Mortgage Offer

cee2

Hello everyone.
Hopefully someone can offer advice or an opinion. We want to buy a house at £250000 with a deposit of £75000. Our existing lender turned us down as I only have 12 months trading accounts and a lage default of £19000 (disappears in Feb 08). I went to see their adviser who put it to the underwriters as a special case. They have come back and offered me the £175000 mortgage at 6.99% fixed for 5 years with no fee.
Excuse my ignorance but is this a good deal?

luckyfool

cee2 wrote: »

Hello everyone.
Hopefully someone can offer advice or an opinion. We want to buy a house at £250000 with a deposit of £75000. Our existing lender turned us down as I only have 12 months trading accounts and a lage default of £19000 (disappears in Feb 08). I went to see their adviser who put it to the underwriters as a special case. They have come back and offered me the £175000 mortgage at 6.99% fixed for 5 years with no fee.
Excuse my ignorance but is this a good deal?

Depends on whether you want a 5 yr fixed rate? However assuming you are trading 12 months and can prove it, want self certification and your credit history is as described, then with that kind of deposit you could get 6.25% fixed for 5 yrs from Accord Mortgages (Yorkshire Building Societies broker arm). On a short term 2 yr fixed rate you could get 5.80% these products would carry 995 (5yr fixed) and 1495 (2 yr fixed) arrangement fees which could be added.

Obviously you would need to go through a factfind process with a broker to ensure that these (or other products) are suitable and available for you.

cheers

Joe