[Closed] mortgage advise

find a pro.....

If I were you I'd try to find a good fixed rate for a couple of years. You would at least be able to budget well in the first few years as you'll know exactly whats going out.
interest rates could go up tomorrow, could be 2 years, could be whenever..
Its relativly easy to switch morgages, as long as your not in a tie-in there are massive penalty clauses for coming out of a product before the end of the contract.
I really would try to find a good financial adviser though!!

Echo what Martyn said. If you do find an expert make sure they are not tied to one lender

There are usually costs for getting out of a deal and fees for starting a new one so the savings aren't always as good as you might think. It might make more sense to go for a longer deal and just live with it.

good advice here:
http://www.moneysavingexpert.com/mortgages/

..and be prepared to be disappointed if you are expecting the headline rates on the news.

We're just sorting our mortgage at the moment. Here's our view..

If you have loads of disposable cash I'd take a risk and go for a standard variable rate. In the medium term these are likely to be a good deal as competition for mortgages increases.

If you don't then deffo fixed rate - 2 or 5 year deal. There is a lot of uncertainty in interest rate forecasts at the moment and if you don't have lots of spare cash it is better as a first time buyer to have a known outgoing.

The economy goes in cycles and its fair to say that in a couple of years time it will be boom time again which means interest rates will be going up. If that is going to hurt you take a longer-term fixed.

Whatever you do make sure you have enough spare cash each month for emergencies! (and bikes)

cheers!

what about something like the which guide

is this s good as an advisor?
[url= http://www.which.co.uk/reviews/mortgages/mortgage-finder ][/url]

If you can get a fixed around 3% I'd go for that. Rates will hit zero at somepoint this year but will rocket up from 2010 onwards - You also have to bear in mind that houseprices will probably contact by another 15% this year (possibly more depending on where you live) so any gain now could be negated if you look to remortage in 5 years time due to equity issues

Chelthanam and Gloucester currently have good deals http://www.cheltglos.co.uk/mortgages/fixed-rates/index.html

I'd be stunned if you could find a fixed rate for anywhere near 3%, with a 20% deposit you'd be looking at 4-5% at least, probably nearer 6%. I was in your position this time last year, and fixed for 5 years. Happy to know exactly what my mortgage will be for that length of time. I'd also struggle if rates went to 11 or 12% so wanted the security.

You can't predict exactly what interest rates will do, although Lanresa's advice seems reasonable. If that happens, a long fix would be good. Mortgage rates of about 5% are historically low I think. He could be wrong, and rates could stay flat for a decade. Obviously you'd want a tracker then, feel like gambling 😉

Switching mortgages can be expensive, think mine would have cost about £3k to £0 over a sliding scale over the 5 year fix. Thats on £107k. As alluded to above, if the market puts you into negative equity and rates are rising fast you will be unable to remortgage and will be stuck on a lenders SVR (standard variable rate).

Have you considered saving like mad for another year? The waters will probably be a bit less murky then and I'd bet you'd get somewhere better for the money.

Kimber - If you interested in having a chat I'm a whole of market mortgage advisor so not tied to any one company or even a panel of lenders, i can search the market for you and offer independent advice that works for the client not the lender. My e-mail is in my profile. Send me over a phone number and I'll contact you tomorrow if you let me know whens a good time to talk.

I know this is a shameless plug but needs must and all that and I'll donate to the singletrackworld beer & kebab fund for each mortgage i arrange for a STW member 😉

Oh and there is no fee for the advice so what is there to lose 😀

hey kimber

i'm in a similar position. for quick comparisons the motley fool website has a good mortgage search tool. i've also found that lower rates are only available direct from lenders, rather through than a mortgage broker (sorry bigsi) but then you're application might take a bit longer

in my view if you're going to fix, it might as well be for a long time. i did a bit of maths to compare either scenario and concluded that 5 years would be better for me, but thats making some assumptions about what interest rates will do (and there's only one way they can go)

the best 5 year deal i've found is 4.15%

you might find this spreadsheet useful:
[url] http://office.microsoft.com/en-us/excel/HA010346401033.aspx [/url]

[img] [/img]

no probs petefromearth - People use mortgage brokers to get independent advise rather than just advice on one companies products.

It is true that SOME providers will offer slightly better deals direct but it is also true that others will offer better deals through brokers as it means they can run with a smaller direct to public sales force. There are also still some lenders who only deal with brokers just as there are one or 2 providoers who will only deal direct with the general public. Using a broker can take the pain out of dealing with the lender direct and i know from experence that they can be a real pain to speak to 😥

When using comparision site do be careful because for them to be independent doesn't mean they have to show every lender's products it just means that the lenders they offer are representivie of the market. What you want is for any broker you speak too to be whole of market. That way you know that they can deal with all lenders who deal with brokers and not just some of the lenders who deal with brokers.

Hope that clears that up 😉

If you can stretch to a 25% deposit you'll get a better choice of mortgages.
Although 20% is a great deposit for a FTB (and is double or 4 times what most people put down up until 12 months ago) the market has changed and most of the good deals start at 75% LTV (Loan To Value). The best deals are now generally asking for a 40% deposit(There will be a few exceptions).
Do your homework and if possible visit an Independent broker who at the very least can confirm what you have researched yourself, even if you then choose not to use them.

Hi Kimber
If its a recommendation your after give bigsi a call,
Never met him ,dont know him but he has sorted me out recently, i tried at least 4 independent advisors he was the best
Has he says,he is quite willing to chat freely
PS i searched for hours couldnt get the deal he was offering

Snap

Nationwide have a good base rate tracker mortgage at the moment if you have cash and can handle your money. Not fixed in, can over pay with any amount. Have a look.

well i'd agree that speaking to direct to the lender is a pain in the proverbial - i would much rather have gone with a broker

the post office (who are doing that 4.15% deal) appear to have only about 3 people in their call centre who don't speak to each other!

I'd go for a base rate tracker offset. Interest and capital repayment. Aim to borrow 3 times your salary. Anymore and life will become a drudge paying bills all the time.

When I took out my first mortgage 2.75 times your salary was the norm (plus 1x the second if you were a couple).

Times have changed and the whole stupid mess of inflated house prices has come about because lenders were allowed to throw any amount of money at borrowers. Only a few people realised a profit from cheap loans, but then most of these people were speculating for profit, not just buying a home to live in. Their greed inflated prices for the rest of us. Of course some have inadvertently just got lucky, but you don't have the equity until you have sold the property.

The perceived value in property gave people a feel good factor, but it is just funny money. Having high house prices makes it much more expensive and difficult to move up the ladder, regardless of how much equity you have.

Good luck!