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    • theallam
    • By theallam 10th Oct 18, 7:44 PM
    • 5Posts
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    theallam
    First time buyer/low LTV advice
    • #1
    • 10th Oct 18, 7:44 PM
    First time buyer/low LTV advice 10th Oct 18 at 7:44 PM
    First time buyer in the UK here. I've found a nice house in my hometown, offer's been accepted, and I only need a mortgage of 35k (15% of the property's value.) Currently in the shopping around stage. As I know I'm in quite a rare position, I just wondered if anyone could offer their 2 cents on a few things...

    -Is it worth paying for a mortgage broker? If I was borrowing a large LTV I wouldn't dare go without independent professional advice, but nowadays with online resources I'm wondering if it might not be necessary in my situation.

    -Any insights on the best lenders to go with? Heard good things about Nationwide and Halifax.

    -Is it better to go with a shorter fixed rate over a 10 year one? Especially with Brexit to look forward to soon...


    Any help would be much appreciated 🙂
Page 1
    • butterflybook
    • By butterflybook 11th Oct 18, 12:50 PM
    • 76 Posts
    • 18 Thanks
    butterflybook
    • #2
    • 11th Oct 18, 12:50 PM
    • #2
    • 11th Oct 18, 12:50 PM
    I would always say instruct a broker, they are worth their weight in gold not only for the advice but pushing things through to completion. In my experience the likes of Nationwide and Halifax will not be offering the most competitive products currently. Preferences around fixed rates are down to your personal feelings and the type of person you are and what is going to make you feel comfortable.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • somethingcorporate
    • By somethingcorporate 11th Oct 18, 1:12 PM
    • 8,964 Posts
    • 8,675 Thanks
    somethingcorporate
    • #3
    • 11th Oct 18, 1:12 PM
    • #3
    • 11th Oct 18, 1:12 PM
    Why would you go with a shorter fix given there is short-term uncertainty.


    In your position I would opt for a long as fix as I could, given a) rates have never been lower and b) there is a lot of short-term uncertainty on the horizon.


    Given the low value of the mortgage could you get a ten-year duration and a ten year fix? then you would know your entire costs and have no risk on that payment rising.
    Thinking critically since 1996....
    • ACG
    • By ACG 11th Oct 18, 1:17 PM
    • 17,668 Posts
    • 9,462 Thanks
    ACG
    • #4
    • 11th Oct 18, 1:17 PM
    • #4
    • 11th Oct 18, 1:17 PM
    How long do you plan on keeping the Mortgage for? If less than 10 years then I would probably rule out a 10 year fix. If over 10 years, its a discussion worth having. There are not many 10 year fixes around so they are unlikely to be competitive.
    Any other debts?
    Straightforward income?
    Any bad credit or quirks for you or the property?

    As another poster said, Nationwide/Halifax are not exactly leading the way on cheapest deals at the moment. They can be flexible for certain things, but if you do not need flexible then you should be chasing the deal (not the rate).

    As for whether you should use a broker, it depends what you want. We are not a price comparison service and I suspect most brokers are going to want paying on a deal that size. A brokers job is to take it all out of your hands and deal with everything.

    If you have no complications then I would say do it yourself if you feel confident enough and have the time to.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • kingstreet
    • By kingstreet 11th Oct 18, 1:25 PM
    • 34,260 Posts
    • 18,599 Thanks
    kingstreet
    • #5
    • 11th Oct 18, 1:25 PM
    • #5
    • 11th Oct 18, 1:25 PM
    On that size mortgage, I'd be looking for a free valuation, no product fee and a cashback as they will outweigh any savings from a lower rated product.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • theallam
    • By theallam 12th Oct 18, 8:24 PM
    • 5 Posts
    • 0 Thanks
    theallam
    • #6
    • 12th Oct 18, 8:24 PM
    • #6
    • 12th Oct 18, 8:24 PM
    How long do you plan on keeping the Mortgage for? If less than 10 years then I would probably rule out a 10 year fix. If over 10 years, its a discussion worth having. There are not many 10 year fixes around so they are unlikely to be competitive.
    Any other debts?
    Straightforward income?
    Any bad credit or quirks for you or the property?

    As another poster said, Nationwide/Halifax are not exactly leading the way on cheapest deals at the moment. They can be flexible for certain things, but if you do not need flexible then you should be chasing the deal (not the rate).

    As for whether you should use a broker, it depends what you want. We are not a price comparison service and I suspect most brokers are going to want paying on a deal that size. A brokers job is to take it all out of your hands and deal with everything.

    If you have no complications then I would say do it yourself if you feel confident enough and have the time to.
    Originally posted by ACG
    Gonna go for 20 years, hopefully I can pay it off a bit earlier. But I'm thinking 10 years is a long time to fix for, my situation could of course change in terms of work and family.

    My credit's fine, no debt, and the house seems in very good condition. Income is consistent.
    • theallam
    • By theallam 12th Oct 18, 8:27 PM
    • 5 Posts
    • 0 Thanks
    theallam
    • #7
    • 12th Oct 18, 8:27 PM
    • #7
    • 12th Oct 18, 8:27 PM
    On that size mortgage, I'd be looking for a free valuation, no product fee and a cashback as they will outweigh any savings from a lower rated product.
    Originally posted by kingstreet
    Thanks, that's a great point. The price comparisons I've done definitely back that up.
    • AnotherJoe
    • By AnotherJoe 13th Oct 18, 12:22 AM
    • 11,063 Posts
    • 12,749 Thanks
    AnotherJoe
    • #8
    • 13th Oct 18, 12:22 AM
    • #8
    • 13th Oct 18, 12:22 AM
    Why would you go with a shorter fix given there is short-term uncertainty.
    Theres always short term uncertainty. And medium term. And long term.
    In your position I would opt for a long as fix as I could, given a) rates have never been lower and b) there is a lot of short-term uncertainty on the horizon.

    Actually, rates have been lower. As recently as a couple of months ago.

    And if anything, Brexit is more likely to mandate lower rates, not higher.



    Given the low value of the mortgage could you get a ten-year duration and a ten year fix? then you would know your entire costs and have no risk on that payment rising.
    Originally posted by somethingcorporate

    With such a small mortgage, it would take a massive rise in rates to make any real difference. For example 2.5% to 4% is just 27 a month more. If the OP cant afford that dont buy a house.

    And finally, a 10 year fix is going to likely land them with a disproportionately large ERC for little real gain.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • ACG
    • By ACG 13th Oct 18, 10:10 AM
    • 17,668 Posts
    • 9,462 Thanks
    ACG
    • #9
    • 13th Oct 18, 10:10 AM
    • #9
    • 13th Oct 18, 10:10 AM
    AnotherJoe - I was at a conference earlier this week. 2 of the 5 lenders there said they are looking to improve their criteria and look at different markets because at the minute they are not looking to lower their rates any more when they can lend it out elsewhere at higher margins.

    One of the lenders was looking at lending to Ltd Company BTLs (which they do not currently do), another was looking to get in to commercial lending... Although 3 days later I receive and email from one of those lenders where they had knocked around 0.1-0.2% of 2 of their deals.

    I do get the impression rates are probably as low as they will go with maybe the odd tweak here and there (up and down) depending on how business volumes dictate.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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