M2RTY
Member
Registered: 25th May 01
User status: Offline
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i have had a quick look around and usually don't rush into anything, but time might not be on my side for this one (talking a few weeks max all being well)
I am with HSBC bank and also Darlington Building Society.
Looking for a 3-5 year fixed rate mortgage. Here is a quick comparison:
HSBC =
Rates from 6.54% to 7.44%. Interest rate fixed until a specific date then the HSBC variable rates applies until the end of the term. 7.2% APR
DBS =
5.84% until, and including, 30.06.2010 then changing to our standard variable rate, which is currently…
7.82% and remaining on standard variable rate terms for the rest of the mortgage.
The overall cost for comparison is 7.7% APR
That is based on a property worth £70,000 and they will lend me £66000
I take home £1600 a month after taxes and student loans etc
is the DBS a good deal? Unsure how it works as HSBC looks more but has less APR
Would you recomend going for a 25 year or 20 (or even 15) year mortage if you could afford it?
I only plan to live here for 2/3 years and then rent it, as by then my other half will be working, we will be on over £50k joint gross income and will be looking to buy a bigger house
what else do I need to concider? Fees etc? Won't be buying through an estate agent
any advice would be appreciated - see my other thread too 
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Mad Moe
Member
Registered: 14th Jun 01
Location: Northumberland
User status: Offline
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Not sure on the actual figures but I have a friend who is an Independant Mortgage Advisor and he was was telling me Northern Rock are taking some beating at the moment. If you'd like his contact details I'd be more than happy to u2u them
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whitter45
Member
Registered: 15th Nov 02
Location: Norton
User status: Offline
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do not get a long term fixed rate as any can happen with the interest rates at the moment
I see them increasing again soon but in years to come i feel they may drop again as reposession of houses is increasing month on month
TBH with your wage and the fact you borrowing very little I would not worry
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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You need to consider the fees and when the fixed rate ends you'll need to move it about to avoid moving on to SVR. So you've your set up cost of this one, then whatever final fee you pay, plus set up on the next fixed etc.
Moving between fixed deals every few years is a fairly sensible idea as its safe, but it can actually work out more expensive due to this. You know where you are though month on month and of course you are protected from IR rises in the short term.
The only other thing you might want to consider is getting the house valued higher and borrow less. Your current LTV is 94% which means you're not currently eligible for the better deals.
Example
HSBC Fixed 3yr over 90% LTV 6.94% - you would be on this one.
HSBC Fixed 3yr max 90% LTV 6.54%
Saving .4% if you can either haggle the value or or borrow less.
£499 fee on that though - thats not the best news in the world. For that amount of borrowing you might be actually better off going for a higher rate and no fee.
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Half Pint
Member
Registered: 25th Mar 02
User status: Offline
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Ian,
How does that work with getting the valuation higher than you Pay or Borrow?
Surely this is cooking the books!
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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Yeah I was thinking in terms of a remortgage, might not be as easy to pull it off if you also want to buy the place.
I haggled mine up a few grand to drop down a threshold and get a better rate, but then I wasn't buying it again.
In this case the only variable Mart has control over is the amount borrowed. Its only a few grand away. I personally would have that on 0% cards.
[Edited on 02-08-2007 by Ian]
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M2RTY
Member
Registered: 25th May 01
User status: Offline
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i could but 10,000 down no problem, 20 if i wanted to push the boat out
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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Its worth being in the lower threshold although presumable you'll need some cash for the job.
90% LTV on a 70k house is 63 to borrow.
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p4uls corsa
Member
Registered: 2nd May 05
Location: BRADFORD
User status: Offline
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quote:
Originally posted by M2RTY
i have had a quick look around and usually don't rush into anything, but time might not be on my side for this one (talking a few weeks max all being well)
I am with HSBC bank and also Darlington Building Society.
Looking for a 3-5 year fixed rate mortgage. Here is a quick comparison:
HSBC =
Rates from 6.54% to 7.44%. Interest rate fixed until a specific date then the HSBC variable rates applies until the end of the term. 7.2% APR
DBS =
5.84% until, and including, 30.06.2010 then changing to our standard variable rate, which is currently…
7.82% and remaining on standard variable rate terms for the rest of the mortgage.
The overall cost for comparison is 7.7% APR
That is based on a property worth £70,000 and they will lend me £66000
I take home £1600 a month after taxes and student loans etc
is the DBS a good deal? Unsure how it works as HSBC looks more but has less APR
Would you recomend going for a 25 year or 20 (or even 15) year mortage if you could afford it?
I only plan to live here for 2/3 years and then rent it, as by then my other half will be working, we will be on over £50k joint gross income and will be looking to buy a bigger house
what else do I need to concider? Fees etc? Won't be buying through an estate agent
any advice would be appreciated - see my other thread too
most companys dont let u rent out your house on a normal mortgage and will terminate your mortgage if they find your renting it out so you will need to change mortgage on it when you move or make sure you get a mortgage that allows you to rent it in the future
[Edited on 04-08-2007 by p4uls corsa]
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M2RTY
Member
Registered: 25th May 01
User status: Offline
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yeah i will be changing in 2/3 years and buying a second house to live in and keep this one on a buy-to-let mortgage
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Russ
Member
Registered: 14th Mar 04
Location: Armchair
User status: Offline
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quote:
Originally posted by whitter45
do not get a long term fixed rate as any can happen with the interest rates at the moment
I see them increasing again soon but in years to come i feel they may drop again as reposession of houses is increasing month on month
well i guess we can ignore all the experts and the fact that there is a constant need for houses in britain, expertscan only see this increasing as britains population increases so i wouldnt be against long term fixed rate, if anything, if you want stability, go for one.
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