Best mortgage deals currently

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Jez

Jez

Jez

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I have recently submitted an offer for a property, and have finance agreed with direct line mortgages for 5x salary over the maximum term they would give me of 43 years.

This is all well and good, and the deal looks ok (5.4% fixed), however there are hefty early repayment charges which i would like to avoid as this property is a bit of a project and i probably wont be there long (hence not bothered about the length of term). Ideally i need a mortgage with little to no early repayment charges, and am obviously looking for as low a rate as possible.

Obviously i will do my own research but thought id ask you people anyhow :) Any suggestions on current deals greatufully received.
 
Your best bet would be to go and seen an independant mortgage advisor (not one linked to a bank etc as they will try and sell you their banks products).
 
Most fixed rate deals do have redemption penalties (ERPs) during the fixed rate term. Most banks & building societies will do 2 year fixed rate, with no ERP after 2 years, or else go for a tracker that doesn't normally have ERPs. You just need to look around I'm afraid. There are magazines available that have tables that have literally all the lenders in and the best rates.
 
I've got an agreed mortgage at 4.95x (£180k) of me and my parents combined salary with HSBC.

The interest rates are very similar IIRC and repayments over 35 years. Interest only for the first couple of years (maximum overpayments at 30% or something per month).

This is only available to people who have graduated within the last 5 years though..

[Edit] Opps, 4.95 Times my earnings :o
 
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chippie said:
Your best bet would be to go and seen an independant mortgage advisor (not one linked to a bank etc as they will try and sell you their banks products).
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This isn't strictly true. We went to see an independent advisor but they weren't attached to all banks and therefore didn't give us a good comparison.
The HSBC mortgage I mentioned above was far better than any that the 'independent' could offer
 
Jez said:
I have recently submitted an offer for a property, and have finance agreed with direct line mortgages for 5x salary over the maximum term they would give me of 43 years.
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OMG :eek: :eek: - that sounds a horribly scary situation to be in 5 x salary on a mortgage and over 43 years!!! i understand that house prices are pushing people to take mortgages over longer periods of time like 30 years but 43 years!!.

You will be very unlikely to get any bank or building society to look at 5 x income - you will need to see an independent mortgage advisor etc to look at more specialist deals for you.
 
ci_newman said:
I've got an agreed mortgage at 4.95% (£180k) of me and my parents combined salary with HSBC.

The interest rates are very similar IIRC and repayments over 35 years. Interest only for the first couple of years (maximum overpayments at 30% or something per month).

This is only available to people who have graduated within the last 5 years though..
Click to expand...

Ohh, never heard of this before. Do many places offer a graduate mortgage? What other benefits do they have?
 
booyaka said:
OMG :eek: :eek: - that sounds a horribly scary situation to be in 5 x salary on a mortgage and over 43 years!!! i understand that house prices are pushing people to take mortgages over longer periods of time like 30 years but 43 years!!.

You will be very unlikely to get any bank or building society to look at 5 x income - you will need to see an independent mortgage advisor etc to look at more specialist deals for you.
Click to expand...
If you read all his post you will see why he is 'not bothered about the length of term'
Jez said:
This is all well and good, and the deal looks ok (5.4% fixed), however there are hefty early repayment charges which i would like to avoid as this property is a bit of a project and i probably wont be there long (hence not bothered about the length of term).
Click to expand...
 
booyaka said:
You will be very unlikely to get any bank or building society to look at 5 x income - you will need to see an independent mortgage advisor etc to look at more specialist deals for you.
Click to expand...

Au contraire... I went to NatWest only yesterday and was offered 5x my salary - first time buyer, no monthly repayments (ie debts).
 
Term means nothing. After a few years you can easily remortage back a 'normal' 25 year plan.

The initial long mortgage is often used to get on the ladder and have low payments fow a few years.
 
Adam said:
Ohh, never heard of this before. Do many places offer a graduate mortgage? What other benefits do they have?
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The benefits are largely lower repayments in the first few years of the mortgage. The only downside is if the market takes a drop (not *too* likely in the next couple of years) then you are in massive negative equity.

Note my edit to my original post too :o
 
It also depends on what your looking to do after you sell that house, if your still going to be wanting a mortgage for 5x your current salary you can simply port it to your next property. If your situation has changed in that time you can always add a second mortgage if necessary.

Its such a gamble what to do though. Myself and gf worked on the assumption that mortgage rates are likely to be heading up so opted for a higher interest rate of 5.08% but fixed for a longer term of 10 years.
 
booyaka said:
OMG :eek: :eek: - that sounds a horribly scary situation to be in 5 x salary on a mortgage and over 43 years!!! i understand that house prices are pushing people to take mortgages over longer periods of time like 30 years but 43 years!!.

You will be very unlikely to get any bank or building society to look at 5 x income - you will need to see an independent mortgage advisor etc to look at more specialist deals for you.
Click to expand...

Not really as much of a situation as it sounds. I have a lot of other income other than my declared salary, so the monthly payments are not an issue, and the length of term is irrelevent as i will likely remortgage as soon as the fixed period is finished. :)

Ive found a reasonably good deal at HSBC, 30 years for the same borrowing amount as direct line are offering, 5.17% fixed for 5 years, waived booking fee. £185 total start up fee including valuation and completion fee. Seems ok?
 
Jez said:
Ive found a reasonably good deal at HSBC, 30 years for the same borrowing amount as direct line are offering, 5.17% fixed for 5 years, waived booking fee. £185 total start up fee including valuation and completion fee. Seems ok?
Click to expand...

If you think 5 years isn't too long a time then doesn't sound bad.
 
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