Does this mortgage exist?

Toffee_3

We're off to see a mortgage broker for the first time tonight.

We are FTBs with a joint annual income of £45k and have £10,000 to use as a deposit. We have no other loans but do have a balance of about £2k on a 0% credit card (this balance is being reduced each month not added to, I might add!)

What would like to find is a mortgage:
1. Based on affordability
2. Has no Higher Lending Charge (evil things designed to penalise FTBs I swear)
3. Offers a good 5-year fixed rate deal
4. Allows for overpayments (or perhaps has an off-set facility)

Ideally we'd like around £150-£155k mortgage.

Does this exist?

Thank you!

herbiesjp

There are indeed various options that seem to fit what you are looking for - they don't all have all of the requirements you list so you may need to prioritise as to what is most important.

Toffee_3

It's good to know I'm not barking up a completely ficticious tree then!

I think the things I've listed are in order of importance:

Affordability-based mortgage (otherwise we won't be able to raise the mortgage we need)
No HLC (because I refuse to have ££££ swallowed up just because I don't have a mega deposit)
Fixed-rate deal is the style of mortgage that is most sensible as we are FTBs, but we're flexible over how long the term is.
Overpayments/Off-set - would be nice, but we can still save the money we would use for this elsewhere, it's not like it will go to waste!

donna-j_2

Britannia do a 5-year fixed rate at 4.59%, and they would have given us up to 4 times our joint income. I THINK you can overpay, but you would have to check that. The were offering this on the 4.94% deal a few months ago, which we have booked, but we are going to change it to the 4.59% deal and just put away any money would would have used to overpay if they won't allow it.

I don't think their products are sold through brokers though.

Hugh_Janus

Toffee wrote:

We're off to see a mortgage broker for the first time tonight.

We are FTBs with a joint annual income of £45k and have £10,000 to use as a deposit. We have no other loans but do have a balance of about £2k on a 0% credit card (this balance is being reduced each month not added to, I might add!)

What would like to find is a mortgage:
1. Based on affordability
2. Has no Higher Lending Charge (evil things designed to penalise FTBs I swear)
3. Offers a good 5-year fixed rate deal
4. Allows for overpayments (or perhaps has an off-set facility)

Ideally we'd like around £150-£155k mortgage.

Does this exist?

Thank you!

I'm a big fan of Northern Rock.

No HLC.
5 yr fixed at between 4.89% and 5.29% depending on LTV
Allows overpayments with no limit.

and ............ will lend up to 4.6 X joint income if you have a "high" credit rating and joint earnings of above £32500.

If it's 100% your after the rate is 5.89% - still no HLC - and they will lend even more - 5.1 X joint income.

And if that's not enough - you can have a £1000 cashback (the tie in won't matter (3.5 yrs) as the product carries a 5 yr tie anyway).

Woby_Tide

Only personal opinion but I think Northern Rock suck the big one.


Nationwide have some reasonable fixes, you've no worries on affordabilityf or £155k, they have 10yr fix at 5.19%, 5yr at 4.99%. Overpayments up to £500 per month(3yr at 4.89% and 2 year at 4.69% for comparison). I did try and find some comparisons with the NR ones but there website calculator appears broken. But I'd also say don't be swayed by things such as £1k rebate, you're paying for it whether you think you are or ot. Alliance & Leicester may be another to consider

Hugh_Janus

Woby_Tide wrote:

Only personal opinion but I think Northern Rock suck the big one.


Nationwide have some reasonable fixes, you've no worries on affordabilityf or £155k, they have 10yr fix at 5.19%, 5yr at 4.99%. Overpayments up to £500 per month(3yr at 4.89% and 2 year at 4.69% for comparison). I did try and find some comparisons with the NR ones but there website calculator appears broken. But I'd also say don't be swayed by things such as £1k rebate, you're paying for it whether you think you are or ot. Alliance & Leicester may be another to consider

I mentioned N Rock because it seemed that affordability was an issue, and N R lend quite a bit on their multiples.

The £1000 Cashback - is money for nothing if they're taking the 5 yr fix - as it only has a tie of 42 months.

Another advantage NR have - is their speed compared to Nationwide - Natinwide will take twice as long to get an offer out IMO. (Unless you're an existing NR customer and have to use the Doxford facility.)

Woby_Tide

Hugh_Janus wrote:

I mentioned N Rock because it seemed that affordability was an issue, and N R lend quite a bit on their multiples.

The £1000 Cashback - is money for nothing if they're taking the 5 yr fix - as it only has a tie of 42 months.

Another advantage NR have - is their speed compared to Nationwide - Natinwide will take twice as long to get an offer out IMO. (Unless you're an existing NR customer and have to use the Doxford facility.)

according to moneyfacts.co.uk calculator

NR 5 yr fix 5.29% cost over 5 yrs including £1k cash back £56080
NWide 5 yr fix 4.99% cost over 5 yrs with no £1k cash back £54981

so if NR didn't actually give back the £1k it be over 2 grand more expensive over the 5 years. Guess it depends how you value money in your pocket over a mortgage offer in your hand, maybe thats why NR are so quick so people don't notice the advisor has their hand in your wallet

I'd still advise the OP to look around, the multiples aren't an issue by looks of it, NR, Nationwide, Halifax and others hould all cater for them. Maybe speak to an IFA or have a look throug the links on the mortgage articles on the mai site to find the comparison search engines