FTB mortgage - need 5x salary

emujuice

Hi,
I'm looking for a FTB mortgage that is around 5x my salary (I earn £27,500 and need to borrow £130,000, I have around £18-20,000 deposit). My husband has a bad credit history (long story with HSBC cocking things up) and he's also looking for work, so it seems best to just borrow in my name for now, hence trying for 5x mortgage.

My broker has suggested an offset mortgage with Intelligent finace at +0.79% (lifetime tracker) or Bristol and West at +0.9%, again offset and lifetime tracker. Both have fees of around £999, plus the usual extras.

Looking around there seems to be much better deals that this, but of course I have to convince them to lend me the money (my credit history is perfect apparently).
HSBC seem willing to lend the money, and have special discount tracker for 2 years at 5.19%, which has some overpayment facilities and fees are similar to those above.
Halifax are also willing to lend me the money (and have done the full credit search etc... to confirm this) they have one at +0.45% for 2 years.

I haven't asked many more banks yet, as I don't want to have lots of credit searches on my name, but I needed an agreement in principle to show the vendor of the house we want.

What I want to know is should I go for a cheap deal now and plan to remortgage in a couple of years, or go for the lifetime tracker, which means I don't have to worry to much. my feeling is cheap now, as I keep and eye on my money and don't mind hunting for a better deal. however, remortgaging might cost money? right?

The broker is my father-in-law, and although he doesn't mind me having ask around the banks I'm currently with, he might get bit upset if I get another broker or turn round and say the ones he's suggesting are rubbish.

I'd appreciate someone's advice on which way to go now!
Thanks in advance.

Conrad

The dilema for us brokers is we just do not know who will lend you the amount you require without undertaking time consuming agreement in principle excercises.

IF is a good longer term deal. If you want a cheap rate maybe C & G as they can offer high multiples. Accord might be worth a look. I never use A & L as the service and online systems are bottom of the pile.

The B & W and IF deals will almost certainly work out cheaper over the medium term by virtue of long term lower rates as opposed to 2 or 3 year teasers which need replacing which will involve fees and interim interest.

AndrewSmith

I suspect that in today's mortgage market with adverse credit history and needing 5x salary I think you will struggle to get anything decent.

Also, even if you do not apply for the mortgage jointly your husband will still need to be named on the form because

a) You have a financial association with him that will show up on a credit search

b) He will (I assume) be living at the property with you

His bad credit may therefore still impact any lending decision even though you may 'apply' for it on your own.

Edit: Sorry Conrad, got in there same time as you :beer:

emujuice

thanks for that.
I do trust them, but I guess we have a better idea of what we're likely to end up with in savings in the next few years. after buying the house we'll have none, plus it needs a new kitchen etc..., so my feeling is get something cheap and affordable now (ie in terms of monthly payments - but i'd like to avoid interest only, although i know that would make it cheaper initially), and then when we're a bit more settled and OH has a job, we can get a better mortgage for the longer term. but thanks very much for explaining where they're coming from.
I also assume that it does make sense for me to phone the cheaper companies myself, since it is time consuming and they won't do that for me.
Cheers

emujuice

ah, thanks for the info on the credit history. Perhaps it's worth persuing the HSBC one then, as they're the ones that have affected it (we're in the process of trying to get them to remove the bad debtor marks on his history, since they are their fault and they've admitted to it (they had said they'd removed them, but they haven't, we've only just found out). OH is reluctant to use hsbc, because of this bad experience (twice), but my feeling is that mortgages are another part of the bank entirely, and may be more favourable because they can see it's their fault...