FTB looking for a fixed deal - is it worth seeing a broker

keeko

Hello all,

We have a mortgage offer from the HSBC "5 year fixed Special" at 2.48% (we're FTBs, 60% LTV). We like it except a financial advisor we met with this week highlighted us to the fees payable should we need move within the 5 years and the fact we can only overpay up to 20% per month. We are quite keen to overpay when possible while rates are low.

The financial advisor isn't a mortgage broker himself but refers his clients to a broker. He said he didn't think it would be worth trying to beat the deal we have unless we wanted to consider a variable rate mortgage.

Do people agree with the advice we've been given? The deal is the one that comes out top with Moneysupermarket but could we be missing out on a better deal if we just went with HSBC?

Thanks in advance for any help.

Foxy-Stoat_3

How much is the mortgage for and are you likely to move in 5 years?

keeko

Mortgage is for 200k. We think we have found a house we'd be happy on for many years.

Foxy-Stoat_3

So if your not intending on overpaying £40,000 a month, I guess the 20% overpayment isn't going to affect you much, unless you meant 20% of the mortgage payment a month, or a year?

keeko

It's the latter, unfortunately.

Foxy-Stoat_3

Just over pay upto the 20% every month and put the rest in an ISA. I wouldn't of thought this would be a deal breaker, as your fixed rate is pretty good.