between HSBC v's Coventry building society

keepsim

Hi

I'm first time buyer and new to this forum as well. I'm bit confused about picking up the right mortgage and thought the experience guys could guide me.

I need to pick up between HSBC v's Coventry building society.

Here are some stats 25yr term
HSBC
2yr fixed ~ 2.39%
Booking + Val fee =448
Overpayment allowed ~ 20%


coventry building society
2yr Fixed ~ 2.49%
Booking +Val fee = Zero
Overpayment allowed ~10%

Confusion

a) I have no experience of dealing with Building Society vs I bank with HSBC, are there any pro/cons of building society over banks

b) If I compare just for a 2 yr period HSBC is about £300 more expensive, but it gives me flexibility to overpay 10%.


c) I dont want surprices/hassales and prefer easy dealing so considering me as first time buyer which is better deal ?

I know this for many could be no brainer but advices with reason would be helpful.

many thanks

Hello123_2

keepsim wrote: »

Hi

I'm first time buyer and new to this forum as well. I'm bit confused about picking up the right mortgage and thought the experience guys could guide me.

I need to pick up between HSBC v's Coventry building society.

Here are some stats 25yr term
HSBC
2yr fixed ~ 2.39%
Booking + Val fee =448
Overpayment allowed ~ 20%



coventry building society
2yr Fixed ~ 2.49%
Booking +Val fee = Zero
Overpayment allowed ~10%

Confusion

a) I have no experience of dealing with Building Society vs I bank with HSBC, are there any pro/cons of building society over banks

b) If I compare just for a 2 yr period HSBC is about £300 more expensive, but it gives me flexibility to overpay 10%.


c) I dont want surprices/hassales and prefer easy dealing so considering me as first time buyer which is better deal ?

I know this for many could be no brainer but advices with reason would be helpful.

many thanks

How much are you borrowing and what is your LTV?


It really depends what YOU want from a mortgage - Do you plan on making overpayments during the first 2 years? If so, how much are you planning to overpay?


If you have a lot of money spare each month have you considered a shorter term mortgage ie 20 years?

keepsim

Hi

80% LTV

I might consider making overpayment of upto 80% but then like you said I could choose 20yr term to begin.

Given the details I have provided which mortgage should I go for ?

I have never dealt with BS before.

Hello123_2

keepsim wrote: »

Hi

80% LTV

I might consider making overpayment of upto 80% but then like you said I could choose 20yr term to begin.

Given the details I have provided which mortgage should I go for ?

I have never dealt with BS before.

Ok, let's start from scratch.


How much do you want to borrow and how much deposit do you have?


Personally I would not worry about the fact one is a bank and one is a BS.

keepsim

property 165, borrow 132 , 33 deposit

Hello123_2

Ok, well compare the monthly payments and the term:


http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml




I guess it depends on how badly you want the overpayment facility? eg how much 'spare' cash do you have each month?


If you have quite a bit spare you could look at an offset mortgage.

keepsim

Offset sounds like a good option but as it currently stand I wont have enough saving left after putting deposit But I would again start saving.

from my quick little research I see Coventry booking fee is quite high £800 for ofset mortgage and HSBC dont offer.

So finally it look like Coventry is better among the two ?