Choosing a mortgage provider

dnevets

I'm a first time buyer, just had an offer accepted on a property, now looking to choose a mortgage provider. Perhaps a silly question but is there any reason why I shouldn't just go to moneysupermarket, put in my details, and choose the one with the lowest monthly repayments?

For me, that would mean Leek United BS, who I'd never heard of before now. Is there any particular reason why I should ignore them and go for the likes of HSBC?

Thrugelmir

Cheapest interest rate does not equal best deal. Factors to consider are:-

Product fees.

Follow on SVR interest rate.

Other obstacle may be that you don't meet lenders criteria as a borrower.

ACG

Also Leek building society might only lend in surrounding areas.

As has been said, criteria can be quite important especially if your looking to borrow a large income multiple, have credit issues, etc.

dnevets

I think the costs shown on moneysupermarket actually include all the associated fees.

After the (for example) 2 year initial discounted period, I am then free to take my mortgage elsewhere, before the payments increase according to the SVR - is that correct?

I have no credit problems, a 15% deposit, and I want to borrow less than 3x my salary.

Thrugelmir

dnevets wrote: »

I am then free to take my mortgage elsewhere, before the payments increase according to the SVR - is that correct?

You are.

Though the transaction may not be free.

Further product costs and legal costs for remortgaging need to factored in. Dependent on deal of course.

As your mortgage balance reduces then switching lenders becomes more and more uneconomic.

dimbo61

Cart and Horse or should that be Horse and cart
You would have been better getting the mortgage sorted from a lender first before you made an offer on a property.
Great idea to take the cheapest deal for the shortest time
In 2 years you will have paid NOTHING off the mortgage and if property prices stay flat you may well end up with less that 85% LTV just as interest rates start to climb to normal levels of 5/6%.
You then face remortgaging with less than 85% LTV and higher rates