Good first time mortgage rate

Dannyryan87

Hi all,

Me and my partner are ready to buy our first home and have found a place we like. Problem is the lack of mortgages out there for a 90% LTV mortgage due to the market slowly reopening. 

Some of the only lenders are HSBC and First Direct.The best rate is a 1.89% initial rate, £999 product fees. It is a 2 year fixed mortgage. 

Of course we will need to phone and get this deal direct through HSBC, but assuming we are able to get this, is this seen as a good deal? It’s difficult to check what mortgages existed pre-COVID-19 and we are unsure of whether to wait to see if better deals become available.

I guess I’m asking what is a good rate for a 2 year fixed mortgage with a 90% LTV?

Shelley_SJFS

Hi Danny, we are Mortgage brokers and there a few 90% deals out there, here is one from Accord A two-year fixed rate at 2.32% at 90% LTV with £495 fee, £500 cashback and free valuation, this is a good example of a different product. The deals you have listed are competitive. You could wait and see what comes out but our experience is the lenders are being extremely cautious, we hope things will change once furlough is complete. Hope that helps

getmore4less

Depending on mortgage size the 2.14% (without the booking fee) rate may be better the breakeven is going to be over £200k to be paying the fee. 

dimbo61

The market is changing daily so you need to shop round once you have found a suitable property.
Maybe use a mortgage broker to help search the market and help with the application.
You will be using a solicitor and a surveyor won't you ?

haras_n0sirrah

Speaking to lenders I don't think 90% will be mainstream anytime soon. They seem to pop us as weekly specials and then disappear a few days later. HSBC has been the only consistent one but getting it is tricky as they are being very picky and only releasing a relatively small numer of 90% mortgages a day (it is a bun fight trying to get one from the daily allowance)
Maybe do a calculator to check how much you can borrow (or ask a broker to as we have hsbc and the other lenders as well) and also check there is nothing concerning on your credit report and only apply once you have found a property as the lenders are constantly changing at that end of the market depending on how busy they have been

Shelly_SJFS  to post here as a broker you need to put that you are a mortgage broker in your signature otherwise you will be kicked off the forums quite quickly. In case you are not aware of the other rules you cannot approach forumites but if anyone pm's you asking for help that is fine to respond to.

Shelley_SJFS

Shelley_SJFS said:

Hi Danny, we are Mortgage brokers and there a few 90% deals out there, here is one from Accord A two-year fixed rate at 2.32% at 90% LTV with £495 fee, £500 cashback and free valuation, this is a good example of a different product. The deals you have listed are competitive. You could wait and see what comes out but our experience is the lenders are being extremely cautious, we hope things will change once furlough is complete. Hope that helps

Apologies I am just trying to work out how to do my signature, but I did say we are mortgage advisers. This post is genuine and not spam, just to you know

Sistergold

Shelley_SJFS said:

Shelley_SJFS said:

Hi Danny, we are Mortgage brokers and there a few 90% deals out there, here is one from Accord A two-year fixed rate at 2.32% at 90% LTV with £495 fee, £500 cashback and free valuation, this is a good example of a different product. The deals you have listed are competitive. You could wait and see what comes out but our experience is the lenders are being extremely cautious, we hope things will change once furlough is complete. Hope that helps

Apologies I am just trying to work out how to do my signature, but I did say we are mortgage advisers. This post is genuine and not spam, just to you know

If you go into your profile you can add a signatures