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Been offered this mortgage. Opinions please
Heisenberg87_2
Posts: 85 Forumite
Me and my partner are looking in the near future of buying a property but my partners new job is fixed term and only has 7 months left. We have no idea if she will stay on beyond this point as it is maternity cover. We have a friend who is a broker and has said Halifax are the only ones who will touch us as my partner has been in the same industry for 4 years. Here said they can offer us this;
RATE
4.39% fixed for 2 years
Early redemption charge equals 3% year 1 and 2% year 2 only
MONTHLY REPAYMENT
£1,339 over 25 year's
SETTING UP COSTS
Lender arrangement fee is £999 (added to loan)
Valuation fee of £430
Legal Fee TBC
This was based on a £200,000 property
Is this an ok deal? We will easily be able to pay of the monthly repayments as we both have a monthly income of £4,000
Are only other option is to wait until the 7 months fixed term is up and she gets a new job. Would like to hear anyone opinions or who could give us some advice...
RATE
4.39% fixed for 2 years
Early redemption charge equals 3% year 1 and 2% year 2 only
MONTHLY REPAYMENT
£1,339 over 25 year's
SETTING UP COSTS
Lender arrangement fee is £999 (added to loan)
Valuation fee of £430
Legal Fee TBC
This was based on a £200,000 property
Is this an ok deal? We will easily be able to pay of the monthly repayments as we both have a monthly income of £4,000
Are only other option is to wait until the 7 months fixed term is up and she gets a new job. Would like to hear anyone opinions or who could give us some advice...
0
Comments
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Do you not trust your friend?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
You didn't say what the LTV ratio is?
If it's 90% that's a reasonable rate.Changing the world, one sarcastic comment at a time.0 -
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Looking around it does seem a little high for a 2 year fix. But if it's your only option and you want to buy a house, go for it. It's not a rip off. In 2 years you'll be in a better position hopefully and will have more choices.Changing the world, one sarcastic comment at a time.0
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Halifax are the go to lender for a lot of brokers, they are great on contractors especially fixed term. Would actually work out cheaper to go with Halifax's 4.79% with a lower fee. Not sure where the monthly payments have been calculated as £200,000 pp with £180,000 repayment over 25 years is £989.
Santander and Nationwide will also look at short term contractors providing there is some history0 -
Don't assume your circumstances will be better in 2 years.
Any other options like 5 year or tracker you don't need to fix.0
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