Best fixed rate 95% mortgage options?

Lyndsayx

Myself and my husband are hoping to become first time buyers in the next few months and are looking into 95% mortgages. Saving longer for a better rate unfortunately is not going to be an option. We are looking into fixed rate deals as we will know what our repayments will be every month for the length of the fixed period, but I'm wondering how long to fix for and where the best deals can be found? I've spoken with a Yorkshire building society and we have a meeting with HSBC lined up, but I'm really unsure what to do for the best. Has anyone got any ideas or suggestions about where to look please?

wjr4

Find an independent mortgage adviser.. They can search the whole of market for you rather than you having meetings with lots of banks/building societies.. Unbiased.co.uk

foxy-stoat

As above, speak to a mortgage broker rather than seeing high street lenders...maybe see who you currently bank first to get an idea. I walked into Halifax and they declined me, saw a broker and they placed my first mortgage with Halifax...go figure that one out!

For the length of the first term, there are pros and cons for short or long fixes.

For me, 95% LTV I would want to fix it for as long as possible and overpay as much as I could if I was not going to spend money fitting bathroom/kitchen or doing major works. If its a new build then definatley budget and overpay every month.

If I was planning on expanding the family and dropping an income then maybe a shorter fix would be better but still over pay.

The numbers will be scary but make sure you budget and you will be ok.

stator

There aren't that many lenders at 95% so you might just do the comparison manually if you want to save the broker's fee.
Personally I fix for 5 years, but it's up to you what you chose. After 2 years you won't have much equity to remortgage.