FTB trying to understand bank mortgage estimates.

GMS

Lower rates usually have arrangement fees payable to the lender. Figure if the fee is worth paying, don't get blinded by rate.

At the end of a fixed rate you can usually move without penalties (aside from any admin fee type costs which would be detailed up front) or go on to the lender follow on rate.

Remember circumstances can change so no guarantee of being able to move lenders. May have children, incur debts, lose job, reduce income etc all of which will affect borrowing ability. Lender criteria can also change for better or worse.

You need to ask yourselves what you think more important. Stability i.e fixed rate or lowest possible payments which could be a tracker which may change.

From your initial post you searched 5 year fixed rates. May be a good way to go at buying first home. Gives stability for the first 5 years and a chance to eat into the balance. Look at overpayments to bring down the balance further. The more you can pay off in the initial period, the less you will owe and be liable for when it ends.

Nine_Lives

Thanks guys.

I've just googled what can go against you when applying for a mortgage. Everything seemed A-ok for us, apart from reading this link....

http://www.guardian.co.uk/money/2012/jun/01/applying-for-a-mortgage

4 hour interview. What would you do it your partner lost their arm & all that. Seems a bit OTT. What would you do if they died i can understand, but lost an arm? Come on.

Also, enquiring about every little purchase. This is the one that concerns me. You should see my bank statements - LOADS of transfers. I had many accounts (about 20-30 or so, largely due to banks putting caps on (such as 5%, but only up to £2.5k, and you can have 2 of these etc). As a result, i had £1000 flitting about all over the place on the first of each month.

I'll end up bamboozling them trying to explain that one. Hope they don't ask.

KTF

Their description is way over the top. They want to see income, outgoings and evidence of both.

Took about 1h30 to do it over the phone with HSBC for me and most of that was them reading legally required statements.

GMS

Many lenders wouldn't want bank statements so that worry is gone!

Insurances need to be considered but if you don't want any then it is your choice and risk.

I think you may be over worrying. My advice, as biased as it may sound is to stop googling and speak to a broker.

Try googling a headache. You will be shocked by what you may have!

Nine_Lives

I know what you mean. Still, when i come home from work it's 6pm thereabouts. I don't know if you guys work 6pm onwards? (That's a genuine question, not a sarcastic remark). So i just try & pick up/learn as much as i can in the evenings.
I work most Saturdays, so really the only chance i think i may have to get an appointment is a Sunday, unless there's evening slots? The wife doesn't work Saturday's, so if Saturday is good, she'd have to go alone or wait for me to get a day off.

GMS

Appointments should work around you. Do you need face to face or would you be happy with telephone advice?

Either way you should be able to find help.