I need help! Choosing a mortgage and cutting through the numbers. Two mortgage offers, which to choo

Don't plumb for your bank, Lloyds TSB don't do good mortgages deals there are far better. Look at a comparison site, ie www.moneysupermarket.com and play around with the parameters. Most people assume they have to gt a 25 year mortgage, you don't. Try increasing the term to see how it affects the cost. You can always overpay to reduce the actually length.

If in doubt talk to a IFA. Not sure why the agent pressuring you take his offer. The mortgage you get nothing to do with him, (unless he gets some kick back so wants you to takes his). However, delaying to much might mean they market the property to someone else. You can't really delay getting a mortgage offer.
 
To work out which one is better we'd need to know the loan amount. I can't be bothered to calculate the break even amount for the arrangement fee without it :p
 
grimm said:
To work out which one is better we'd need to know the loan amount. I can't be bothered to calculate the break even amount for the arrangement fee without it :p
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That was post 3, I forgot to include it in post 1 :D

£103,950.00. That's the loan amount not including our deposit.
 
Look at Nationwide and First Direct also.

Be careful of large setup fees.

Mortgages are terrible at the moment. In November 2011 I managed to book a 5 year tracker with Nationwide for 2.75% (base + 2.25) and £99 booking fee which included all conveyancing.
 
SiD the Turtle said:
Woah those rates are terrible. I got 3.89% from Nationwide a couple of weeks ago.
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3.89%? Pfft can get 1.99% with YBS ;)

All depends on your LTV, at 90% those are roughly the going rate ranges.

So unless you have 90% LTV as well then comments on other rates are pretty meaningless as it's obvious that higher deposit/lower LTV equals lower rates.
 
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I am getting slightly different values from different Mortgage calculators but roughly on £103,950 loan over 25 years the differences between the 3 are :

Lloyds @ 5.19%, no fee = £626.38 / month. Total cost over 2 yrs = £15,033

Abbey @ 4.49%, £500 fee = £583.58 / month. Total cost over 2 yrs (inc fee) = £14,505

HSBC @ 4.19%, £599 fee = £565.69 / month. Total cost over 2 yrs (inc fee) = £14,175

Though as stated above, a mortgage broker may be able to find you a better deal than one you can personally get directly. Don't worry about 'loyalty' to a bank, this is business and it's your money, so just go with the best deal you can get, then at the end of the 2 year period change again for the best deal.
 
You can also get surveys done for much less than the prices quoted.

I'm in the process of taking out a second mortgage to move house. (Keeping a fix and taking another for differnce.) The valuation survey, which is for the benefit of the lender, was free. Although i do get a 2 page report highlighting major issues etc (none). But they wanted £300 extra to turn it into home buyers survey. I found an independent surveyor locally (coincidentally, also recommended by estate agent, but that didn't play a part in my choosing him as i didn't know that when i picked him) that can do it for £215 and will tell us on the day if he thinks we need a full building survey which will only cost an extra £35. He's cheaper because we're going direct. He's a member of the relevant body too. RICS iirc.

Search online for surveyors and go to moneysavingexpert for mortgage info. I think someone has already mentioned L&C - they're independent and often recommended. I wouldn't trust advice from an advisor in bed with an estate agent.

As far as the SVR, it should be taken into account, but you should not enter into a situation whereby you're actually on it. You should remortgage at the end of the term and its no more difficult than what you're doing now, assuming your circumstances haven't dramatically changed for the worse.
 
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Me and the missus have just exchanged contracts for our first flat this week. I've been using a really fantastic IFA who handles properties in Cambridge/London.

We did end up going for a mortgage with our current bank (two year tracker) because it seemed like the best deal but having someone totally independent take me though it was definitely very helpful.

I'd steer well clear of 'IFA's within Estate Agents. I'd steer well clear of Estate Agents in general if it was possible!!
 
I don't think it's worth fixing for 2 years unless the rate is comparable to a current variable rate. Rates aren't going up in the next two years, it's possible thay may go down further.

Just go on money supermarket, plug in the numbers and see what's on offer. You don't really need an advisor, especially one that works for an estate agent. A broker can be usefull for filling out an application though :)
 
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Bromhead said:
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Option 1 - Lloyds TSB

2 year fixed rate 5.19%, variable rate thereafter 2.99%.
No set up fee
Level 1 surveyor £250 / Level 2 surveyor £550
Solicitors fees £800

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Option 2 - Estate agent/Abbey

2 year fixed rate 4.49%, variable rate thereafter £4.74%.
£500 set up fee
Surveyor £229 (The estate agent did not advise what level survey this was for)
Solicitors fees £800

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Borrowing: £103,950
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I've just put those into a mortgage comparer spreadsheet I wrote and Option 2 comes out better by £530 at the end of the 2 years
 
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