Best mortgage for 12% LTV?

Wizzbang · 24 August 2014 at 10:58PM

Hi,

In the process of buying my 3rd property, but first one I've ever needed a mortgage for. Little bit confused by the dirth of options. I'm aware that I will already qualify for the best rates with such a low LTV of 12%, but is there anything out there currently that will be a better/ the best option? I know I shouldn't be wasting any money paying fees. Looking to borrow £40,000 over 10 years. Must have option to pay back early/ overpay, as hoping to pay it back in half the time, but the banks will never agree to that on paper.

Wondering if off-setting might be a good option- as I'd like to keep about £30,000 in savings. Currently have savings with Santander. Was looking at getting mortgage with Lloyds as bank with them for main account.

Good advice would be appreciated. Is it worth paying to see an IFA for such a small mortgage?

Tahlullah · 24 August 2014 at 11:02PM

First Direct do fee free offset mortgages that allow full repayment as and when you wish without penalty.

Wizzbang · 24 August 2014 at 11:05PM

Thanks, just had a look but a bit in bold text on their page says-
Sole applicants must have a minimum salary of £50,000. Joint applicants must either have a minimum combined salary of £75,000, or one party have an individual salary of £50,000 or more.

Not a chance, my husband is on a basic teachers salary! So I guess we couldn't get an offset mortgage with them at all? We had one agreed in principle with Lloyds, but it has expired due to the length of time it took to find/ sell.

Tahlullah · 24 August 2014 at 11:10PM

I have a mortgage with them and can assure you I do not earn that much! I guess if you bank with them and have more than one product, they look past that single criteria. Sorry, can't be of more help.

Wizzbang · 24 August 2014 at 11:11PM

Tahlullah wrote: »

I have a mortgage with them and can assure you I do not earn that much! I guess if you bank with them and have more than one product, they look past that single criteria. Sorry, can't be of more help.

Thanks, might be worth investigating. I'm not averse to moving my banking to them- as they have very good customer reviews, as Martin frequently points out in the newsletter!