Mortgage advice for 1st time buyer

[Gregg]

Ok i have put an offer in on a 160k house and require a mortgage for about 100k on my own.

From what i earn getting the 100k loan isnt really an issue i have no bad credit etc etc.
So the offer on the house has gone in, im going in on wednesday to talk to the advisors about mortgages fees and surveys and getting the girlfreind added on in a yr or two.

So, ive had a little poke around and done some online mortgage payments.
100k over 25 years paying back £640 ish a month at 6% APR which is Fixed rate for the 25years.

What have other house owners gone with both in terms of bank and mortgages? I know i dont want a variable mortgage as i like to know that even if the market drops or goes up im gonna be paying the same out each month.

Help if you can cheers with any advice

[steve7702]

There is so much talk at the moment about rates its hard to say. I also believe from a friend who spoke to 3 mortgage advisers, that they are all saying different things.
It isnt easy to know which route to take at the moment.
At least with a fixed you know what your going to pay each month over a period of time. Although if the rates do drop again a tracker would be nice.

If you know what you want, use a web service and sort your own mortgage out, its pretty simple and you get 50% of the fee the Mortgage broker would have earned.

Good Luck

[MalcGSI]

It's worth getting a mortgage that calculates the interest owed on a daily basis and not annually as this can save a fair bit.

[m8internet]

6.00% APR on a 25 year fixed term seems a bit high to me, given that flat rate mortages are about 6.60%

I am now on my third rolling mortgage and got YBS down to 4.74% fixed for 10 years
I could have fixed the rate for the entire 25 years, but it was 5.14%
The other two mortgages I have are 4.66% on 15 years and 4.91% on 15 years, also with YBS
All three return to a capped rate of 6.60% until term completed

When I comparing like with like finance, I always look at the "total to pay"
That way for a £50,000 loan, hire, mortgage, etc. it is what it is going to cost me after the same period of time

[parapaul]

Also, consider a capped rate rather than fixed - best of both worlds. You know the maximum you'll pay, but if rates go down again (yeah, right!) you could save money.

I went with Abbey last summer because they were doing a marketing thing with no fees of any sort. Saved me several hundred pounds which I didn't have to hand at the time. Apparently Northern Rock are good....

[Gregg]

lol @ Northern rock.

I am having free advice from the estate agents in house people about mortgages, said they can get me a better rate than if i sorted it myself.

All i know is i dont want to pay interest only, i dont want lower rate for 2 years then a massive jump.

Cheers people

[Harry]

i had to renew the mortgage in october as the 2 year fixed rate period was ending. we were enjoying a fantastic 4.29% for just over two years, it's jumped up to 5.69% now and i decided this time to go for a variable mortage, when the elections come up next year i'm sure the rate will drop for the few months leading up to it, i think this happens historically in order to full into thinking we've got such a good government.

anyway, the rate that we've got at the moment is stuck for another two years and i'll be changing again when this current offer ends, and then it might be the case that we get back onto a fixed mortgage.

seeing as you're a first time buyer can you not take advantage of the various schemes that are out there for first time buyers? as i said, we got a really good deal at 4.29% two and a bit years ago because we were first time buyers.