Advise on mortgage offer + which survery to use

cashbackproblems

dear all


I have just received the below offer through a broker and advised it is the best on the market. I am also being pushed to buy income protection at 18£ pm and will cover for 2k pm in case of sickeness. I have a 12 month policy via work so this kicks in after. I am sceptical whether its worth it?


Property - 2 bed flat 335k.


Virgin Money
3 year fixed 1.84%
Borrowing 251k.
Arrangement fee £995.
Monthly repayments £1049
LTV 75%. Deposit 85k
£300 cash back on completion


Salary 54k. Single applicant. No financial commitments or debts. 2k interest free CC debt but advised this is ok.


So the basic mortgage company survey (just looking from outside) is £275. A homebuyers report is £510. Given the cashback is it worth doing a homebuyers report? This is a lease hold building.

Mrs36

What age is the property, and from your own viewing how do the communal areas look (well kept, untidy, in need of decorating etc?)

Futuristic

If you want income protection then do your own comparison:
http://www.gocompare.com/income-protection/
http://www.moneysupermarket.com/income-protection/

cashbackproblems

Mrs36 wrote: »

What age is the property, and from your own viewing how do the communal areas look (well kept, untidy, in need of decorating etc?)

the block is around 70's


it is in need of decoration e.g. corridors/communal windows but not overly scruffy/eye sore.


There is a cleaning rota which shows a cleaner coming weekly.


management company: Northleach Property Management Limited, Bromley.

cashbackproblems

Also is it worth going for a 30 year mortgage (£911 pm) or a 25 year mortgage (£1049). I realise 30 year = more interest, but I don't intend to stay here forever and can overpay by 10% per year?

xyz123

cashbackproblems wrote: »

Also is it worth going for a 30 year mortgage (£911 pm) or a 25 year mortgage (£1049). I realise 30 year = more interest, but I don't intend to stay here forever and can overpay by 10% per year?

As long as you ensure that you do make overpayments and then you reevaluate the term when remortgaging it makes no difference. We did exactly that. Got mortgage for 25 years and after 5 years reduced term to 16 (from 20) as we r more comfortable with our outgoings now than 5 years ago (touch wood)