House agreed, thinking of buying, mortgage???

missma

Hi

We have currently agreed our house sale and will owe approximately 6k in mortgage.
We will probably put 10% down on our next purchase, we want to purchase in Belfast. We both have excellent credit history though one of us has one late payment recorded in 2010 on Equifax file and other 2 in 2008 and 2009.

We are looking at Mortgage options, we are probably thinking of purchasing up to a max of 170k. We went to see a mortgage advisor and were given some options. We probably want to fix for 2 -3 years. She felt we should not risk some lenders incase we were rejected as they do full search and would affect credit rating if rejected. She suggested possibly applying for Halifax at 4.49% I think 2 year fix fee of £499.

Nationwide and Progressive were also suggested.

Have looked at Moneysupermarket myself and saw HSBC with better rates.

Any advice welcome or information where to look at rates etc. Do not think all lenders lend here.

Thanks

dimbo61

Yes HSBC may well have better rates but they also have tougher lending policy.
Are you saying once you have cleared the mortgage on your current property you will only have a 10% deposit ? The more you can put down the better.

missma

Hi, yes deposit will probably be about 10%, as we currently have about 28k in saving we will owe nearly 6k to current mortgage, this money needs to cover legal fees, stamp duty, etc. Our earnings are about 28k and 26k though on a yearly basis usually a bit higher with overtime etc.

dimbo61

Why just a 2 year fix?
If rates do not move for 12/18 months you mortgage could drop onto the SVR just as rates start to climb.
Now with a £150K mortgage you will have paid little off in 2 years !!

missma

We may well go for a longer deal we also looked at three year and five some are more limited with only 10%.