Mortgages

[Babylon]

I'm currently looking for a house and will soon need a mortgage!! Two things really, firstly...

Does anyone know of any good mortgages out there?

Secondly...

Say I got a 2 year fixed rate mortgage. You are usually fixed on a good rate for those two years, it then jumps up say £100+. After the two years, can I move my mortgage to a new lender and get another fixed two year period on the good lower rate.

Then after that fixed period move again and so on. So that I avoid ever paying the extra 100+ a month? Obviously you have to read the small print to make sure I can move and that there aren't any huge fees for doing it.

Someone at work says that's what they will do when their fixed period is up... it seemed a bit to easy?????????

 

[Melton Fox]

Say I got a 2 year fixed rate mortgage. You are usually fixed on a good rate for those two years, it then jumps up say £100+. After the two years, can I move my mortgage to a new lender and get another fixed two year period on the good lower rate.

Yes, but you can leave before the 2 years is up but you'll be subject to an early redemption penalty. After the 2 years (or specified period) is up, then you a free to move at no cost

One of my bessy mates is a mortage advisor and every time my fixed rate period ends, he moves me onto the current best mortgage

 

[Brauny Blue]

I'm currently looking for a house and will soon need a mortgage!! Two things really, firstly...

Does anyone know of any good mortgages out there?

Secondly...

Say I got a 2 year fixed rate mortgage. You are usually fixed on a good rate for those two years, it then jumps up say £100+. After the two years, can I move my mortgage to a new lender and get another fixed two year period on the good lower rate.

Then after that fixed period move again and so on. So that I avoid ever paying the extra 100+ a month? Obviously you have to read the small print to make sure I can move and that there aren't any huge fees for doing it.

Someone at work says that's what they will do when their fixed period is up... it seemed a bit to easy?????????

Imo i'd have a 5 year fixed rate deal. You won't get so much off as the 2 year deal but it will give you a longer period of stability in the early years of your repayments.

 

[Babylon]

Yes, but you can leave before the 2 years is up but you'll be subject to an early redemption penalty. After the 2 years (or specified period) is up, then you a free to move at no cost

One of my bessy mates is a mortage advisor and every time my fixed rate period ends, he moves me onto the current best mortgage

Excellent news.... why on earth do people stay with the same mortgage providers and pay the extra if you are free to move and get better deals. It's costing them a fortune?!?!? They can't be bothered i'd guess!!

 

[Steven]

Remember to pay daily if you can or weekly.

 

[Jeff]

This site is good for comparing the different mortgages available.

 

[Babylon]

This site is good for comparing the different mortgages available.

Nice one, cheers guys.

 

[drew]

I'm looking at a 10 year fixed rate with Woolwich right now. I think we'll be seeing a 1-1.5% rise over the next 5 years and want to get a good rate now.

It still works out less than what i'm paying now.

 

[Lboro fox]

Northern Rock are good for FTB's, especially if you have a small/zero deposit, or if you need a high salary multiplier to the house.

Remember though,

Estate Agent = Lying Scum, IMO, dont believe a word they say, take everything on face value.

 

[Babylon]

Northern Rock are good for FTB's, especially if you have a small/zero deposit, or if you need a high salary multiplier to the house.

Remember though,

Estate Agent = Lying Scum, IMO, dont believe a word they say, take everything on face value.

I have a big fat deposit!!!

 

[Lboro fox]

I have a big fat deposit!!!

I had one, but i was better off without it, the mortgage advisor could not explain why!!!

 

[Melton Fox]

I had one, but i was better off without it, the mortgage advisor could not explain why!!!

More deposit = Less to borrow = Less for the advisor

 

[Lboro fox]

More deposit = Less to borrow = Less for the advisor

Possibly, though it was more to do with Northern Rock, i was better off not having a deposit, but then making my first payment £7k than putting the money down as an actual deposit. All bollocks IMO.

 

[LS6_Fox]

More deposit = Less to borrow = Less for the advisor

Nail on the head methinks.

I'm looking to buy a house soon and the mortgage advisor I spoke to advised me that it would be in my best interest to get a 10% deposit, as it means they would be able to find me some much better deals. Personally I'd look at a 5 year fixed mortgage, but depending on your circumstances (i.e. you might want to move after a few years) then maybe two year fixed is the way to go.

 

[homer]

Don't do it, Babs

Property is theft

 

[Leesoh]

I'm currently looking for a house and will soon need a mortgage!!

I could be really pedantic here....
:icon_bigg

 

[Babylon]

I could be really pedantic here....
:icon_bigg

Go on then!!

 

[Leesoh]

Go on then!!

Oh, go on....
I have recently found out I had the mortgage, and the bank has lent me money against it, so when they said they were offering it to me, turns out they were lying. Ooh, the nasty cretins....

 

[KLFox]

A mortgage broker who is not affilated to any lenders but has access to all lenders would be a good start. Rather than a building society or a bank who will push only their lenders which may not have the best rates for you.

The 10% is correct as I recently moved and with the equity we had over ten percent to put down. Our mortgage broker showed us the offers if we had 5 and 10% deposits. The offers with 10% were lower in interest and offered over longer terms.

We took 4.5% fixed over 3 years which was not much over the tracker rate at that time. If you have a bit of spare cash you could take the tracker option. But you must be prepared to take the risk if interest rates rise which there seems more chance of these days rather than fixed rate.

 

[fcukcov]

I think the things is babylon that every person has indivdual requirements and whilst one mortgage lebnder is perfect for some people it wont necessarily be the right one for you.

As someone who got their first mortgage earlier this year I can best advise you to get out there and meet with a mortgage advisor and then as many of the high street banks/lenders/building societys as possible. Also try places like the money supermarket.com etc. This will give you the best range and then you need to sit down and decide which is the best for you. it is very daunting I admit but it is the only way Im afriad.

As someone has said Northenr rock are supposedly good for first time buyers but I found that they were only mortgageing som much of the money and then the rest was an unsecured loan which is not something that suited me at that time.

another good peice of advice if it is your first house is to speak to your parents/other couples and get them to write down rouyghly what their bills are per month/quarter, then put together a n idea of your totla outgoings and incomings on say excel, this will help you to estimate what sort of mortgage payment you can then afford.

good luck anyways, it will all be alright.