First time buyer ( national counties building society )

jhennessy

Hi guys,

New to this forum, but have been reading through and feel you guys may be able to offer some advice.

I am a first time buyer with a 5% deposit. I have had plans to go with nationwide with a rate of around 4.79% which seems to be the cheapest for that type of mortgage. They offer 1000 cash back and help with fees etc.

But thanks to this site I used the mortgage compare tool and national counites rate came through at 3.29%...can someone tell me what I am missing here as Imuch as I have done the research. I feel like I am missing something important.

Thanks for your help

Joe

stator

I thought their maximum LTV was 80% ?Are you sure you entered the details correctly on the comparison website?

Is it showing as a fixed rate deal or a variable?

Senior_Paper_Monitor

You have described their 'family mortgage' but omitted the all important .......


1. Security Account

If a buyer can find a 5% deposit, from savings or perhaps a gift, the Family Mortage allows a family member to provide security for the buyer's mortgage by depositing savings in a Security Account. This money acts as security for the mortgage and reduces the risk, so the Family Building Society can offer a lower rate of interest than might otherwise be the case. This reduces the monthly payments for the buyer while savings continue to earn interest

2. Security through Property

Parents and other family members can help first-time buyers even if they don't have spare cash. If a buyer has the 5% deposit, a family member can give a charge over some of the value in their property. By providing this security, the buyer may be able to get a lower interest rate with reduced monthly payments than might otherwise be the case.

3. Offset account

This allows family members to use their savings to help the buyer without having to 'give' the money to them. If a buyer has the 5% deposit, additional money from a family member can be placed in an Offset Account with us at the start of the mortgage. In doing this, they reduce the amount of the mortgage on which interest is charged by the amount held in that account. Instead of receiving interest on the savings (which is also subject to tax), the benefit is passed onto the buyer by saving them interest on their mortgage. Money placed in an Offset Account also acts as security for the buyer's mortgage and reduces the risk, so the Family Building Society can offer a lower rate of interest than might otherwise be the case.


.... the joys of price comparison sites !!!!!!!

jhennessy

Hopefully this will load for you. But if not the loan value would be 237500 and the house value would be at 250000

moneysavingexpert.com/mortgages/bestbuys