Best 70% LTV Mortgages. Please Help

madkid88

Hello Everyone

I am hoping to buy an house for around £282,000 and have a deposit of £85,000 meaning I have 70%

I have been looking for deals on best, the three best deals that stand out are Northern Rock (Virgin Money), HSBC and Santander. I am looking for 5 year fixed deals only. Below are them

Northern Rock: 5 Yr Rate 3.05%, SVR 4.79%, Product Fee £995

HSBC: 5 Yr Rate 3.19%, SVR 3.94%, Product Fee £599

Santander: 5 Yr Rate 2.99%, SVR 4.74%, Product Fee £995 (£250 CashBack also)

I am confused as the above are very good deals, however HSBC allow the 20% overpayments every month whereas Northern Rock and Santander only allow the 10% every year of overpayments.

What do you guys recommend. Your advice is invaluable and as I am a first time buyer I dont know much about this.
I already have my mortgage in principle by Northern Rock, but not the other two.

Thanks

Thrugelmir

Is overpaying by £20k to £40k per annum a requirement of your search?

bigadaj

10% overpayments are normal and adequate for most, after all this could reduce your mortgage term to easily less than ten years.

You need to calculate the cosy you'll incur for all deals and also the outstanding balance at the end of five years which should show the cheapest option.

Anecdotally Santander can be a nightmare to deal with from reports whereas HSBC are very fussy, so make sure your credit file is clean if going with them.

HSBC follow on rate is considerably lower which looks attractive, but many things could change over the next five years.

madkid88

Thanks for your responses.

Its between Virgin Money and HSBC then.
Has anyone had experiences with one or both.

After the 5 years are finished on the fixed, we can look for another mortage and not stay on the higher rate.

madkid88

I think Santander is looking the likely option as rate is 2.99%. I will also receive £250 cashback when taking an mortgage with them and free valuation of the house. Northern Rock are charging £279 to value the house plus the £99 application fee and the £995 product fee.

However, with Santander there is a £279 charge when leaving the mortgage when the 5 year fixed has come to an end.

Annouck

Hi. Have a look at Nationwide too. I'm in a similar position and it was a very close call between them and the Virgin Money deal that you found. There was a fag paper between them, but the added benefit of being able to nip in to the building society in town for overpayments and the like won the deal. 5 year fix, £99 fee, free vals and legals. 3.19%.

madkid88

Nationwide rate is not as good as the Santander and Virgin Money though.

Bufger

The important bit is the rate over the next 5 years. Personally the santander option looks better. The £250 cashback can offset the exit fee after 5 years and the product fee is the same as Northern Rock but the SVR and Rate are lower. Even the 0.06% difference each and every month will stack up so you will ultimately save money on this option.

Now is the question of whether you'd rather pay that little bit extra for better service as Santander are a known nightmare.

madkid88

Bufger wrote: »

The important bit is the rate over the next 5 years. Personally the santander option looks better. The £250 cashback can offset the exit fee after 5 years and the product fee is the same as Northern Rock but the SVR and Rate are lower. Even the 0.06% difference each and every month will stack up so you will ultimately save money on this option.

Now is the question of whether you'd rather pay that little bit extra for better service as Santander are a known nightmare.

I will have to consider this now :-)

PBA

Bufger wrote: »

Now is the question of whether you'd rather pay that little bit extra for better service as Santander are a known nightmare.

Ok I'll bite on this - is Santander's mortgage customer service really that bad? I work in one of their branches and, of the customer service departments I have to phone, the mortgage side is definitely the best. Everybody knows that Abbey's service was poor 5 years ago, but are they really still that bad compared to anyone else?

Matt_The_Chippy

I have a Santander Offset mortgage, I have to say they have been a pleasure to deal with, knowledgable and very helpful to me. This is both in branch and over the phone. From my experiences with them, I can't see where all the negative press about them comes from. I know some people will have bad experiences, so don't flame me for my thoughts.