Mortgage advice

T_C_E

I need help with some mortgage advice. We are currently on a varied rate after finishing a 6 year deal with the Halifax. So who is offering the best deals at the moment? The Halifax has offered me a 5 year fixed rate at 4.something % the paperwork is on its way so with 5years and 9 months left should we stay with them? Help.....................keep it simple folks : )
Ray

Edit..........Admin feel free to sink or remove this, I've picked up on the mortgage thread ; )

LenGlover

If you want certainty as to what you need to fork out each month then the 5 year fix is best. Given that the remaining term is only 9 months after the fix you might want to overpay to settle the thing earlier so check out penalties /charges for overpayments.

If you don't mind speculating you can get a cheaper rate in the short term but who knows what will happen over the next 5 years?

T_C_E

[cite]Posted By: LenGlover[/cite]If you want certainty as to what you need to fork out each month then the 5 year fix is best. Given that the remaining term is only 9 months after the fix you might want to overpay to settle the thing earlier so check out penalties /charges for overpayments.

If you don't mind speculating you can get a cheaper rate in the short term but who knows what will happen over the next 5 years?

Cheers Len.

LenGlover

[cite]Posted By: T.C.E[/cite]

[cite]Posted By: LenGlover[/cite]If you want certainty as to what you need to fork out each month then the 5 year fix is best. Given that the remaining term is only 9 months after the fix you might want to overpay to settle the thing earlier so check out penalties /charges for overpayments.

If you don't mind speculating you can get a cheaper rate in the short term but who knows what will happen over the next 5 years?

Cheers Len.

Stanmore or Golfie are the people who know about mortgages on here.

kings hill addick

I recommend that you speak to a Mortgage Broker.

I know a couple if you can't find one you like.

T_C_E

[cite]Posted By: kings hill addick[/cite]I recommend that you speak to a Mortgage Broker.

I know a couple if you can't find one you like.

I've never had to do that, does it cost a couple of limbs just for a chat?

kings hill addick

No it's normally free. You only pay if you actually do something with them. Some don't even charge anything then, they get paid by the bank.

ColinTat

Don't pay a mortgage broker. In my experience they tell you nothing of real value that you can't find out yourself. By all means use a mortgage advisor, but use a free one who takes their money from the bankers side. I think I'm right in saying that HSBC don't use mortgage brokers, so it's always worth checking yourself ansd asking the MB who they don't have access to.

I recommend a five year fix, that's what I'm on. I know I'm losing out at the moment but I'm budgeted and able to consistently top it up. It doesn't look like interest rates are going anwyhere, due to the US market indicators being bloody awful. So you might miss out with comparison to a tracker for a few years.

I spoke to a few mortgage brokers, who told me nothing I didn't know but it was still good at sorting through things in my mind. In the end I found out that Britannia did a fee free mortgage, that worked out cheaper for me than taking the lowest rate at HSBC. Britannia are part of the Co-Op, and their mortgages are excellently put together with low charges if you have to change things.

golfaddick

I am a registered mortgage broker, but unlike Mr Tat above, I can't & don't go out giving "advice" without knowing my clients full circumstances..........

Mr Tat may be on a "good" 5 yr fix...........but when was this done and at what rate !

3 yrs ago I got clients lifetime trackers at base +0.39% on a 90% loan - try getting that now !!!!!!

Best bit of advice I can give you is to search the market - either via a broker or by yourself, but DONT take advice from someone else who isn't qualified.

T_C_E

Thanks to all.

ColinTat

[cite]Posted By: golfaddick[/cite]I am a registered mortgage broker, but unlike Mr Tat above, I can't & don't go out giving "advice" without knowing my clients full circumstances..........

3 yrs ago I got clients lifetime trackers at base +0.39% on a 90% loan - try getting that now !!!!!!

So golfie you promote your industry via quoting an utterly misleading, meaningless headline rate that no one can get now? You used to be a contender......... Does that mean if I find another mortgage broker who got a lifetime tracker below base rate the year before your industry is a crock?

As if anyone couldn't walk into the Woolwich a few years ago and get 0.19% above base rate. They must have been better than mortgage brokers.

