As with all things things doing your homework pays off. There's lots more info available now than ever before so look around the websites...

Try

 

Good point from Lancat about the shorter period.

Another one to look into if you want to get technical is how do they charge interest?
daily, monthly, annually?
if its annually, do they adjust for overpayments (ever/monthly/at the end of year)?

Its a minefield alright, but there is now very little that an IFA can offer that you cant get yourself, just look around.

robski

 

Anybody got the lowdown on mortgages? I could really do with a few pointers on this subject.

Many thanks in advance for any advice.

Mossman

 

Britannia building society have a couple of very very good ones. Under 6% fixed for 10 or 15 years!

Otherwise, if you go to excite.co.uk, they can link you to moneygator I think it is, give you a good idea on mortgages available.

or do you want more specifics like whats available fixed/capped etc

robski

 

Cheers Robski.

Do they have a site mate?

Any advcie re. fixed rate vs capped would also be very welcome!

Cheers,

Mossman

 

Hi Jon how's things?

Mortgages are a bit tricky - it kinda depends what you want and your own personal circumstances. I just got a fairly good deal from Birmingham Midshires (about 2.15 discounted on a variable rate for 2 years, no redemption penalties) but that's because I'm a contractor and they're cool about not seeing company accounts etc.

To be honest, I'd recommend talking to a broker. I used one in the city and although it cost me £195, they only bill you if they get you a mortgage (that's if you actually get the money). There's a couple of web sites around but be a bit cautious of so called "Independant" advisors as they often have a portfolio of only about 6 lenders (ie the ones with biggest commissions)...

Cheers mate

Richard

 

Mossman,

sorry mate no idea, Ive got the details at home, they only just been launched, I know that for sure.

Yes they are subject to what you want, do you want to know what you are going to be paying, do you expect to want to pay off lump sums etc etc

I will see if I can dig up any more detailed stuff.

If your going to go to an advisor, take the following approach. Find the best deal you can, once youve decide between fixed/capped/discounted etc etc, then go to see the advisor. Tell him what youve found, what you want, and say "if you can do me a better deal than this INCLUDING your fees then I will take a mortgage via you"

robski

 

Yorkshire BS are capping at 4.99% for two years if you have a 25% deposit.

 

Thanks chaps. Much appreciated!
25% deposit is possible!

 

Take advice from someone who knows what they're talking about. We're moving at the moment, and used the IFA (Independent Financial Advisor) at the agents who was very good.

We're with Yorkshire BS at the moment on a 5 year fixed 5.79%, and want to borrow more. As that product is no longer available, we're taking a different product.

There's one at 4.99% fixed for 2 years, and another at 5.69% fixed for 2 years. With the cheaper one, there's valuation and arrangement fees, with the second there's no fees and 250 quid cashback. The difference for us was 20 quid a month, so it was worth going for the 5.69 rate.

This is a simple example with one lender, so it just shows how complex it can get. Do use an IFA, even if it's the freebie offered by the estate agent. They still are covered and regulated, and have to adhere to the code of conduct, etc.

They may want to sell you life assurance or home insurance, but you're not obliged to take it or even listen to them.

Yorkshire Building Society have been very good, allowing us to fix another rate once our original fixed rate expired. They're also a mutual society and want to stay that way, which I think is a Good Thing!

Finally, the repayment vs endowment argument can be fun. We wanted security, so went for repayment. Endowments, despite bad press, are still popular.

Sorry for the essay. Hope it's some use.

 

Thanks Chiark!
Much appreciated!

 

Mossman,

you really want to start thinking about a few things if you are going to go and see an IFA, like stability of income etc

either that, or go and see a freeby estate agent one first to see what they consider.

Britannia was a 25% deposit jobbie, and 5.69% as well. I think Birmingham midshires had a good one as well.

One quick place to look is teletext. They have a summary of the best deals available (cant remember which page tho).

Im with Coventry building soc at the mo, they are highly recommended, and are often in the top few for paying the lowest amount over the term of a mortgage. If you move with the coventry they ignore any penalties and allow you to select one of their new mortages not all do, so bear this in mind if you may want to move.

Something to watch is the cheap rates for a few years often have very little impact on the APR over the whole term. At the moment its easy to change mortgages, but if this changes and the rates go up, who knows if this will continue. I know that my disposable income is going to drop vastly for the next 5 years at least, so I want to guarantee I wont be affected by a jump in interest rates if they happen within that time so I go fixed, 10 years is great for me!
When you look at longer term fixed rates they do have an noticable effect on the APR.

Virgin one accounts are supposed to be good if you have fluctuating income, and are happy to be linked to the base rate as opposed to fixed.

robski

 

Well the Bank of England are going to cut rates tommorow by at least 1/4 pc with more to follow ( its what i do for a living ....boring ) but the banks should start lowering interest rates

 

I'm with Staffordshire BS one of the few independants still left (http://www.staffordshirebuildingsociety.co.uk/). They seem to regularly get awards! (or do they all ) - Might be worth a look-see! 5% Cashback version helped in getting the scoob

Mick