FTB mortgage help

catoutthebag

I have tried a couple brokers but none seem to beat comparison sites...though will have to check small print.

It's confusing the plethora out there. ..especially when you factor in cash back and discounted product fees.

I am leaning towards my bank nationwide

This is what I found when borrowing 81k and putting 9k deposit as thr outcome

1) 2 yr fixed. .3.49 then 3.99 reduced fee of 499, payment 405
2) 2 yr fixed. .3.89 then 3.99 zero product fee, payment 422
3) 3 yr fixed. .3.94 then 3.99, reduced fee 499, payment 424
4) 3 yr fixed. .4.24 then 3.99, zero product fee, payment 438
5) 4 yr fixed. .3.94 then 3.99, reduced fee 499 & free standard valuation and free standard legal fees using their conveyancer, payment 424
6) 4 yr fixed. .4.24 then 3.99, zero product fee, free standard legal fees and valuation, payment 438

Overall comparison is 4-4.1%

How long should I fix for?

Can these be properly beaten?

I noticed hsbc coming up best on comparison bit I think with a whopping 1499 product fee.

It's all so confusing :T

Thrugelmir

catoutthebag wrote: »

I noticed hsbc coming up best on comparison bit I think with a whopping 1499 product fee.

It's all so confusing :T

HSBC will require a £50k single salary or £75k joint.

So merely looking at comparison sites isn't as easy as it appears.

catoutthebag

Thrugelmir wrote: »

HSBC will require a £50k single salary or £75k joint.

So merely looking at comparison sites isn't as easy as it appears.

My salary isn't that
I didn't even see that in their small print on thr comparison site details
If true, nationwide ones look good then especially as I'm a current account holder and ftb

andyfromotley

ok, what you need to do is crunch the numbers. There are many sites that show these figures in their comparisons but you can do it manually.

So for the first one - divide the fees by the term 499/24 = 21 add this to your repayment 405+21 =426 That is your monthly cost for this mortgage over the fixed term.

work out the cost of the valuation and legal fees, add together divide by the term and and then deduct from the monthly cost of this product. that will give you a very accurate picture of which is the cheapest.

How long depends upon you. If your circumstances change and you need to sell within the fixed period then you WILL have to pay a fee unless your mortgage is portable, but that will kinda force you into taking the same deal or provider limiting your choice.

Nationwide are obviously a well respected company with competitive products. The best buy will tell you of better deals but you have rightly identified that they often have HUGE fees which won't usually work for someone buying a cheap property like yourself.

It is confusing and unless you love crunching numbers use a comparison site or consider a broker (but there will be a cost in that)

Thrugelmir

catoutthebag wrote: »

My salary isn't that
I didn't even see that in their small print on thr comparison site details
If true, nationwide ones look good then especially as I'm a current account holder and ftb

Lenders have different target markets for their products. So set their criteria accordingly. The one thing they share in common is attracting initial applications. From there they'll weed applications out. Brokers can perform this task for you (at a cost). Alternatively do the leg work yourself though be prepared to put the time in.

catoutthebag

Thanks guys.

I'll probably fix the shortest time then

My future personal circumstances are a bit uncertain like anyone

Say I sell within the 2 years of fixed period. ..what is the penalty?

andyfromotley

It will tell you on the mortgage info section of any product.

A very quick shufty at nationwide and it looks like 2% in the first year and 1% in the second year.

I have a 5 year fix with nationwide and that goes 5/4/3/2/1 over the fixed period. In my opinion i would not pay more than this. Watch out for ones that have 5% at any time within the fixed period for example. Thats a lot!!

This is obviously only my opinion but if you can't be bothered to crunch all of the numbers i don't think you will go far wrong just sticking with Nationwide. True you may not have got the absolute rock bottom price but you definitely won't be getting ripped off.