Hello,

My partner and I are buying a place in London and we are looking for the best deal on a fixed rate for a 100% mortgage.

We earn a combined 66k and the place in valued at 237k..

Any ideas...from real wise people not trying to rip us up?

 Thanks

In the long run you would be better off saving up around 5% of the value and looking for a 95% mortgage, even if it means waiting a while. Most banks and building societies will be delighted to quote for a 95% mortgage while most wont want to talk about 100% mortgages and those that do will, of course, charge a higher interst rate than you'd get for a 95% mortgage. Plus, because your choice will be limited, you are more likely to be dealing with some organisation that you haven't heard of before.

Hi homebuyer,

Are you looking for 100% or 100+%? Do you have the funds for legals, valuation and stamp duty? As the property is in London is it a traditional house or an apartment or flat? My advice is to see a broker, but I can give you some idea of rates and best lenders before you see them. How many years are you looking for and is it a repayment mortgage? 

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Regards

Ian

We have saved up the 5% but need to pay for the legals and furnitures...

Most lenders agrees for 95 % + unsecured loan at the same rate...seems quite standard?

Thanks for your advices!

Homebuyer 

We have 5% for the legals etc....and furniture.

So 100% is ideal. 100%+ would allow for little extras like the new kitchen, but we would need only 2 or 3k.

It's a conversion in a solid house.

We are looking for a repayment mortgage for 26 or 27 years

Thanks for your views.

Hi,

There are a number of sub 6% deals if you are professionals ( teachers. solicitors, doctors etc.) with Scottish Widows and Ulster Bank. After that you are looking at Coventry, A&L, Newcastle, C&G, there are others but a lot will depend on your attitude to fees against rate with a lot of these products.

I quite like the Mortgage Works product 100% fixed 6.38 until 31/12/2012 499 Arr.Fee. Free valuation and no higher lending charge. I tend to look at 5 year deals for 100% buyers as the equity takes a little time to build up. Over 25 years the payments would be around 1,600p.m.

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Regards

Ian

That's good news the best I was offered was 6.59%...

I take you're point for the 5y fixed, and if it's portable we can still move.

Not to say that none of the brokers contacted ( one being recommended by this site)came up with this one...would you recommend that I tell them?

I've been on their site it's for brokers only...do you know someone who would do this for us.

Thanks,

 

Hi,

I thought I'd do a bit more digging on the product and the reason for other brokers not recommending it is that the max LTV on converted flats is 90%, sorry about that. But I found the next best was Newcastle @ 6.50% for the same period, 275 val, 499 booking fee. Just over 1,600 p.m. It is a bit difficult to provide exact details without fact finds that is why you saw a broker and they are not far off anyway, also they have the benefit of much greater detail;-) Yorkshire seem to be the only 6.59% with a .5% cashback, is that the one you were offered?

Smack on the hand for me!! 

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Regards

Ian

Hi Ian,

The broker did not mention the lender...I would imagine Yorkshire is the one she is thinking about.

Newcastle is a no no for us .... we are over 35!! Sad isn't it?

I don't mind giving you more facts about us if it helps you?

Thanks,

Homebuyer

Hi,

You have already been through the interview process and it should be likely that with all the info all advisers should come up with the correct product. You know how many questions need to be asked and it is unlikely that the thread could manage that. I have just spent a little while looking at as many products that I can between painting the woodwork and answering posts, and products between 6.4 and 6.9 have criteria that can decline individuals for quite trivial reasons, so it becomes a minefield to advise confidently on individual circumstances. If it would help and you see the adviser for the recommendation or receive the paperwork, I or some of the other advisers on the site could comment on the deal offered. It is forum etiquette not too advertise our companies for one to one consultations I'm afraid.

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Regards

Ian

Hi Ian,

I will come back with our brokers findings.

I am already grateful to see that someone can come up with honest and professional view.

It's so rare nowadays!

Last question: if we were to wait for the whole market to settle, do you think we will end up with higher borrowing rates or it's likely to stay the same?

Speak soon.

Homebuyer

PS: you did won your smack on the hand anyway for being very helpful!!!

Hi,

Lol, The big question you ask is answered by expert analysis and is thus: Bank of England rates are expected to fall to around 5% during the coming year, that is why a lot of clients are deciding to take on trackers. Fixed rates however have a mind of their own, they have risen with some lenders but some of the High Street boys are being brave enough to start the competition off by lowering them. The 100% market does tend to remain quite stable but there will be a possibility of rate drops once the BBR does decide to fall. 

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Regards

Ian

Hi Ian,

They found us a 6.38%, 5y, 100% LTV from Mortgage Works, booking fee paid upfront £499.

No high lending cost, no unsecured loan.

Difficult to find better nowadays I believe..?

Kind regards,

Homebuyer

 

Hi,

I do believe that was the product I first suggested, but I was also aware that the maximum lending was 90% LTV on converted flats. From your previous post I thought that was the description of the property, please check this. I hope they have relaxed their criteria and now allow these properties?

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Regards

Ian

Hi Ian,

Just spoken to the broker, MW is now part of Nationwide and they have changed their policies and are fine with 100% LTV for converted flats!!

That's pretty good deal isn't it?! But apparently won't e around for long.

Thanks' for pointing me in the right direction.

Have a fantastic week end because I will!!

 

Homebuyer