Yes do your own research, and make your own mind up. So get on directgov and use the FSA's comparison table. And don't take advice from a man in a suit who bangs on about what he's done in the past. It's pretty easy to find a better deal yourself:

DirectGov Mortgage Advice

FSA Mortgage search

golfaddick

the point i was trying to make Mr Tat is that you were recomending a 5yr fix rate, because that is what you have...........but what rate have you got because if it was a few yrs ago that may not be available now and also why would that be suitable for someone else ? Hence then my "tale" about what was available 3 yrs ago - wasn't trying to big myself up but to show that rates change all the time & you shouldn't go by what other people have as their circumstances may be different to yours.

Jints

I've had an offer from HSBC of 1.69% over base rate (i.e 2.19%), no fees, no commitment. However you need to be borrowing no more than 60% of the value of your property. I'm currently on the standard rate at Nationwide at 2.5%

Personally a fixed rate is out of the question as far as I'm concerned. I think they are terrible value at the moment at 3.5% plus over base plus the upfront fees you have to pay. I don't think base rates are going anywhere soon and when they do I think they will go up slowly while fixed rates won't increase by as much if at all.

However, it's horses for courses. If you don't mind paying for the security that's fine. Seems to me like a lot to pay (at least £4K a year on a £200K mortgage) but I'm no expert.

golfaddick

PS - thanks for all you on here that think brokers give out "free advice" - so its ok to ask them for their professional opinion & then go elsewhere for the product they may recommend. We are not chairities and we do actually have to make a living.

Lots of people are in for a shock as in 2012 the industry is changing - the FSA is banning commission and financial advice will have to be paid for - either via a fee or via a product charge...........no more "free" advice i'm afraid !

Exiled_Addick

[cite]Posted By: golfaddick[/cite]
Lots of people are in for a shock as in 2012 the industry is changing - the FSA is banning commission and financial advice will have to be paid for - either via a fee or via a product charge...........no more "free" advice i'm afraid !

Interesting, does that include advisors who take their fee from the lender?

[cite]Posted By: Jints[/cite]
However, it's horses for courses. If you don't mind paying for the security that's fine. Seems to me like a lot to pay (at least £4K a year on a £200K mortgage) but I'm no expert.

Whether or not it's a lot to pay depends on how easily you'll be able to take the hit if the rates rise rapidly and unexpectedly.

Jints

[cite]Posted By: Exiled_Addick[/cite]

Whether or not it's a lot to pay depends on how easily you'll be able to take the hit if the rates rise rapidly and unexpectedly.

Yes, but more to do with jus how likely it is that rates will rise rapidly. There is a chance but I think it's very, very slim in the medium term (i.e. next 3 years). You face the same problem on a 5 year fix anyway. You just delay it aby 0-5 years (depending on when these rapid increases happen).

GRAY9

There was article the other day saying interest rates could hit 8% by end of next year. I don't agree but shows that some people are expecting a rapid rise.

Exiled_Addick

[cite]Posted By: Jints[/cite]

[cite]Posted By: Exiled_Addick[/cite]

Whether or not it's a lot to pay depends on how easily you'll be able to take the hit if the rates rise rapidly and unexpectedly.

Yes, but more to do with jus how likely it is that rates will rise rapidly. There is a chance but I think it's very, very slim in the medium term (i.e. next 3 years). You face the same problem on a 5 year fix anyway. You just delay it aby 0-5 years (depending on when these rapid increases happen).

Yes, but you get a buffer period and therefore time to readjust you budget or even sell up if needs be.

It's a brave man who mortgages himself up to the hilt and then gambles on the financial markets being predictable.

kings hill addick

I still advise you speak to a Broker/Adviser. Sure you can fund stuff out by yourself, just as you can Google Cancer but if you've got it you really ought to see a medical professional.

For sure the "I've gone one of these so they must be best" is a way to go, but I wouldn't recommend it.

In answer to the 2012 issue that ban on commission, currently, doesn't apply to Mortgage Brokers, just Financial Advisers offering advice on investment products.

At the end of the day you do what you like, but Brokers don't only know about rates they also know about underwriting and affordability, but most importantly an Independent Broker will offer ancillary products from a variety of companies where as the likes of HSBC merely use their own.

Comparison web sites are commonly boycotted by a number of providers so you don't get the full Market with them.

Good Luck, with all the different advice you seem to be being offered you will probably need it!

razil

anyone know what the maximum multiples on salary are in the market today for a regmortgage with 14-17% equity?

Cheers

R

golfaddick

really depends on the lender - some will go up to as much as 5 times, but if the LTV is low (15% is considered low nowdays) then you may only get 3.5 to 4 times income - it also depends on your income. Generally anyone earning in excess of £50k can get a better multiple than someone on only £20k.

hope this helps.............if not, speak to a "professional"

se9addick

Morning all.

