Mortgage Question - How much/Payment

[scotal]

Road Pest said:

I work for a broker in quality control, Scotal is a qualified advisor (from what I can tell), he's better positioned to advise you if you want him to.

Are you compliance RP?

I am a broker yes. Exams coming out of my ears, most of them uselss.

[scotal]

missdiane said:

Fixed/tracker rates are probably safer

Fised rates are safer?
Tracker rates are safer?

A rate that is fixed, but then tracks is safer?

[paul26982]

scotal said:

paul26982 said:

not being big headed but fantastic, also no daft default etc

good for you.
RP's idea of around 6% is about right.
You'd be pushed into a 2 or 3 year fixed rate, and like I said you'd have to pick a lender that was happy with the deposit being in part paid by the developer.

thanx, you a star

[scotal]

paul26982 said:

thanx, you a star

y'know something you're right I am.

If you want me to run through things with you drop me a PM.
I can give you an accurate idea of what you're getting into andwho would lend to you then. I can';t do that on a public forum. (Quite apart form the advertising rules on here the FSA would have a blue fit.)

[paul26982]

no problem i'll remember your name

just makes me think' there lower rates out there than 6%, wonder if i could get it alot lower, sorry for all the questions im crap at things like this.

[missdiane]

scotal said:

missdiane said:

Fixed/tracker rates are probably safer

Fised rates are safer?
Tracker rates are safer?

A rate that is fixed, but then tracks is safer?

Safer in the sense of, my monthly payment is £x amount and will not be changing for 5 years.
Maybe safer was wrong word.

[scotal]

paul26982 said:

no problem i'll remember your name

just makes me think' there lower rates out there than 6%, wonder if i could get it alot lower, sorry for all the questions im crap at things like this.

The only way you will lower the rate is to make your deposit larger.

Mortgage rates are tiered. The best rates available are for a sub 60% loan to value (LTV) which would mean a deposit of £59580. The next major tier is at 75% LTV so a deposit of £37238.
(There are loans tiered at 70% and 80% as well.)

Trackers are currently cheaper than fixes at those lower tiers, but you would be ushed to a fixed, because the banks will st themselves if they have alowed someone to get into high ltv mortgages with variable rates that could shoot up.

As it stands trackers can go down by a maximum of 0.5%, but tehy can go upto who knows where.
by making you fix the banks are fixing your payments for a while, thus protecting themselves from claims of irresponsible lending, and protecting you form a major pain in the arse if rates rise as sharply as they fell.

[scotal]

missdiane said:

scotal said:

missdiane said:

Fixed/tracker rates are probably safer

Fised rates are safer?
Tracker rates are safer?

A rate that is fixed, but then tracks is safer?

Safer in the sense of, my monthly payment is £x amount and will not be changing for 5 years.
Maybe safer was wrong word.

Safer was the right word.... as was fixed..... its the tracker that not safe.
Uncapped trackers have no ceiling.

ETA of course if the bank doesnt raise rates the tracker might be the best bet...... thats the gamble.

Edited by scotal on Friday 27th March 22:43

[paul26982]

im alittle confused, lying tired in bed, right i thought we would be looking for a 85% mortgage as we paying the 15%' i and the Builder, So...........

you predict i'd be paying 6% and form the calculator on a 25 year plan its £860 per month

[Road Pest]

scotal said:

Road Pest said:

I work for a broker in quality control, Scotal is a qualified advisor (from what I can tell), he's better positioned to advise you if you want him to.

Are you compliance RP?

I am a broker yes. Exams coming out of my ears, most of them uselss.

I work front end on appointments for advisors so compliance and lender's criteria is what I work with day to day to make sure we aren't sending an advisor into a minefield and that we can place the business. It's interesting how things are developing at the moment.

[scotal]

There or thereabouts, possibly slightly less (5.84% springs to mind, which with fees would be about £810 per month fixed for 3 years.
(25year term, on a repayment basis.)

[scotal]

Road Pest said:

scotal said:

Road Pest said:

I work for a broker in quality control, Scotal is a qualified advisor (from what I can tell), he's better positioned to advise you if you want him to.

Are you compliance RP?

I am a broker yes. Exams coming out of my ears, most of them uselss.

I work front end on appointments for advisors so compliance and lender's criteria is what I work with day to day to make sure we aren't sending an advisor into a minefield and that we can place the business. It's interesting how things are developing at the moment.

Ain't that an understatement.

[Road Pest]

scotal said:

Road Pest said:

scotal said:

Road Pest said:

I work for a broker in quality control, Scotal is a qualified advisor (from what I can tell), he's better positioned to advise you if you want him to.

Are you compliance RP?

I am a broker yes. Exams coming out of my ears, most of them uselss.

I work front end on appointments for advisors so compliance and lender's criteria is what I work with day to day to make sure we aren't sending an advisor into a minefield and that we can place the business. It's interesting how things are developing at the moment.

Ain't that an understatement.

Oh, I also do a lot of work on marketing and lead generation. That's a very interesting area to work through the red tape.

Edited by Road Pest on Friday 27th March 23:25

[siscar]

paul26982 said:

im alittle confused, lying tired in bed, right i thought we would be looking for a 85% mortgage as we paying the 15%' i and the Builder,

No, don't fall for that one, think about it for a minute. The builder owns the house, they aren't paying anything. What they are doing is giving you a 5% discount on the asking price.

So it's works out as £149,950 - 5% = £142,452.50 sale price. If you are paying 10% of £149,950 then that is a £127,457.50 mortgage which is 89.47% of the sale price.

[scotal]

siscar said:

paul26982 said:

im alittle confused, lying tired in bed, right i thought we would be looking for a 85% mortgage as we paying the 15%' i and the Builder,

No, don't fall for that one, think about it for a minute. The builder owns the house, they aren't paying anything. What they are doing is giving you a 5% discount on the asking price.

So it's works out as £149,950 - 5% = £142,452.50 sale price. If you are paying 10% of £149,950 then that is a £127,457.50 mortgage which is 89.47% of the sale price.

Yes & no. Its why gifted deposits are such a minefield with lenders.

The paperwork will show a £149,950 sale price, which makes the builder happy for land registery purposes. The mortgage paperwork will show a £149950 sale price which means an 85% mortgage is possible. (Provided you pick the right lender)
The money that hits the builders bank account is £142452.50.

[snotsnfarts]

[quote=scotalgood for you.
RP's idea of around 6% is about right.
You'd be pushed into a 2 or 3 year fixed rate, and like I said you'd have to pick a lender that was happy with the deposit being in part paid by the developer.


[/quote]

3.99% or 4.1 apr 5 years with HSBC available now

[scotal]

snotsnfarts said:

scotal said:

good for you.
RP's idea of around 6% is about right.
You'd be pushed into a 2 or 3 year fixed rate, and like I said you'd have to pick a lender that was happy with the deposit being in part paid by the developer.

3.99% or 4.1 apr 5 years with HSBC available now

Not at 85% LTV.

Edited by scotal on Saturday 28th March 11:38

[sleep envy]

at work al?

were you on the smash on thurs?

[scotal]

sleep envy said:

at work al?

were you on the smash on thurs?

I am in the office... paperwork chum, not drinking at the moment which is rather boring... but it does mean she's not angry with me for any reason

[sleep envy]

don't speak too soon, they flip at anything...