Is this a good mortgage deal?

drrk

I am new to mortgages and so found myself a broker. I would like to hear your views on whether this first time buyer mortgage is a good deal in the current market.

Rate: 4.2% fixed-term 2 years
LTV: 90%
Income to loan: 5 times
Mortgage term: 30 years
UK status: Indefinite leave (not EU citizen)
Dependents: 1 child

Some have people have said that it's not that great. But I have had difficulty getting 5 times my income and 90% LTV with most lenders.

marathonic

You'll not see the rate on any best buy tables but sometimes it's not about the cheapest rate - rather the rate that's being offered by those lenders willing to lend to you.

The fact that it's five times income with one dependent will rule out a lot of lenders.

The UK status may rule out further lenders - I'm not a broker so am not sure.

drrk

Aha, that's interesting. I was told by my mortgage adviser that not many lenders would lend to me given my circumstances (i.e. 5 times income required on 90% LTV). For the moment, I am trying to get on the ladder with whatever reasonable I can find.

audigex

It's not a great deal compared to most others, but given your circumstances it's probably about right

90% LTV tends to push you towards 4% at the moment anyway regardless of other factors (I think my quote was 3.75% on a 3x salary multiplier at 90% LTV), and your 5x income won't be helping your risk profile even assuming your UK status isn't impacting things.

So yeah, as marathonic says, it's not about getting the best rate on the market, it's about getting the best rate of those lenders willing to take you on.

amnblog

Any product suggestions on here have no validity as there are specific reasons why this lender has been identified by your broker.


Do not try to second guess your broker who has picked this as your best product based on your circumstances.


(I suspect you are a Doctor?)

drrk

But what if the broker is not whole of market, there could be better deals.

amnblog

Are you a Hospital Doctor?

drrk

No I am not a hospital doctor. How is that relevant?

amnblog

Just guessing the product and lender.