Advice needed - mortgage options 90%

Sunny23_2

Hello

My husband and I have just had an offer accepted on a house and so we are beginning the search for a mortgage.
We are second time buyers - currently living with parents and have combined earnings of around £50k and are managing to save around £2k a month.
We are looking for a 90% Ltv with around 30% of deposit being gifted by family.
The property we have is £216k and requires a small amount of modernisation. Others in 'good' condition have sold within last few months for £230k.

We are looking at 2 year fixed options and have so far found the following deals which appear good options -

Skipton 3.99% with no fees and £160 cashback but SVR of 5.69
Or
First direct either 3.59% with £1499 fee or 4.19% fee free both with SVR of 3.69.

What do you think would be best option?

Diffence in payments for fee free options is around £20 per month cheaper with Skipton, however there is quite a difference in SVR.
We would obviously plan to re-mortgate after the fix ends but just worry that should we get stuck on the SVR the Skipton option is quite high! (Although we are thinking prices may continue to rise and our LTV hopefully increase in the two years)

Thoughts and other options if there are any are welcome!
Sunny

Sunny23_2

We are seeing a broker in the morning but would greatly appreciate any individual/independent opinions! Thank you!

ACG

Do the sums over the 2 years - which comes out cheaper/how much cheaper?
You then need to decide whether the saving being with skipton is worth the risk of being stuck with them in 2 years. Only you can really decide that.

The broker unless independent is unlikely to recommend First Direct as they do not deal with brokers.

Personally im a big fan of Skipton, everything is just easy/works with them - which isnt the case with all lenders.

Thrugelmir

Sunny23 wrote: »

We would obviously plan to re-mortgate after the fix ends but just worry that should we get stuck on the SVR the Skipton option is quite high!

Then bear in mind that at some point in the future interest rates will rise. Sub 5% rates may well be as rare as chickens teeth. Correspondingly rising interest rates will create downward pressure on house prices.

So the more equity you can inject the better. While living with parents isn't ideal. It's a great opportunity to build your savings. Something that will pay dividends in the years ahead.

amnblog

Why seek options on here when you are today seeing some one qualified to advise who will know the full situation?

dimbo61

So you have offered £216K on a property subject to SURVEY!
You have 10% deposit saved so £22K which includes 30% from Bank of Mum and Dad!
You will need another £4-6K for fees,legals,stamp duty, searches,moving costs etc
The £194K mortgage at 3.99% over 25 years will cost you £1022 a month for the next 2 years and you will still owe £184K at the end of 2 years so over 85% LTV !!!!
You also stated that the property needs WORK ? so I hope you are good at DIY or can do this in stages ?
Good Luck