FTB looking for best deal

dannyleego

First time buyer here so looking for some advices.

House price £180k
Deposit 25%


Still considering if I should go for fixed or variable and have done some research.

Fixed deal
5yrs Fixed with Yorkshire BS, 3.39%, £995 fee and early repayment charge

Variable deal
HSBC or First Direct, 3.39%, £499 fee and NO early repayment charge

These are the deals from reputable lenders coming right on top of the comparison website.

Can't seem to find anything better than these. Should I visit a broker to find out more? Any better deal I have missed?

Many thanks in advanced for your inputs.

Thrugelmir

Follow on interest rate after fixed term has ended should be factored in.

Remortgaging to a new lender can be costly. So best avoided.

dimbo61

sorry but you can not compare a 5 year fix to a tracker deal !!
One gives you security for 5 years and the other could go up next month.
Do you need security for the next 5 years while you have a £135K mortgage ? at 3.49% over 25 years that works out at £675 per month for the next 5 years!
Who knows what mortgage rate will be in 2/3 never mind 5 years time.
You would have an outstanding balance of £116,510 approx.
If you earn £60K a year I would consider an offset mortgage and build up savings in the offset account or overpay the mortgage

dannyleego

For the record:

Went to Halifax eventually on a 2 years fixed product and a full offer has just landed today - total 6 workings days from application!

Friday (late evening) - full application and passed full credit check
Tuesday - receive call to schedule valuation on Thursday
Thursday - valuation
Friday (today) - full offer approved

Also worthwhile to note:
1) I am on Tier 1 visa and Halifax has no issue with that (HSBC & FD would refuse to lend in this case).
2) No income / payslip / bank statement has been requested. Not sure if this has to do with me being an ex-LBG employee.

Hope it helps.