Mortgage rate

blueruby_2

We are hoping to buy a house for £178000 with 35% deposit. The best rate given to us by our m.advisor was 4.19% fixed term of 5 yrs , bkng fee of £199, free valuation. Can anyone advice us if this is a good one to go for? Any help is appreciated. Thanks for your time.

kingstreet

Do you want a fix? Do you want a fix for five years?

This is a subjective issue and not one where a "one size fits all" rule can be applied.

What do you want from a mortgage?

blueruby_2

Feeling a bit lost, we just want the best deal possible, not sure if fix / 5 yr fix is the best option or not. Our credit history is good & we currently rent for £700 pcm. Thankfully DH, the sole earner in the household, is in a good job with a good pay. Let me know what details i need to provide & i'll do so.

blueruby_2

We just thought that a fix might be better as the rates are low now & will creep up in the future but v r just not sure.

ACG

Presumably you know the difference between Fixed, Tracker, Offset etc? If not thats fine we can explain the difference.

If you do then you need to decide whats the most important.

Do you want the best rate? (Typically this would be a tracker/discounted rate).
Do you want the security your rates wont rise for a few years? (This would be a fixed rate, but are rarely the cheapest).

How long do you want to be tied into a deal for?

These are all things you should be discussing with your advisor. It sounds like you want the best rate and a fixed rate - so it might be a case of finding the best fixed rate? But it might not be...as Kingstreet says, whats "best" is subjective to each individual and their needs/wants.

blueruby_2

We would ideally like to know the best rates for both tracker & fixed mortgages, whats the benefit of either one & which is best suited for us.

dimbo61

This is why you need to sit down with a "whole of market mortgage broker" who should do a complete fact find with the both of you.
Ages, kid/s ? plans, career,income, deposit, savings, RISK!!
No point taking a 5 year fix if you need to move to glasgow next year for work reasons!
Fixed might be a very good idea if you cant afford for rates to go up!
Offset might be for you if you have savings and get bonuses !

steveott

Hi.

There is the 3.59% 5 year fix from post office. Admittedly has higher fees but will still work out cheaper over the 5 years.

also 3.49 for 5 years from chelsea BS but personally wouldnt recommend them as it took them over a week to even process my application.

Post office have been excellent so far.

blueruby_2

steveott wrote: »

Hi.

There is the 3.59% 5 year fix from post office. Admittedly has higher fees but will still work out cheaper over the 5 years.

also 3.49 for 5 years from chelsea BS but personally wouldnt recommend them as it took them over a week to even process my application.

Post office have been excellent so far.

Thanks, will check this out.

blueruby_2

As suggested by dimbo61 i think we may have to find a whole of market broker or an independant one (still not very clear on the difference). I am happy to pay a fee if the broker genuinely searches thru every deal available in the market & helps us find the best one suitable. Would prefer some one face to face if possible. Can anybody recommend a broker in the East Midlands pls & anyone we better avoid ? Thanks.