Post Office 5% Mortgage

Hixxey

Hi all,

Myself and my partner have been saving for a house for a little over a year now. We have just come across a house which is perfect for us for £129k. We currently have £10k saved and are looking at a 5% mortgage.

I saw a 95% LTV mortgage with the Post Office (Unable to post links as I'm new). As this is our first time buying a house we don't have much knowledge of the rates etc so I was hoping for some opinions from people on here.

With £10k deposit I'm hoping we can cover the 5% and any fees. Does this sound reasonable or are we going to have to save for longer to be able to afford a house?

Also, if the Post Office turns out to be a bad choice for a 5% mortgage then can anyone recommend other providers?

Thanks,
Hixxey

stator

Their application process is quick and easy. I would say you have just about enough for a 95% HelpToBuy mortgage, but you won't have much money left over. Their 5 year fix isn't the cheapest on the market anymore though.

Hixxey

stator wrote: »

Their application process is quick and easy. I would say you have just about enough for a 95% HelpToBuy mortgage, but you won't have much money left over. Their 5 year fix isn't the cheapest on the market anymore though.

Thanks for the reply. I've contacted them and have a meeting on Monday.

stator

I stand corrected. Post Office 95% Help To Buy 5 year fix mortgage is the cheapest again by a whopping 0.05%. Although oddly a Virgin mortgage would be 8p per month cheaper despite having an advertised rate 0.04% higher

Thrugelmir

Hixxey wrote: »

With £10k deposit I'm hoping we can cover the 5% and any fees. Does this sound reasonable or are we going to have to save for longer to be able to afford a house?

Much depends on your own financial circumstances. Income, dependants, etc etc. Best to purchase when it's right for you. As the greater the deposit the less you'll borrow.