:: First Time Buyer - About to get a Mortgage :: HELPP

suby786

Hey all

Been on the site reading for a while now, but as i have made an offer on a property, and they accepted, i feel i should ask a couple of burning questions - hope you all can help.

She accepted the offer and now she has found somewhere as of today, so the mortgage advisor (independant but works for the agent that is selling the house) wants me to come in tomorrow to get my mortgage ball rolling... but im a bit weary...

1stly - interest rates planned to go down next thursday, how quickly would this filter thru to NEW rates? if its a case of weeks i cant hold the process because of this. I was going to go for a 2yr fixed (need to remortgage after 2yrs) @ 5.88% with coventry, worked out the cheapest compared to others over 2yrs (TRUE COST) as it has no arrangement fee or survey costs... but now i heard you can get CAPPED TRACKERS which are capped at 5.89% or something... bit of a no brainer it seems, although arrangement of £600 and survey costs means its £1000 more expensive up front... how can i calculate if its worth doing this IF the rates went down for say 6months then back up to the capped rate for the other 1.5yrs... wud i save the extra £1k?

2ndly... if i go ahead with the MIP tomorrow, bare in mind its RIGHT AT THE START of the process (and the chain is me, her and thats it) would you recommend to delay the MIP just in case? or shall i go ahead and get the ball rolling? apparently I can back out of the lender if another lender is giving me better rate be4 we exchange?

Any help would be greatful..

house is £158,000 and i have 10% deposit...

dimbo61

is the independant mortgage advisor a whole of market advisor ??
will he or she try to sell you life assurance, buildings / contents insurance ,
PPI and many other policies !!
first direct are offering 4.75% fixed offset for 2 years with £1500 fees
the coventry capped would need 1.25 off there 5.89 % to better that !!
why only 2 years ?? check the WHICH website for TRUE COSTS of mortgages over 2 years , consider longer term 5yrs & offset GOOD LUCK

poppy10_2

suby786 wrote: »

the mortgage advisor (independant but works for the agent that is selling the house)

So not independent then?

suby786

thats what i thought... he says i'm his client, but works for the agent.. AND if i find a property elsewhere with another agent, he can still do the mortgage... does that make him independant?

He DOES look at the whole market...

I have just been 2 see another guy, independant defo...

he said go on a tracker (say for 2yrs) and choose 1 with a low early redemption (charge 2 leave be4 end of term) so basically follow base rate, after a few cycles of it goin down (they sed at least 3 times this yr) so when it gets to 4.75% (SAYYY) then leave early so pay the £125 charge, and go onto a fixed rate at that point in time...

I want to go on the first direct 5.25% fixed BUT they will only let me borrow 2.75 times mine and my partners income, where i need 3.4 so first is out the window~

the best offer he showed me was a 0.69% above base tracker... with the £125 leaving charge - so thats 6.19% at the moment, going down to 5.94% in feb (we hope) and repayments of £848

what do you suggest i do?

suby786

just rang first direct and they wont lend to me as they will only lend up to 80% of the price of property, and i need a 90% LTV... so first is out the question

WHat do you all think i should do? fix it at 5.66% or tracker it for a year at least

dimbo61

You want to buy a home ? you need to get a mortgage from somewhere !
you have a 10% deposit ( well done) and so far you have tried 2 mortgage
advisors who both recomend 2 year deals WHY cos you will have to re-mortgage again in 2 years at more cost solictor,survey,mortage fees, advice
fees etc . are you going to stay in this house for the next 5 years at least ??? try a few more lenders most are freephone numbers and search the market yourself, check the best buy tables in the papers , GOOD LUCK

Conrad

Most independant advisers have tie - ups with networs and or packagers which themselves have restricted lender panels but enough to get away with implying they are independant.

Just make up your mind not to sign there and then. Dont let a salesman dominate your Human right to think things over.

INSURANCE - a truly dedicated mortgage specialist has no time for peddling or administering insirance policies. Arrange your own separately and never allow any form to be signed until every page is FULLY 9AND I DO MEAN FULLY) complete.

Salesmen want thier insurance commision so will often advise you 'not to mention that childhood illness', but beleive me if you claim every part of your medical and family history will be examined minutely.

suby786

ive actually been to say 6 brokers in total, maybe 7. most say fixed, some say tracker all the way, then revert to fixed during the time (with low redemption charges) but other brokers say thats bad cuz u starting a new term and as its a 1st time buyer, ill pay paying shed loads of interest at the start anway so wont be eatin in to the capital.

nationwide have a tracker thats decent 0.18% above, with the option to switch to fix during the term (but i have to pay the arrangement fee when i do which could be > £500) so would it be worth it? say interest rates went down to 5% so i'd be paying 5.18% for a bit, and then back up, but at that time, go for the fixed, is it worth the £500 id need to pay to get the fixed nationwide deal?