Home owner

[Dazza1]

Just got a letter from my council to say I've been accepted to have the right to buy our maisonette flat. We get 52% off so were lookin at buyin it for £85,000. I went to my bank (HSBC) and I can get I fixed 5 year no fee mortgage for £419 a month witch is £19 more a month that I pay now. Can't wait r no longer be classed as council house scum :lol:

 

[Matt]

That's awesome that you can pay towards owning it for such a small amount extra. Nice one

 

[Dazza1]

I'm borrowing some money off my sister in law to so a loft converstion

 

[singlespeed]

Sweet.

Check if theres any tie in clause after the fixed period finishes. If the rate goes up a lot in the 5 years and you can't switch afterwards, it could be expensive

 

[lgonzalez]

Awesome nice one buddy

 

[Rob_McLav]

As single speed says make sure u understand what happens after the 5 years is up

 

[Dazza1]

As single speed says make sure u understand what happens after the 5 years is up

He said after the 5 years I can put it on another fixed rate for 5 years

 

[singlespeed]

this is probably the other way round to todays situation, but way back in 93 when the mortgage rate was high and going up, a work coleague took out a fixed rate for at what appeared to be a reasonable rate.

Cue two years later and the average rate had dropped massively and he was tied in with a very expensive get out clause. It was quicky going to cost him thousands, or pay to get free... Which he reluctantly did

 

[Dazza1]

2.3% the rate is Neil for 5 years on a 25yr mortgage

 

[singlespeed]

2.3% the rate is Neil for 5 years on a 25yr mortgage

That was back about 90-91 and I'm sure Dave was fixed and tied in at around 12% which was competitive and looking good when he took it out as rates were on the up and peaked about 15% not long afterwards. Cue 93-94 and he was a good 4-5% over the current offers which was the best part of £500 per month extra compared to a new deal which would have been avaliable, or, stump up a large wedge to escape.

Obviously todays situation is quite the opposite which is a prety good place to be for you, but still very worthwhile bearing in-mind.

 

[Dazza1]

I haven't signed anything yet so are ask when I go to the bank

 

[Araf]

2.3% the rate is Neil for 5 years on a 25yr mortgage

I think that's a good rate. If you can afford to pay £450, ask them what the repayment terms would go down to. I think you'll be surprised.

You've also reminded me that it's nearly time for me to review mine.

 

[singlespeed]

I haven't signed anything yet so are ask when I go to the bank

Thats OK. It just made me very wary when taking out my mortgage



Is it this one for current account holders?
https://mortgages.hsbc.co.uk/produc...5-year-fixed-current-account-special-fee-free

Up to 20% overpayment of your standard monthly payment without charge
Overpayments of up to 20% can be made to the standard monthly repayment (by increasing the standard direct debit) without incurring an early repayment charge. An Early Repayment Charge applies if you increase your standard monthly payment by more than 20% or repay, by any other method, the whole or any part of the mortgage, over and above your standard monthly payment during a fixed or discount rate period. This does not apply to tracker rates or the HSBC variable rate, where unlimited overpayments are allowed without incurring an early repayment charge.

Yes

I know its borring and sucks, but if you can overpay something early on in the life of the mortgage, you can significantly reduce the term of the mortgage or later reduce the monthly payments... I managed to kick the arse out of mine early on and have had a tiny mortgage for a while.

Fees and charges
Early repayment charges

Are charged to customers on a fixed or discounted rate, who remortgage to another lender, or overpay more than 20% of their standard monthly repayment during a fixed or discount rate period.

Yes

Find out what they are, just incase you wish to move


Get an independant adviser to recomend something, as if its your bank, they may be slightly biased. Although I'm not saying that is a bad one as I haven't looked for a while

 

[Dazza1]

I've got a HSBC advanced account

 

[benmc]

Sorry to hijack thread here I have a good credit rating and a good amount saved towards a house I have had constant income from age of 16 with good pay how much roughly percentage wise would I be looking for morgage on say around 100,000 pound ( just percentage interest) ?? Cheers people !

 

[singlespeed]

theres loads of online calculators that let you put in different amounts for term, deposit, percentage etc

 

[benmc]

I've found them but I want one which gives a rough percentage (if the calc comment wa towards me)

 

[singlespeed]

I've found them but I want one which gives a rough percentage (if the calc comment wa towards me)

Yes Ben, it was for you... It varies a lot, depending on the LTV (Loan To Value), term of the mortgage, fixed (term if any), the amount of fees you pay upfront, being a first time buyer, BOE base rate, US Libor rate, your avaliable income, provider...... at the moment, anywhere between 3 and 6%

 

[JMR]

My last lender stopped their uk mortgage business and my mortgage got moved to another provider who just did standard variable mortgages. (Their rate was 4.99%!)

This didnt suit me and I shopped around to get the best deal fixed for 5 years with no fees up front and no fees after.

That came in at 3.79% which last summer was decent.

2.3% sounds great Dazza. As above, check tie in after the 5 yrs rate has ended.
Sounds good news though that mate.

 

[Dazza1]

Will do JMR

When I worked it out I would save myself £400 with a non fee 1 then takin out a fee mortgage