Mortgage- First Time Buyer

Ben-Smith

Hi Everyone,

I have a question in regards to securing a 10yrs or 5yrs fixed mortgage with Nationwide through 2 different brokers. The monthly repayment is the same amount for the 10yrs and 5yrs fixed mortgage. My question is which is better 10yrs or 5yrs? The first broker is with better.co.uk and no upfront admin cost as they get paid by the mortgage lender.
The second broker is with Allen&Harris and I pay A lifetime transaction fee of £599 is payable with your mortgage application form. This is payable just once, no matter how

many times you move or remortgage your existing property using our services. We will also receive commission from the lender In addition, you will be required to pay an administration fee £99.  My question is does anyone know much about the 2 mortgage brokers, pros and cons on 10yrs and 5yrs fixed deal. Any insight will be appreciated. Thanks!

lindos90

My son was 'encouraged' to see a MA at an EA early on in his property search for a mortgage in principle,  which had similar term as Allen&Harris above. 

If it's with nationwide, your son could get a mortgage in principle, and apply for the mortgage himself and save £600. That's what my son did in the end as there was no particular advantage going through a broker. He decided to go for the 5 year deal after weighing up the pros and cons. It was also fee free due to the amount he was borrowing. Have a look on the nationwide website, it's really easy to apply, they call and arrange an online appointment and go through everything. He got his mortgage offer within a week! 
He also gets £500 cash back after completion too (the mortgage advisor was saying that in effect ment her services would really only cost £99 🙄). Instead by doing it direct he can put £500 towards some carpet! Brokers are good for specialist mortgages and unusual situations, but if the best they can do is recommend a high street bank, there's no reason to apply via them. Good luck to your son, I'm sat here tonight writing a list of bits and bobs to buy my son, and where I can buy them the cheapest (kettle, sweeping brush, ironing board etc 😂)

propertyrental

5 years or 10? Do you have a crytstal ball?

If anyone knew what interest rates would do (or the stock market come to that) in the future, they'd make a fortune. But no one knows.

Yes, professionals make best guesses, but are often wrong.

With 10 years, you get certainty. You know exactly what you'll be paying for the next 1o years, and can budget accordingly based on certainty.

But if interest rates drop at any time in that period, you might be paying more than if you'd fixed for 5 years and then switched to a cheaper mortgage.

And conversely with 5 yeas.

MFWannabe

I have no idea reference the brokers as I don’t know of either 
reference the fixes what are the interest rates on each? Are there any fees for the mortgage? 

What’s your current ltv? If you are 90% then you’re likely to be in a lower ltv in 5 years time and could probably get better rates then 

kingstreet

Avoid estate agency brokers, especially the ones who want to charge £599 "lifetime fee" as the likelihood you will want to tie yourself to them in the long-term may be nil.

Five year/ten year has to be your call. I personally don't understand why anyone would want longer than five as you can't guarantee you will want a mortgage for the entire period which means possible ERCs. Are there any ten year products with only five year ERCs? There were... but that was a while ago.