Mortgage 5% rate

[Deleted User]

Hi all, I know there will be experts here so just wanted to run this past you please.

I had some missed payments (no defaults) in 2015, around 3 and then carried on paying normally. The missed payments were due to careless behaviour.

I have credit card debt of 17k, which I pay.

I have applied for a mortgage and have been offered £150K on 5% rate fixed for 5 years.

It's for the remaining shares of our shared ownership house. We have to pay rent - a lot.

What do you think about this? We will be paying around £100 than we do now with rent and mortgage combined.

Are we being ripped off or is this normal for us in terms of history and situation.

Thanks again!

Manchester_123

Hi there,

Great news that you have been offered a mortgage given the missed payments and CC debt. Please can I ask what your loan to value is?

Thanks

[Deleted User]

85% , thank you. I'm seriously worried about affordability because I will have no savings if I continue as a back up. But I don't want to loose my chance, what if my employment changes or things like that, ah what to do.

Dandytf

assj wrote: »

85% , thank you. I'm seriously worried about affordability because I will have no savings if I continue as a back up. But I don't want to loose my chance, what if my employment changes or things like that, ah what to do.

Rate wise 5% is acceptable, I have 5.19% fixed since 2012 due to swap Aug17.

I cannot comment if you are seriously concerned about affordability, I'll leave that for experienced MSER's.

r192

Either go with the 5 year rate at 5% or look on the company websites see what other terms they offer e.g 2 year and what the rates are.

If suitable for you speak to the mortgage company about this as in 2 years your off may be lower loan to value and therefore in 2 years may be eligible for better rates.

I always discuss both sides of the coin with my clients so they are aware