment, we have nothing other than house rental, bills, no loans, or outstanding debts at all. Have never defaulted.