Current mortgage situation question

Sorry to hijack but what would be a good interest rate at the moment? Probably would be paying around 20% deposit but haven't a clue what to look for. Think I'll need to read some beginners guides!
 
Went to talk to the mortgage man last week because I am buying a house with a friend. We were told they will laugh you out of the bank unless you have anything less than £20k to put down as a deposit.
 
look on moneysupermarket.com and other such sites for a good overview.

There are loads of 90% mortgages, obviously the more deposit you pay the cheaper the rate and the more chance of getting it approved.
 
What about a buy to let, does the same still apply?

Would it make a difference if I had a house in France that I owned without a mortgage do you think?
 
Only advice I can give is that you avoid the high street mortgage places ie banks and building societies.
Go to an independent 'all the market' mortgage adviser as he will be able to offer you good deals that aren't on the high street.
My adviser got me a mortgage with an interest rate lower than any high street vendor.
 
A lot of the good deals ARE at the high street banks at the moment, HSBC and Barclays in particular
 
knip said:
Went to talk to the mortgage man last week because I am buying a house with a friend. We were told they will laugh you out of the bank unless you have anything less than £20k to put down as a deposit.
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It would depend on the Loan to Value bracket that you would fall into. If you are putting down 20k against a 250k house then yes you will get laughed at, obviously if you only wish to purchase a 100k flat then this would be perfectly feasible.

Barclays/Woolwich seem to offer the best current deals.
 
I asked when I was in there last week how much I could borrow if I wasn't doing it with my friend (she has the deposit but needs my wage too) and the mortgage man who we saw said that I would have about a 1% chance of getting a mortgage without any kind of deposit in the current circumstances.

As it is we are only borrowing just over 100k anyway (because of her deposit) but she couldn't do it on her wage even with her hefty deposit, and I can't do it on my half decent wage with no deposit.
 
ringo747 said:
Sorry to hijack but what would be a good interest rate at the moment? Probably would be paying around 20% deposit but haven't a clue what to look for. Think I'll need to read some beginners guides!
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5.5% fixed rate of 2-5 years is probably a decent offer at the moment, lower the better obviously but with a 20% deposit you should be getting in near the 5% mark.

A few people I know are having a huge problem getting mortgages Oddly we're looking at taking equity from our flat and using it as 10% deposit on a £125K house, mortgage rate quoted at 90% LTV was around 6.4% fixed for 5 years. That was agreed in principle, bare in mind that means us having TWO mortgages, granted the flat is absolutely tiny.

If you've built up a good credit history with a bank then I think you're in with a good chance, we actually turned that offer down, will be going with a different house so will have to go through the process again and cross our fingers that we're still accepted.

It still feels far more random than it did when I first took out a mortgage 7 years or so ago, rather than it being a tightening of financial institutions belts, it's more like them flipping a coin and if it lands on it's edge you get approved.
 
yeah buts what your ltv

anyway, seriously don't buy be very patient.

the current financial situation is unsustainable and you could end up in a nightmare
 
10% > 20% deposit makes a HUGE difference in interest from what I've seen past few months.

We were saving for a 10% but after speaking with the mortgage lady at the bank is 20% of nothing makes so much more sense tbh
 
Slam62 said:
yeah buts what your ltv

anyway, seriously don't buy be very patient.

the current financial situation is unsustainable and you could end up in a nightmare
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Fixed rate mortgages are becoming the norm, that's not a dangerous investment especially when house prices are very low. There's no reason for people to get a mortgage now if they're sensible about the amount they take out.
 
Kami said:
Fixed rate mortgages are becoming the norm, that's not a dangerous investment especially when house prices are very low. There's no reason for people to get a mortgage now if they're sensible about the amount they take out.
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house prices are not low they are hugely over valued, any one who buys now runs a real risk of -tive equity or a run down of thgeir deposit leading to being stuck on a high interest rate.

I may be wrong but the risk is there and if it happens you're stuck.

I am risk averse
 
Slam62 said:
house prices are not low they are hugely over valued, any one who buys now runs a real risk of -tive equity or a run down of thgeir deposit leading to being stuck on a high interest rate.

I may be wrong but the risk is there and if it happens you're stuck.

I am risk averse
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There is always going to be an element of risk in the purchase of property, nothing is guaranteed but I would also say that if you can, now is the time to buy. Compared to previous years housing prices are low so you are more likely to gain than lose if you buy now.
 
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