Partner & I need help choosing a Mortgage!!!

madtaff

Hi my partner an i need help in deciding which mortgage to go for, we are both first time buyers.

im earning 23200 and my partner earns 21000(this due to go up a few grand later in the yr)

neither of us has any loans outstanding, tho my partner has 4000 on a credit card.
we both have around 4000 in savings each.
we've looked at all the mortgages out there but are a little lost by all the jargon that comes with it.
the house we are looking at is 160000 and would be looking to get a mortgae for around 152000 as i can get an 8000 interest free loan off the armed forces.
so we are really looking for advice from other people who have been in a similar predicament, look forward to hearing from you. thanks:beer:

herbiesjp

You should be fine on the mortgage amount?

Do you both have a good credit history?

What kind of questions do you have - would you want to be certain of your mortgage payments for a few years - so if rates went up you would not need to worry?

madtaff

yes we both have good credit history, and would prob like a fixed rate for a few yrs so we know exactly how much we are paying.
we have noticed that after the fixed rate has ended that the rates jump up by around 2% this must add quite a bit to the repayment, is there any charges if we were to change mortgage providers again or is this not possible. thanks

herbiesjp

What happens after the fixed rate ends, is normally you go onto the standard variable rate of your current lender, so yes there will be a jump in the rate payable

The exact figures on the fixed rate and on the variable rate will be fully disclosed on any illustration you get

There are some schemes that have extended tie-ins, but you should avoid these as they offer poor value for money. They normally offer a really low rate for a short period, but then tie you in on a high rate for a longer period.

WIth a good scheme with no extended penalties, you will be free to re-mortgage to find a better deal without paying any penalty. The only costs would be the mortgage closing fees

HTH

madtaff

ive just been in touch with london and country(recommended by this site) and they offered me some mortgage advice, portman came out on top as the best provider at 5.29% fixed for two years, nationwide came second with5.83% tho just having read your message i do not know what the rate is after this, im due to view the house on the wkend and hopefully put an offer in.
thanks for all your advice too by the way

Feanor

Hi,

We have just gone with the Nationwide two year fixed deal at 5.83% as FTB. Their deal seemed good for us, no higher lending charge...high street lender, you can port the mortgage if move house or remortgage after the 2 years are up.

The rate after the 2 years i think currently 6.74% but this is variable, so if the bank of england base rate goes up then this will also. Currently it will add £110 onto our payments. So hope that gives you an idea.

If you need any other info about that particular product, just ask cos i have the details here