mortgages where's the place giving the best rates on mortgages for first timer buyers? anyone any ideas? basically looking to borrow about 110% at the best possible rate. not sure about term time if that matters (probs does quite alot )
Re: mortgages northern rock do 125% mortgages... theyre called 'together' mortgages. rates are not bad right now too given the type of product and the LTV. http://www.northernrock.co.uk/mortgages/together.asp
A 110% mortgage is a terrible, terrible idea. Instant negative equity. If the bank ask you to make up the shortfall between your mortgage and your house value - you are in SOOO much trouble its unbelievable ... repossession, bankrupt .... not good.
they generally lend up to 95% of the property value secured against the property and 'top it up' with unsecured. the last thing a lender wants is negative equity nevermind the borrower.
Re: Re: mortgages I used to do repossessions & debt recovery on together mortgages. The 'together' part refers to an additional unsecured loan which is (obviously) not secured against the house and Northern Rock LOVE getting CCJs against you to recover it if you fall into arrears, as well as taking your house off you.
I wouldnt advise getting anything more than a 95% mortgage if possible, 100% MAX but never anything more. Considering the market at the minute houses arent going up in value by enough money to cover the additional borrowing. What is the reason for wanting 110%? It also depends on what kind of rate you want and what fees if any you want to pay. Some lenders dont charge you fees up front but for example on some Northern Rock mortgage they charge 2% pf what you borrow as ana rrangement fee then add it on to your mortgage so you end up borrowing more and charging you interest on it. The best rate ive seen recently is barclays tracker rate with no fees but its only available up to 80%, not too sure on fixed rates elsewhere as I am not a broker any more. The best fixed rate we (HSBC) offer is 5.99% which would be putting down a £499 fee, a valuation depending on the property price and a £30 completion fee. If you dont want to put any fees down it is 6.49%. We dont do mortgages for over 100% though and only 100% for graduates. With C&G (whoever mentioned that) you have to be careful of unannounced fees. My mortgage on my flat is with them and even if i pay my mortgage every month for the term then I STILL have to pay £225 in order for them to release the deeds. They also charge large fees for liasing with solicitors which they have to do as part of the job and also for mortgage statements etc. They also have a really high variable rate of 7.65% I think it is and if you ever do need to release any equity you have to release £25 at a time or else you MUST go on the variable rate which is extortionate.
Ps the term does make a difference, the longer term you have the more you end up paying back but the lower your repayments are. It also means you can more than likely borrow a little bit more than you would over a shorter period.
thats just what i saw off the advert though, and is only available up to 80% . Not sure what their other rates are like, Nationwide are always a good bet too
