mortgage advice??

dave1988

so am going to my local bank(barclays) to see what sort of mortgage i can try to get my house i want is 65000 and would ideally like to borrow 50000 im after a fixed rate mortgage what sort is better to have and also what % am i looking for??
thanks

Yorkie1

Borrowing £50K on a £65K purchase price is 77%, so you're looking at a mortgage in the banding of up to 80% loan to value (LTV).

Why are you going to your bank? They are unlikely to offer the best deals. Do you have any credit problems? Missed payments? Defaults? Overdraft usage? Pay day loans?

As for length of fixed term, it's up to you. Shorter periods give you more flexibility but you will have remortgage costs sooner than if you took a longer fix.

Don't forget to budget for costs such as mortgage application fee (can often be £1K-£1500 if you're not careful), survey (£5-600), solicitors fees (up to £1K) and a reserve because there will ALWAYS be unexpected costs once you move.

dave1988

thought it would of been easier to be honest to go to my bank ive always banked with and no owe nothing at all on anything and no debt whatsoever thingis ive seen barclays have a 5 year fixed loyalty mortgage at 3.69% and thats borrowing 80% and 500 application fee which doesnt sound to bad? plus after that I'm still left with a good sum of money

gazter

dave1988 wrote: »

thought it would of been easier to be honest to go to my bank ive always banked with and no owe nothing at all on anything and no debt whatsoever thingis ive seen barclays have a 5 year fixed loyalty mortgage at 3.69% and thats borrowing 80% and 500 application fee which doesnt sound to bad? plus after that I'm still left with a good sum of money

Always believe in testing the markets, even if you intend to go with a bank, have a chat with a broker, see what they have to offer. It is rare that existing customers of high street banks get the best deals.

witchy1066

totally agree with the above , we thought it would be a good idea to go with our bank until we spoke to a MB that is, she has found us a much better deal,and believe me our case certainly isn't straightforward
ok it hasn't been accepted yet (everything crossed )
but I will say its more than worth getting a broker
also its not always the easier option to go to your bank, some banks still live in the dark ages

dave1988

Where is the best place for a broker? Also how much do you pay for them?

dave1988

Anymore advice what I should do?

vl2588

Why don't you read the MSE advice on buying houses?