Nottingham BS

absolute0

Could someone help me understand if this is a good deal for a fixed term first time buyer Mortgage please?

We are looking at a 85% 2 year fixed mortgage. A mortgage broker has advised that their best deal is with Nottingham BS - they can offer 4.09% initial rate, which reverts to 6.14%. With a cost for comparison at 5.90%. The fees come in at around £1200.

We would be looking to remortgage at the end of the fixed term.

http://www.thenottingham.com/mortgages/fixed-rate-mortgages/

Does this sound like a good deal or should I be looking at the likes of N&P or COOP?

TIA

kingstreet

On a two year fix, a borrower of a relatively small amount is better off choosing a lower/no fee product, rather than a very low rate with high fees. a borrower of a larger amount does the opposite.

You need to work out the difference using your mortgage amount and the rates open to you.

absolute0

We are looking at a mortgage for £135,000 with a deposit of £25,000.

From looking at the L&C site, Leek United provide an initial rate of 3.59%, then goes to 5.19%, with fees coming in at just under £1000.

We are looking to keep the repayments around the £700 mark.

Thrugelmir

absolute0 wrote: »

We would be looking to remortgage at the end of the fixed term.

Why?

Remortgaging can be an expensive process. A mortgage lasts 25 years so chopping and changing every few years does mount up.

kingstreet

absolute0 wrote: »

We are looking at a mortgage for £135,000 with a deposit of £25,000.

From looking at the L&C site, Leek United provide an initial rate of 3.59%, then goes to 5.19%, with fees coming in at just under £1000.

We are looking to keep the repayments around the £700 mark.

You may only get products which pay commission to a broker if you look on a broker's site. Check comparison sites and the websites of lenders who only accept business directly.

As Thrug said, you would need to be able to remortgage completely fee-free to make moving worthwhile if you got a decent follow-on rate.

absolute0

Do most of the direct mortgage lenders provide online or phone based setup or would I need to go to one of their branches?

It's been many years since I had a mortgage and when I took one out it was all done in branch.

kingstreet

It varies. Most seem to have internet, phone and in-branch mortgage facilities. Some of the products where you need to have a current account with the lender can be quite attractive.

Other than the lousy follow-on rate, that Leek United fix isn't bad.

absolute0

The CO-OP keep coming up on the mortgage comparison sites, but not when we speak to brokers. The deal I've seen is:

2 Year Fixed @ 3.99% with the SVR @ 4.74%, no admin fees and repayments coming in at £711

Can you recommend the CO-OP?

kingstreet

The Co-Op don't take business from intermediaries or pay commission.

This was the giveway;-

Some of the products where you need to have a current account with the lender can be quite attractive.

I'm recommending no-one. I'm suggesting places to look for yourself.

Conrad

Leeds do a direct 3 yr fixed at 4.03% with £800 completion fee.

Nationwide 4 yr fixed 4.19% - direct only.

These are not recommendations, just options for YOU to explore.

absolute0

I appreciate you cannot recommend any, but thank you for your opinions