Swap rates have lost me my product that i was applying for this week..

topcat007

Rollinghills wrote: »

Yes ERC could be a concern, I heard TSB offer a 10y rate that is slightly higher but there are no ERC after 5 years.

Nationwide 10y mortgage can be ported subject to satisfying their lending criteria again.

Although we are FTB we are buying our dream home so we are not thinking of moving for the next 10-15 years.

Yea TSB do a fix and flex which is at 3.14% 60 LTV.

I can not see me wanting to move during the time but wanting to and having to are obviously to very different things.

Due to them being portable as you say what would trigger me having to pay the ERC say on year 4? Would the lending criteria be similar to applying for the first time have to be in a job etc?

topcat007

just found this for anyone who is interested:

http://www.ftadviser.com/2015/03/11/mortgages/mortgage-products/nationwide-cuts-year-fix-but-rivals-stick-with-top-rate-uOfa0ZwHhc4IakXbbFM0BJ/article.html

“They have to keep that rate for existing customers as part of its loyalty guarantee but not for new business. Gilt yields spiked on Thursday, which then reversed on Friday, therefore they might revisit this next Tuesday when they re-look at rates."

ACG

As a first time buyer a 10 year fix should be looked at pretty closely.
If your buying with a partner - what happens if you split up?
Is this your "forever home"? If you want to move your stuck with the lender and if they do not allow you to port when the time comes your stuck.

The other thing is that in 10 years you would expect your house to be worth a lot more and your mortgage to be a lot less, you MAY be able to get a better deal in 5 years for instance?

Also, how much of an impact are these rate changes having? Are we talking a fiver a month or £50 a month?

amnblog

Rollinghills wrote: »

Although we are FTB we are buying our dream home so we are not thinking of moving for the next 10-15 years.

This statement will make long in the tooth brokers like me wince.

topcat007

ACG wrote: »

As a first time buyer a 10 year fix should be looked at pretty closely.
If your buying with a partner - what happens if you split up?
Is this your "forever home"? If you want to move your stuck with the lender and if they do not allow you to port when the time comes your stuck.

The other thing is that in 10 years you would expect your house to be worth a lot more and your mortgage to be a lot less, you MAY be able to get a better deal in 5 years for instance?

Also, how much of an impact are these rate changes having? Are we talking a fiver a month or £50 a month?

Hi AGG,

Thank you for your invaluable advice.

This will be on my own.

I can not see me moving for a long time as i am quite happy with a "basic" house but i guess you can never predict the future my view may well change..

The rates for me on Nationwide make a difference of £20 a month over the 10 year fix at the current rate of 3.39% compared to the 3.04% orginal rate i was looking at. The rates difference between the TSB 3.14 and when Nationwides "original" deal @ 3.04% is a difference of £5 a month totaling £631 difference over 10 years..

I am at the 60% LTV now so would this bit apply much to me, i guess it could depending on the base rate changes?

"The other thing is that in 10 years you would expect your house to be worth a lot more and your mortgage to be a lot less, you MAY be able to get a better deal in 5 years for instance?"

Thank you

--edit

if i got married in 7 years and the wife wanted to come on the mortgage would this count as breaking the contract and having to pay the ERC to do it ?

Rollinghills

amnblog wrote: »

This statement will make long in the tooth brokers like me wince.

Possibly but I don't care. It is a house with no compromise for us and we are extremely picky. 5 bedrooms, 4 reception rooms, double garage, south facing garden, good schools, good commuting. All that for just under 700k. I appreciate we are not typical FTB though. Just hope the mortgage comes through.

ACG

When you said ftb I thought you meant a typically 2 bed terrace or 3 bed semi, not a bloody mansion :P

Sounds like a 10 year fix would not be a problem then - although its still worth considering being tied in for such a long time things can and do change.

If you add a partner it would be a case of applying to have her added - there would be no ERCs

topcat007

ACG wrote: »

When you said ftb I thought you meant a typically 2 bed terrace or 3 bed semi, not a bloody mansion :P

Sounds like a 10 year fix would not be a problem then - although its still worth considering being tied in for such a long time things can and do change.

If you add a partner it would be a case of applying to have her added - there would be no ERCs

I think rolling stones is the mansion , i am the semi ! haha

topcat007

anyone know about DIP and full application same day TSB ? I rang tsb but they didnt know :S

Contemptuous

Did you ring the mortgage telephony number?
Yes, you can do it all the same day provided you have had an offer accepted on the property you wish to purchase.