95% LTV mortgage- looking to compare notes!

finanegnome

Hi all,
We are currently going through a broker for a 95% LTV mortgage for around the 350k mark (London),

Our broker came back with the following options:
Product Interest Rate
2 year fixed rate 2.77%

5 Year fixed rate 3.09%

2 year discounted variable 2.55%

Is anyone else in a similar position? What rate did you get?

A quick search on compare the market for mortgages suggests the 2 year fixed should be around 2.67% and the broker is currently not accessing the best deals.


Interested to hear your thoughts and to receive any advice you might have,

comeandgo

Why do you need a broker at all? I've never used one, did all the hunting and paperwork myself.

finanegnome

I work ~70 hours a week so don't have a bunch of time to dig myself. Plus most sites (including this one) recommend using a broker as they often have access to deals that you and I would not.

sillyhilly

We had an online broker which found us decent products, and had to see another broker through our estate agent (Countrywide).

We chose the 5-year fixed, given that rates are so low and given the uncertainty and future events, we wanted some consistency. However this is entirely personal preference.

We were swayed by the 2-year fixed through the Countrywide broker given that monthly repayments were so low, however once remortgage fees are factored in, and consideration of the fact that brokers may have a vested interest in you having to remortgage in such a short period of time, we decided against it.

It's entirely up to your personal circumstances though. And I would recommend you discuss with several brokers, or DYOR.

getmore4less

95% LTV you need to be looking at the next change when your LTV will be better.

that will depend on information you have not provided.

A lender with a history of decent retention deals at your target LTV for the timing of your fixed term may be worth a 0.1%(£30pm) higher rate now.

Brock_and_Roll

If the OP is that busy then £600 of extra interest over 2 years i.e. 2.77% v 2.67% is a reasonable price to pay for not having to do any of the work which on a big 95% LTV at the fag end of the London property boom surely can't be a walk in the park from an underwriting perspective.....?

Lokolo

Brock_and_Roll wrote: »

If the OP is that busy then £600 of extra interest over 2 years i.e. 2.77% v 2.67% is a reasonable price to pay for not having to do any of the work which on a big 95% LTV at the fag end of the London property boom surely can't be a walk in the park from an underwriting perspective.....?

The OP posted on Reddit as well. The deal the OP found had a larger arrangement fee so it actually works out cheaper to get the 2.77%.

finanegnome

Brock_and_Roll wrote: »

If the OP is that busy then £600 of extra interest over 2 years i.e. 2.77% v 2.67% is a reasonable price to pay for not having to do any of the work which on a big 95% LTV at the fag end of the London property boom surely can't be a walk in the park from an underwriting perspective.....?

I think this is an unfair attempt to summarise the situation. The mortgage is incredibly affordable, and we have opted to get a 5% mortgage now and overpay it as we can afford it. According to my calculations this is a lot more cost effective than renting for another year and saving up to get a 90% LTV.

getmore4less

Given you provided hardly any useful information any comments will be speculation.

If you have worked out it is cheaper than buying but are your calculations correct?

finanegnome

getmore4less wrote: »

Given you provided hardly any useful information any comments will be speculation.

If you have worked out it is cheaper than buying but are your calculations correct?

What information would be helpful?

getmore4less

Try
The full details of each deal.

How you worked out buying IS cheaper than renting.