First time buyer

missmom

We are looking for a 90% mortgage. As we are more concerned with stability we are going for the fixed rate (possibly between 3 and 5 years; most likely go for 3).

The question is which provider should we go for? We both have good credit ratings. We've found the house and our offer has been accepted. We have a mortgage in principle from our bank, HSBC. But now I am wondering whether or not they are the best to go for. We are going the repayment route and looking for the mortgage with the lowest repayment amounts.

Your help will will be greatly appreciated

IDN101

Hi

Quite simply: Just look around at what is on offer. Use comparison websites (Money Supermarket, etc). Use a No Fees, Whole of Market Broker, just make sure you're always comparing "like for like"- ie all the fees, etc.

Regards,
Ian

owitemisermusa

IDN101 wrote: »

Hi

Quite simply: Just look around at what is on offer. Use comparison websites (Money Supermarket, etc). Use a No Fees, Whole of Market Broker, just make sure you're always comparing "like for like"- ie all the fees, etc.

Regards,
Ian

I concur!

PS: also check moneymadeclear.co.uk (from the FSA)

missmom

Thank you for all the replies

been searching.

Another question, when one settles for one fixed rate mortgage for a no of years, when the fixed term is over, is it easy to get onto the best rate in the market (can one keep remortgaging over and over again?)

herbiesjp

Assuming your income is always enough to support the mortgage needed you will be fine re-mortgaging

missmom

Thanks herbiesjp for your response.

I have just come across a great deal ending tomor with a fin. advisor (L&C)
It is a stepped fixed rate of 4.69%, 5.49% and 5.99% in Year 1, 2 and 3 respectively.

It seems like a great deal with the whole credit crunch issue.

So what do you guys think?

ixwood

5.39 on average, so not too bad, but probably not market leading. What are the fees.

One good thing about the step is that you could overpay in the early lower year.

missmom

the product (booking fee) is £499. There is also a valuation fee of £330 and a mortgage account fee for general admin of the mortgage of £225 (payable on completion or could be deferred until the end of the mortgage)

So Ixwood, so what is the market leading rate?

Thanks

_Andy_

I think you're looking at the Abbey stepped - pretty good product assuming you don't mind your payments going up each year obviously. Total cost over 3 years tends to work out quite well against other 3 year fixed rates.

missmom

The question now, is are there other deals better than this one?

IDN101

missmom wrote: »

Thank you for all the replies

been searching.

Another question, when one settles for one fixed rate mortgage for a no of years, when the fixed term is over, is it easy to get onto the best rate in the market (can one keep remortgaging over and over again?)

Yes- and you SHOULD keep changing to the BEST deal around!!!! Most likely your existing Lender will be more interested in NEW business than EXISTING!


Also: Always leave approx 3-5 months before the end of any fixed term to start researching / arrange any new remortgage deal.

Regards,
Ian