Best deal for new mortgage

bikeman17

My brother is looking to purchase a council property with his parents and has asked me to look into some mortgage deals.

Here are the details
House price - £350k
Deposit - £75k (RTB) + £100k (deposit)

Had a look on Natwest, as he banks with them and this is their best deal according to the website:
2 year tracker - £250 cashback
35Years Term / Interest only / Tracker
Exclusive to: Customers who use us as their main bank - terms apply.
3.09%, 4%, 4.0% APR, LTV 60%, fee=£0, £450.62 / month

Is this the best deal out there, your thoughts and advice please...

Senior_Paper_Monitor

Are all three (brother and parents) on council tenancy - if not has he lived there as his primary residence for the last 12 months and is this documented ?

Are his (your) parents less than 35 ? You want a 35 year term ....

Eligibility

• The applicant must be 18 or over.
• The maximum age of applicants at the end of the term is 70 years subject to serviceability beyond normal retirement age.

This is not the cheapest 2yr fix mortgage available at this LTV (and for RTB) - off the top of my head from 2.39% fixed with fairly standard fees.


I have an offer on my desk arrived for one this morning at 2.59% fixedwith <£500 fees.

bikeman17

Senior_Paper_Monitor wrote: »

Are all three (brother and parents on council tenancy - if not has he lived there as his primary residence for the last 12 months and is this documented) ?

Are his (your) parents less than 35 ? You want a 35 year term ....

Eligibility

• The applicant must be 18 or over.
• The maximum age of applicants at the end of the term is 70 years subject to serviceability beyond normal retirement age.

This is not the cheapest 2yr fix mortgage available at this LTV (and for RTB) - off the top of my head from 2.39% fixed with fairly standard fees.

I have an offer on my desk arrived for one this morning at 2.59% fixedwith <£500 fees.

They are all on the tenancy, there will be two names on the mortagage, brother aged 24 (salary 30k) and mum aged 43 (salary 12k). For mum 43+35 = 78, so may have to reduce the term here.

Are able to provide further details?

_Andy_

Weird - NW site says they don't do IO only any more

bikeman17

_Andy_ wrote: »

Weird - NW site says they don't do IO only any more

Maybe it depends on LTV....

_Andy_

I thought it would be but the site states

"NatWest no longer offer residential interest only mortgages. Customers with existing interest only mortgages are not affected by this change. Buy to Let mortgages remain available on an interest only basis. Please note that our website content is in the process of being updated to reflect these changes."

bikeman17

I wonder how long it takes them to update their website, i had a look back in Oct and was given similar price for interest only product.

Senior_Paper_Monitor

Sorry, I didn't spot the interest only line (answered the original query in a hurry) - no they don't ..

Interest Only

With effect from Sunday 2nd December all new residential mortgages must be submitted on a capital and interest basis.


With the incomes stated this is approaching affordability limits, particularly if there are any borrowings/financial commitments.

There is no mention of repayment vehicle - one may or may not exist - but no lender will consider without.

The proposed removal of a tenant from the purcahse opens up a number of other issues that should be considered.

This sounds like one for a broker with sound RTB experience - by which OP I mean retaining one (who will look at the detail), not expecting one to simply tell you online what the cheapest mortgage is without a full understanding of the background, which appears to be what you are expecting (and none will do for a multitude of reasons).

bikeman17

Senior_Paper_Monitor wrote: »

Sorry, I didn't spot the interest only line (answered the original query in a hurry) - no they don't ..

Interest Only

With effect from Sunday 2nd December all new residential mortgages must be submitted on a capital and interest basis.


With the incomes stated this is approaching affordability limits, particularly if there are any borrowings/financial commitments.

There is no mention of repayment vehicle - one may or may not exist - but no lender will consider without.

The proposed removal of a tenant from the purcahse opens up a number of other issues that should be considered.

This sounds like one for a broker with sound RTB experience - by which OP I mean retaining one (who will look at the detail), not expecting one to simply tell you online what the cheapest mortgage is without a full understanding of the background, which appears to be what you are expecting (and none will do for a multitude of reasons).

Ofcourse I understand you need every financial details of both parties before anyone can offer a suitbale mortgage product.

Jointly they both have combined outgoing of £500 a month, this includes bills and living cost. There are no outstanding debts on loans.