What is the lowest amount you can get a mortgage on

blinko

Hi All,

Just wondering...

What is the lowest amount you can get a mortgage on...

Also what do you guys recommend when nearing that low amount, to just go on the SVR or maybe a fixed...?

Cheers

kingstreet

What's the purchase price of the property and how much do you need to borrow?

Different lenders have different minimum loans, some have very low minima and some have none.

Your rate choice is down to your preference.

blinko

purchase price is £190k and mortgage left is between £40k-50k will have to ask my friend to clarify the exact amount left, I'm hoping this will be enough....

kingstreet

I thought you were going to say £5k/£10k.

£40k+ will not be below many lenders' minima.

blinko

kingstreet wrote: »

I thought you were going to say £5k/£10k.

£40k+ will not be below many lenders' minima.

Cheers, the main problem I have is the person is not financially aware and it can be a struggle to get them to listen to the basics sometimes.

BUT a threat I thought they might be exposed to is being stuck on a high SVR for 30k say which due to their age would upset them quite a lot. As touched on before their lack of financial awareness means they get caught off guard a lot...

kingstreet

I'd suggest a lender with a "normal" SVR and a history of making decent customer retention deals available, so that don't need to think about a remortgage.

Lower mortgage amount is best suited to a low/no fee, free valuation/cashback-type product. The rate will be higher as a result, but the overall cost will still be lower than a lower rate product with fees...

blinko

Thanks Kingstreet,

What do you think about something like a 5 year fixed to help them....

kingstreet

See post #2.

Rate choice is down to customer preference/circumstances and as an advisor, I would not make such a suggestion without first being able to satisfy the "know your customer" rules.

Dave_the_Ginger_Cat

I'm not a broker, so am offering this as a thought - do make sure that any fees outweigh the savings. On values of mortgages as you suggest, sometimes the savings don't outweigh the fees