First time buyer, just looking for the esteemed advice of you all on this forum. I’ve gone through a broker, London & Country, who claim to be “the UK's largest no-fee mortgage broker”, and was wondering if anyone had any experience of dealing with these guys ? Failing that if anyone has any experience of using a broker and has any helpful do’s and don’ts to pass on, they would be greatly appreciated.

Cheers.

charente addick

[cite]Posted By: kings hill addick[/cite]I still advise you speak to a Broker/Adviser. Sure you can fund stuff out by yourself, just as you can Google Cancer but if you've got it you really ought to see a medical professional.

To be fair the stakes with cancer are normally a fair bit higher than your mortgage interest. Also, more people have an adequate working knowledge of financial instruments than they do health issues. Personally, I've not got a lot of benefit out of mortgage advisers, it ain't that high a skill set. Having known a few through work I'd also be careful who you trust not to be completely driven by self interest.

Mendonca In Asdas

Knowing someone that has lost their house , best advice i'd say is always get one that you can afford , simple i know but i think i read somewhere that 25 % of your salary tops is how much you should pay , otherwise you will not afford to be able to live, problems come if you lose your job and can't pay the mortgage, as a lot of people i know haven't taken out a mortgage protection plan( because its too expensive) , if you can overpay and pay it off quicker then you will save yourself a bundle on monthly interest charges , and be better off in the long term , but do watch the penalty clauses and decide whether it is worth it.

golfaddick

[/quote]

Personally, I've not got a lot of benefit out of mortgage advisers, it ain't that high a skill set. Having known a few through work I'd also be careful who you trust not to be completely driven by self interest.[/quote]

Yeah, because all us mortgage brokers are thick as sh*t and only looking out for themselves !!!

Funny that all my clients are doctors, well educated and highly skilled but most of them don't know how much they can borrow, what type of loan to go for, etc etc.............thats why they use me - Monday night saw me sorting out a mortgage for a Colecteral Surgeon for example.

Best advice I can give is that currently deposit is king, esp if you are a first time buyer. The bigger the deposit then the better the rate (fixed or tracker) - forget 10% as this will give you a crap rate - need to be looking at 20% - 30% to get a reasonable deal nowdays.

razil

since the libor rate which we are told governs actual mortgage rates (jnter bank lending rate) was largely unaffected by the bank of England rate coming down, I am expecting my variable rate to be unaffected when the bank rate goes up a little, who thinks I'm right?.......


edit: perhaps only those on rates linked directly to the base rate will suffer after a rise in the base rate - somehow I doubt it, my Northern rock variable went down to about 4.5% and no further

les_says

golfie, bearing in mind yesterday's news is it time to move from a tracker/variable to a fixed if you're out of contract (so to speak)?

razil

i heard on the news most of this years possible rate rises are already factored into the fixed deals, I can't see borrowing remaining cheap or ever being so again though personally after the problems such loose lending has caused - except as is said above, those with large deposits.

Athletico Charlton

[quote][cite]Posted By: razil[/cite]since the libor rate which we are told governs actual mortgage rates (jnter bank lending rate) was largely unaffected by the bank of England rate coming down, I am expecting my variable rate to be unaffected when the bank rate goes up a little, who thinks I'm right?.......


edit: perhaps only those on rates linked directly to the base rate will suffer after a rise in the base rate - somehow I doubt it, my Northern rock variable went down to about 4.5% and no further[/quote]

Libor rate is down to 0.75% so only 25bps above Base Rate...it followed Base Rate down it just didn't happen overnight. What is more important is the amount it costs each individual bank to borrow money as it costs the likes of HBoS & RBS a heck of a lot more than it does the likes of Barclays & HSBC.

razil

so how much does it cost Northern Rock? And why is their variable at 4.5% when the libor and base rates are so low?

Saga Lout

[cite]Posted By: golfaddick[/cite]
Funny that all my clients are doctors, well educated and highly skilled but most of them don't know how much they can borrow, what type of loan to go for, etc etc.............thats why they use me - Monday night saw me sorting out a mortgage for a Colecteral Surgeon for example.

I'm always interested in other peoples' business and I'm interested to hear that you specialise in providing mortgages to medical professionals (or is it to people with dooctorates?) - are you the only such specialist or are there others?