Hi All,
Have used this website in the past to learn of how this mortgage process works - some great minds here :beer:
I am currently looking to purchase my first property and have found the following:
1)3 bed semi-detached with schools nearby.
2) It's in a desirable area where property is sought after
3) It needs updating (the works - boiler and all) and have submitted an offer I felt affordable and this looks to be accepted.
If this was immaculate then there is no way I could afford to purchase as a FTB.
Now I am looking into the following:
- Taking a mortgage out with Santander/HSBC
These are currently offering 90% mortgages with different interest rates:
HSBC
2 year fixed @ 4.19% reverts to 3.84% after the term
Arrangement fee - £599
Santander:
2 year fixed @ 4.49% reverts to 4.64% after the term
Arrangement fee - £495
Term - 25/30 years.
Deposit: 10%
Now HSBC looks great, however am worried about their really strict and complained about credit checks. I have no defaults/CCJ, however found it difficult to take out a credit card last year, when I did, the company increased the credit limit as my payments were made on time.
So I am thinking:
Santander means higher monthly payments - having an extra interest rate but at least there is a better chance of securing a mortgage
I do not plan to live here for long - probably 3/4 years - so if I extend my mortage term from 25 to 30 years. This would lower my monthly payments by £60 each month for 2 years and then I could find a better rate on the market - or is this thought just silly?
As when I intend to sell the property I am pretty sure it will sell more than I anticipate to buy and spend on it.
Would the better bet be to just go for Santander with a slightly longer term?
Thanks!
:j
Have used this website in the past to learn of how this mortgage process works - some great minds here :beer:
I am currently looking to purchase my first property and have found the following:
1)3 bed semi-detached with schools nearby.
2) It's in a desirable area where property is sought after
3) It needs updating (the works - boiler and all) and have submitted an offer I felt affordable and this looks to be accepted.
If this was immaculate then there is no way I could afford to purchase as a FTB.
Now I am looking into the following:
- Taking a mortgage out with Santander/HSBC
These are currently offering 90% mortgages with different interest rates:
HSBC
2 year fixed @ 4.19% reverts to 3.84% after the term
Arrangement fee - £599
Santander:
2 year fixed @ 4.49% reverts to 4.64% after the term
Arrangement fee - £495
Term - 25/30 years.
Deposit: 10%
Now HSBC looks great, however am worried about their really strict and complained about credit checks. I have no defaults/CCJ, however found it difficult to take out a credit card last year, when I did, the company increased the credit limit as my payments were made on time.
So I am thinking:
Santander means higher monthly payments - having an extra interest rate but at least there is a better chance of securing a mortgage
I do not plan to live here for long - probably 3/4 years - so if I extend my mortage term from 25 to 30 years. This would lower my monthly payments by £60 each month for 2 years and then I could find a better rate on the market - or is this thought just silly?
As when I intend to sell the property I am pretty sure it will sell more than I anticipate to buy and spend on it.
Would the better bet be to just go for Santander with a slightly longer term?
Thanks!
:j