Mortgage offer for first time buyer

Onebrokelady

Hi my daughter is looking to buy a quarter share of a shared ownership flat. The quarter share would be £50,000 , the company selling it have also organised the Mortgage via a broker. They  have found her a five year fixed rate deal at 6.4% which she can afford but she isn't sure if it's a good deal and is worried about being stuck on this rate for 5 years and then the interest rate dropping. I'm seeing better deals on here and I'm not sure if she should go for it or not, is there anyone here who could advise please

K_S

@onebrokelady If you don't mind me asking, where have you seen "better deals" and you sure that they are for shared-ownership mortgages?

Assuming that the broker is a whole-of-market one, the mortgage they've recommended will be the most cost-effective product that meets your preferences, requirements and circumstances. If you aren't sure about 5yrs vs 2yrs, the broker should be able to talk you through the pros and cons of both options so you can make a more informed decision.

If for whatever reason you doesn't trust the broker's recommendation, then your best option is to speak to another whole of market broker and then compare the recommendations they've made. The MSE guidance here will help you find one.
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Onebrokelady said:

Hi my daughter is looking to buy a quarter share of a shared ownership flat. The quarter share would be £50,000 , the company selling it have also organised the Mortgage via a broker. They  have found her a five year fixed rate deal at 6.4% which she can afford but she isn't sure if it's a good deal and is worried about being stuck on this rate for 5 years and then the interest rate dropping. I'm seeing better deals on here and I'm not sure if she should go for it or not, is there anyone here who could advise please

Onebrokelady

K_S said:

@onebrokelady If you don't mind me asking, where have you seen "better deals" and you sure that they are for shared-ownership mortgages?

Assuming that the broker is a whole-of-market one, the mortgage they've recommended will be the most cost-effective product that meets your preferences, requirements and circumstances. If you aren't sure about 5yrs vs 2yrs, the broker should be able to talk you through the pros and cons of both options so you can make a more informed decision.

If for whatever reason you doesn't trust the broker's recommendation, then your best option is to speak to another whole of market broker and then compare the recommendations they've made. The MSE guidance here will help you find one.
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Onebrokelady said:

Hi my daughter is looking to buy a quarter share of a shared ownership flat. The quarter share would be £50,000 , the company selling it have also organised the Mortgage via a broker. They  have found her a five year fixed rate deal at 6.4% which she can afford but she isn't sure if it's a good deal and is worried about being stuck on this rate for 5 years and then the interest rate dropping. I'm seeing better deals on here and I'm not sure if she should go for it or not, is there anyone here who could advise please

Hi and thanks for the advice,I saw the better deals on here but I forgot to factor in that they might not be suitable for shared ownership properties. She has spoken to the broker again and they have explained things more clearly now, she also spoke to a friend who is a financial advisor so has been reassured 😊