First time buyer mortgages
Discussion
I'll hopefully be in a position to look at a FTB mortgage in around 6-9 months (hopefully catching the bottom of the downturn). Out of interest, I've been looking at mortage deals available on £50-70k flats, with a 10% deposit and an anticipated salary of £20k-ish.
The only deals apparantely available are 6% fixed for 2-5 years. Considering the base rate is so low I was expecting a FTB mortgage rate to be along the same lines.
Will this be around the best I can expect?
The only deals apparantely available are 6% fixed for 2-5 years. Considering the base rate is so low I was expecting a FTB mortgage rate to be along the same lines.
Will this be around the best I can expect?
The turning point for property prices will be soon after availability of realistically priced money comes on to the market.
If you've got a deposit ready and waiting, there will be a 'golden quarter' in the next 1-2 years where mortgage availability and rates come right down, within a couple of months, prices will start to rise again.
Stands to reason I think, prices won't go up until mortgages become properly available again. Picking the exact time isn't a science, just a bit of luck.
If you've got a deposit ready and waiting, there will be a 'golden quarter' in the next 1-2 years where mortgage availability and rates come right down, within a couple of months, prices will start to rise again.
Stands to reason I think, prices won't go up until mortgages become properly available again. Picking the exact time isn't a science, just a bit of luck.
I'll be a FTB on about 24,000 with a 15% deposit hoping to make the move within the next year. Hopefully it will all work out.try to wait a bit longer and get another 10% deposit together (I know easier said than done) but under 80% will get you access to much better rates.
Properties are still dropping in price, so remember, if you have a 10% deposit, in a banks eyes you'll have sod all security in a few months so they are taking a high risk = high rate to you.
Properties are still dropping in price, so remember, if you have a 10% deposit, in a banks eyes you'll have sod all security in a few months so they are taking a high risk = high rate to you.
vinnie83 said:
try to wait a bit longer and get another 10% deposit together (I know easier said than done) but under 80% will get you access to much better rates.
Playing with the figures on moneysupermarket.com - the best rate with a 10% deposit is 6.29% 5 year fix, at 20% the best is 5.69% 2 year fix or 4.94% tracker.Still seems ridiculously high compared with some peoples existing mortgages at a discount on the base rate (although I suppose it was this ease of credit that partly caused the problems in the first place).
M3CD said:
LloydsTSB will have some strong FTB mortgages out in the summer - hang in there.
Do you work for LTSB or is this optimistic thinking? Edited by M3CD on Saturday 21st March 09:49
HSBC and Natwest keep banging on about how much they're going to provide in home loans in the next X months, the Times and Telegraph both carry the NW ad today. I'd be hugely surprised if much of this is directed towards FTB.
I'm in the same position as the OP albeit looking at houses with the other half...it's all pretty depressing out there atm.
Big Time Charlie said:
M3CD said:
LloydsTSB will have some strong FTB mortgages out in the summer - hang in there.
Do you work for LTSB or is this optimistic thinking? Edited by M3CD on Saturday 21st March 09:49
HSBC and Natwest keep banging on about how much they're going to provide in home loans in the next X months, the Times and Telegraph both carry the NW ad today. I'd be hugely surprised if much of this is directed towards FTB.
I'm in the same position as the OP albeit looking at houses with the other half...it's all pretty depressing out there atm.
...That said I also think it was annouced on the BBC website a couple of weeks ago when LTSB confirmed the arrangements behind the TAP scheme.
To get sub 4% you'll be looking at a 25% deposit last time I looked at couple of weeks back. but they are short term fixed or trackers. You have to look at what would happen if rates doubled as this could easily happen within the next five years. Best rate I can see at 85% is Newbury B/S at 4.9% for 3 years, but it's variable.
Yes that will be your best deal on 6%. You may well be able to get a subsequent deal for "existing" customer however giving you access to a much lower deal but having paid the redemption penalty. You then weigh the benefits of the redemption penalty against lower repayments or ability to pay extra extra and clear more mortgage.
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