Anyone changed theirs recently?
My five year fixed rate due to end soon and i'm in 2 minds whether to stick to another fixed ,paying slightly less than i am now.Or go for a tracker which looks very attractive at the moment but i've read some articles saying rates will go up this year and possibly quite aggressively if inflation starts to get out of hand.Anyone on here with an ounce of financial nous got any ideas?
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http://www2.banking.firstdirect.com/1/2/mortgages/our-latest-mortgage-offers;jsessionid=0000c65fioxGT9iWHY5JOuE-AzQ:11jmjm8n8?clear=true
Of course there will be pain when rates go up although any fixed rate deals available will have factored in forecasted trends. Be wary of short term deals I reckon, you usually have to stump up best part of a grand in fees - which you don't want to do every two years.
If you're happy with the rate you've been offered and it's already less than you're paying now, I'd go for the security of a fixed but everyone and their apporach to risk, redemption, etc, is different so probably worth the time and money spent with an independent financial advisor.
So my advice is...don't listen to what anyone on here says :-)
They could scrape up £20,000 deposit what is the amount they may need as first time buyers. They will not buy a cardboard /flat/ starter home so these tied deals like the apartments on the Kent/ SE river river will not be of interest.
They are both in the building game, so will probably get a older house in an area they hope is up and coming. Quite where that is I have No idea!. There girlfreinds have good steady jobs, and they have a decent work record ( well as much as you can in the building game) Any positive advice. I think they will need a little bit more which means me stumping up!
They've never defaulted on there mortgage, have a combined income of about 40k but still can't get a mortgage.
I'd make sure that someone is willing to lend your son before they go looking at places.
They were hoping to get something around the £200,000 mark each and there incomes are fine. So it looks like £40,000 a piece then on a £200,000 hovel!
Should get a nice little garden shed/garage in Bexley village for that!. Hard pressed to think of a house under £200,000 in the village, except the ones in the high street and most of those need underpinning/ new roofs etc, or will do in the next 5 years except the new build stuff. There is some ex Bexley council stuff but that goes for at least that, probably £30,0000 more, did see one next to a pub, but that is a no no.... ( pissheads excluded)
If i've understood that right then even though they've got a 75k deposit they still need a 175k mortgage. But only have an income of 40k. So they're asking for over 4 times their salary which is why they might struggle to get one. It does seem crazy though with a 75k deposit, thats over 30%.
On £40k they should be able to get 175k because they have a nice deposit in place and the bank instantly have some equity if they can't keep up repayments and it gets reposessed
I don't fully agree with him, but whilst I'm only a humble IFA and mortgage broker I would say that the base rate is highly unlikely to go up by more than 2% over the next 3 years and in 5 years time are stil unlikely to be above 5%.
Therefore be wary of fixing above 4% over the next 2 or 3 years and if you can get a tracker around base + 3 for the same period go for it.
As for 1st timers - you will need at least a 15% deposit to get a decent rate - anything less and you will be paying 6%+
Where they're moving from was there first place and had a deposit of about £30k I think and the place they bought was about 150k, which is why they can't understand why they can't get a mortgage now.
So who do we beleive?
Last time that turned out to be Northern Rock!
Now that does make it clear. Used to be at least three years audited/certified accounts and they could be pickky! .
The market does change, and seems to indulge in rent to buy/ first timers/investment/ etc......
I would have thought the first rule of thumb was can the person afford it, and as others have stated, can they get there wedge back after repossession.......
Having a solid, job ( now there is a challenge) and qualified, graduate, or professional surely counts for something., as well as working for an established company, (not two blokes and a transit, doing job and knock)
Whatever happened to that Insurance indemnity scheme, bit like GAP finance on a car, I thought that was introduced to safeguard the banks!.
Alway's felt the self employed have a rough time of it re mortgages! are they not supposed to be the cornerstone of enterprise!.......
If you have a 40% deposit (yes 40% !!) you can get the best deals going - a 10% deposit gets you zilch ! I deal mainly with doctors, probably one of the best paid, professional,recession proof sectors of the economy and they still need in excess of 10% deposit to get anything decent.
If the public only knew how much they are being shafted by banks which have been bailed out by THEM, the taxpayer, there would be riots ! Even 5 years ago before the housing market went crazy the diferential between the Bof E base rate, lenders SVR's and typical rates available with a 25% deposit would likely to be around 1-2%.
now, we have a B of E rate at just 0.5% and some lenders SVR's at over 5% - a 25% deposit will get you a fixed rate around 4.5% and a tracker at around 3%.........the banks are making money hand over fist !! The bank of England has reduced rates as much as they can and all lenders have done is to raise their margins and made more money.
I dont think they are there for me only themselves and their share holders. Although I'm sure theres more to it than that. When I had a mortgage I was given misleading advice which took 3 years to undo. I really feel for people trying to get on in life now days.
Thing is, I revert to their "Base Mortgage Rate" which is guaranteed not to go 2% above base - so only 2.5% at the moment - and nothing else they offer is anywhere near that. In my view the tone of their letters is completely misleading - bordering on devious - as I'm clearly better off staying with what I've got and but that's obviously not a good deal for them.
And to think, Nationwide are normally one of the better institutions - although that's not saying much really.
I used to have savings with them - when I had savings! - when they first launched in the UK.
Anyone with them should expect a cracking heaadline deal to start with, but then be prepared to get bent over and royally shafted at every opportunity if their savings accounts are anything to go by.
Yes, the savings rate dropped, but so did the base rate.
Re-mortgaged to them 3 years ago - all done in 20 mins on the phone.
- Base rate +0.89% tracker for life (so currently on 1.39%).
- No booking fee.
- No legal fees.
- Overpaymenta allowed.
- Underpayments allowed if you've already overpaid.
- No early repayment/exit fees
As for their savings rate, I know all the rates came down but theirs fell more than most - once they'd cracked the market with their initial marketing/rates. All part of the game I spose.
Their best deal now is 2.29% above base rate which now incurs a fee of about £700
Which is the best i've found at the mo
Savings rate - yes, it fell away slightly more, but the ones offering the high rates were people like the Icelandic banks & we know what happened to them!
sorry to disapoint you Ken, but the only thing that counts nowdays is the size of your deposit......
Accept that for people like me ...... so what do the youngsters do....... rent !/ worry/live in my spare room.....
I thought that finding £20,000 was bad enough to find when you are 21, not sure i could have scrapped up £20 when I was 21 doing my degree, now a days they are minus £20,000 at least.....if you are doing a degree.