Mortgages

[tinycowboy]

I went for a five year fix too - although a couple of years ago. For me, peace of mind would be worth having over a possible but not guaranteed £60 per month saving.

 

[hybrid_x]

Have just been given a quote on a new mortgage and not to sure what to do. My offer is £760.00 per month on a 2.19% tracker rate or £820 at 3.19% on a five year fixed. This is to borrow £111,000 over 14 years. Am inclined to stick with the five year fixed as I know what I'm gonna pay and don't need to worry about interest rises. However Does anyone think the rate tracker rate will go above 3.19% (banks rate) over the next five years. Any help/advice would be appreciated.

imo, anyone tying themself to a £111,000 (+ another 70% or so) debt for the next 14years is mad.

saying that the UK IR is going to go up starting next year - this is not the time to max oneself out with a mortgage.

banks will be the new estate agents in 4 years.

 

[Simster]

Is it possible to get an interest-only mortgage without proof of an investment vehicle? My current lender wouldn't entertain the notion and I think it might now be a requirement to either have a repayment mortgage or a proven investment vehicle I designed to pay back the debt. But I've got a hefty mortgage but very fortunately for me, I also have a large amount of equity and I don't really see the point of busting a gut to pay off the mortgage if I can instead just pay the interest and then pay back the capital when I come to sell in a few years time.

I'd be interested to know if there are products out there that let me do this.

 

[Uncle Spielberg]

Is it possible to get an interest-only mortgage without proof of an investment vehicle? My current lender wouldn't entertain the notion and I think it might now be a requirement to either have a repayment mortgage or a proven investment vehicle I designed to pay back the debt. But I've got a hefty mortgage but very fortunately for me, I also have a large amount of equity and I don't really see the point of busting a gut to pay off the mortgage if I can instead just pay the interest and then pay back the capital when I come to sell in a few years time.

I'd be interested to know if there are products out there that let me do this.

Depending on ltv, Santander, Skipton and Leeds.

 

[Westdene Seagull]

imo, anyone tying themself to a £111,000 (+ another 70% or so) debt for the next 14years is mad.

saying that the UK IR is going to go up starting next year - this is not the time to max oneself out with a mortgage.

banks will be the new estate agents in 4 years.

And your suggestion for buying a property is what exactly ?

 

[hans kraay fan club]

2. Any thought to borrower's overpaying possibilities going forward when advising on here what product to take? Tracker wins hand over fist if there is a good chance borrower's income will dramatically rise over locked in period enabling early pay off/big overpayments which can be done with a tracker but not fixed.

My last two fixed term deals with Santander have allowed overpayments.

 

[Simster]

Depending on ltv, Santander, Skipton and Leeds.

That's helpful. Cheers, US.

imo, anyone tying themself to a £111,000 (+ another 70% or so) debt for the next 14years is mad.

saying that the UK IR is going to go up starting next year - this is not the time to max oneself out with a mortgage.

banks will be the new estate agents in 4 years.

Mad? Doesn't that rather depend on your income. It doesn't seem much if you're earning, for example, £100k a year.

 

[wakeytom]

1% increase over 3-5 years ? So 1.5% BBR in 2017-2019 ? I think it will go up to 3% during that period. Even that is the lowest it has been for around 400 years.

I am not sure if they want/have the ability to increase by that much but will be interesting to see and is all IMO - if they wanted a rate rise then the unemployment figures were in a position using there own rules to increase but they didnt and still not had 1 vote of yes

 

[Creaky]

I've never had a fixed rate mortgage. My current mortgage is just BBR + 0.6% so haven't repaid it but put the money into cash ISAs.

My query is, what happens at the end of the 5years if personal circumstances have changed and you don't qualify for a new mortgage?

 

[Bozza]

I've never had a fixed rate mortgage. My current mortgage is just BBR + 0.6% so haven't repaid it but put the money into cash ISAs.

My query is, what happens at the end of the 5years if personal circumstances have changed and you don't qualify for a new mortgage?

You'll revert to lender SVR - the same as any mortgage when you reach the end of the offer period.

(I had to give up a BBR + 0.49% mortgage when I moved from Somerset back to Sussex. Slightly annoying. )

 

[Herr Tubthumper]

I just got a 5-year fixed at 3.19% from Halifax. No arrangement fees- in fact no fees at all. Might be worth a look.

The economy is picking up and house prices are starting to look like a bubble again, so I would expect interest rates to rise and possibly quite soon. Go for a fixed rate.

Mark Carney made some noises about having a range of tools he can use OTHER than the traditional approach of interest rates to control house prices some months back.

 

[Uncle Spielberg]

My last two fixed term deals with Santander have allowed overpayments.

You are correct hans. There is no difference between fixed and tracker to making overpayments, usually up to 10% of the balance pa without a penalty. The only ones with unlimited overpayments would have been deals with no early redemption penalties.

 

[Uncle Spielberg]

Is it possible to get an interest-only mortgage without proof of an investment vehicle? My current lender wouldn't entertain the notion and I think it might now be a requirement to either have a repayment mortgage or a proven investment vehicle I designed to pay back the debt. But I've got a hefty mortgage but very fortunately for me, I also have a large amount of equity and I don't really see the point of busting a gut to pay off the mortgage if I can instead just pay the interest and then pay back the capital when I come to sell in a few years time.

I'd be interested to know if there are products out there that let me do this.

Santander must have at least £ 100k equity, up to 50% can do all interest only , over 50% up to 75% ltv, can do 75% interest only and 25% repayment.

 

[Buzzer]

Uncle Spielberg - just a word to the wise. You're getting dangerously close to giving financial advice. Might be sensible to caveat your responses on here just to cover yourself.

 

[Uncle Spielberg]

Uncle Spielberg - just a word to the wise. You're getting dangerously close to giving financial advice. Might be sensible to caveat your responses on here just to cover yourself.

Fair comment. It is all generic so far and any enquiries attended to with specifics but thanks.

 

[pauli cee]

Second this, saved me near on £150 per month. Would well recommend Gareth

Interesting.
Is he cheap?

 

[Vegas Seagull]

Uncle Spielberg - just a word to the wise. You're getting dangerously close to giving financial advice. Might be sensible to caveat your responses on here just to cover yourself.

Inaccurate assessment

 

[Uncle Spielberg]

Interesting. is he cheap?

I get satisfaction in helping my clients as best as I can. Same as any other business. Been doing this for 24 years now. Always do my best.

 

[Uncle Spielberg]

Inaccurate assessment

I believe it was a well intentioned post so no worries at all.

 

[Super Steve Earle]

That's not the job of the bank. They can only point out the features of their eon product.

Op would need to pay for advice or use the services of s broker (again with a fee) to get advise on other market products.

Fortunately for him, advise is free on here and it comes from a mix of real world people

Actually that is the job of the Bank. Under the recent Mortgage Market Review they must advise which of their products is right for the borrower after conducting a review. See below:

5) Ban on non-advised sales for all but the most basic of contract variations and re-defining the definition of advice. Advice would be any sale that stems from any sort of consumer-seller interaction, in which case the seller will have to assess suitability.

You are correct regarding other lenders products, but HSBC should advise the OP which of theirs is most suitable - the Fix, the Tracker or something else, which I believe is what he was referring to. Handily, I am in the real world too and can also spell.