Mortgages & that...

[Mike]

Long story short...

Whats the in's & outs of sorting a mortgage?

How do I know if Im getting a good deal?

Old house or new build ~ with regards to mortgage rate/monthly repayment (any difference?)

[Stuart]

No diff with old v new, new might get better deals but you will pay more for the equivalent.

If you get less than 4.5% I'd say it was a good deal

[mowgli]

basically you bend over the bank managers desk & he shags you very hard for as long as he wants...


mike, new builds are not a good investment, cos if you want to sell, you are up against yet more new builds.....they are better if you are raising a family, and need the space...

obviously, you are experienced & skilled enough to do up a property, so finding an older place that is in need of work will be a better deal, but remember the days of the 125% mortgage are long gone, so fixing it up will have to be out of your own pocket..

just apply everywhere, and see what deal they will give you

[Mike]

obviously, you are experienced & skilled enough to do up a property, so finding an older place that is in need of work will be a better deal, but remember the days of the 125% mortgage are long gone, so fixing it up will have to be out of your own pocket..

Aye Ive got no problems at all doing some serious DIY, even as far as a single storey extension Id tackle.

Ive got no interest in lending any more then I need & already have a hefty deposit, coupled with my current salary according to Lloyds (who I bank with, sent me a info pack, usful info, scary interest rates ) could bag me (as a single applicant) a good £130k mortgage. With Nicola's salary included it was waaaay over the scary 200k mark :/

Only reason Im got any interest in a new build is theres loads springing up around here & also near to both my soon to be old work & soon to be new work place. Could be worth an avenue of investigation maybe?

Stu, is 4.5% kinda the "going rate" ish so to speak? Also, why are repayment mortgages so farking much on the monthly payments compared to interest only? And how to interest only ones work? What happnes once all the interest is paid, is it just a case of remortgaging???

[Stuart]

Interest only is literally the interest on the loan, where as a repayment is the interest and some cash towards the loan. Tbh when we were looking interest only was only £100 a month cheaper, so common sense says repayment always.
You never pay all the interest, it's like renting the property from the bank
4.5 appears the going rate, some are less but the fees might be silly

[chimp007_uk]

I got a mortgage on a first time buy last year on a 1930's 3bed property, took out a 85%LTV over 25years, and I'm paying 2.78% on a 2 year deal.

One piece of advice I offer, is don't let the mortgage lenders do credit checks on you. Let one "hard to borrow from" lender do one, and then call it a day. Say to others that your fine and just want rates, all they'll say is they cant offer you a mortgage in principal. Everytime you get a credit check done, it lowers your credit rating, and mortgages have a bigger affect because the large sum that you're borrowing.

[Jeff16v]

Interest only might ask for a repayment vehicle now, it's not enough to say ill pay it off some time later. A repayment vehicle could be a savings policy/investment plan/other property with equity left.

Interest only is ok where you buy it cheap and do up, rent it out or sell up after a while and move on, but I wouldn't have though most banks will do an interest only as it looks like you cant afford to buy it really unless you are a developer and have other equity to secure it on.

4.5 is pretty good at the moment as sensible people have ended up on a variable rate or base rate tracker. These types of mortgages have all but disappeared at the moment. A year and a half ago fixed rates were at 6-7% or more.

[pottersrebel]

A new build could be a wise investment at the moment, i work for a big new build company and know that customers can pretty much name their price within reason on a site struggling to sell, ive heard off customers getting up to 50,000 off selected plots, just dont accept the price their avertising because with a bit off haggling you can get it for less and also when a site is finished the house price normally goes up

[Novasport]

Get a reputable independant Mortgage advisor. The guy we use does not charge and earns a referal from the mortgage company but he is independant so not biased toward ant one company.
He has renewed our mortgage 3 times and we have managed to reduce it from a twenty five year mortgage down to eleven years six months in the space of six and a half years .
We even got £300 cash back from our last renewal.