Mortgage Round Up 15
Mortgage Round Up 15
Welcome to our regular update on Mortgages.
Mortgages and Schemes are constantly changing and so should you be interested in a obtaining a mortgage or Home Purchase Plan (be it for a First Time Buyer, Mover or re-mortgage), getting the right deal is vital.
Here at Box Financial Planning, we are here to help ensure you get the right Mortgage, Home Purchase Plan or Equity Release for you.
This week, we are looking at several different mortgages available for the home owner wanting to move.
The following information should not be taken as a recommendation and all Mortgages/Home Purchase Plans are subject to status.
All the schmes are based on a Property Value of £350,000 and a loan to value as indicated and highlight some of the better deals currently available!
| Type | Initial Interest Rate | Fixed/Discount Period | Loan to Value | Arrangement/Booking Fee | Final Interest Rate |
| Tracker | 1.39% | 2 Years | 60% | £999 | 2.49% |
| Fixed | 1.49% | 2 Years | 60% | £995 | 4.99% |
| Fixed | 2.29% | 5 Years | 60% | £995 | 4.99% |
| Discount | 1.50% | 3 Years | 60% | £0 | 4.99% |
| Tracker | 1.49% | 2 Years | 75% | £999 | 3.99% |
| Fixed | 1.55% | 2 Years | 75% | £1,094 | 4.99% |
| Tracker | 2.39% | - | 75% | £995 | 2.39% |
| Discount | 3.29% | 2 Years | 95% | £0 | 5.29% |
| Fixed | 3.99% | 2 Years | 95% | £0 | 4.74% |
Details correct as at 05/12/15
As a reminder, the difference between paying a higher ‘arrangement fee’ and receiving a lower interest rate can be significant and is very much dependent on the loan amount – as below around £200,000 the lower interest rate saving being less effective.
In addition, some of the above schemes include additional features such as ‘Cash Back’ on completion or free valuations.
Lenders are unsure when Interest Rates will change and therefore deals are often tweaked when they are either too competitive (and their rates go up) or not competitive enough (and the rates go down) – therefore deals are often more short term in availability.
Some of the above schemes include additional features such as ‘Cash Back’ (two of the above deals do include this) on completion or free valuations.
In addition to the Arrangement/Booking Fees, there will be other costs such a Legal and Valuation costs as well as any agreed advice fees (our normal fee is 0.35% the Mortgage Value although we do have some special deals on at the moment which may reduce this and some lenders may pay a procuration fee, which will cover some or generally all of this fee) which will therefore also need to be paid.
As a reminder, the initial rate is not necessarily the most important rate and therefore all three aspects (Setting up Costs, Interest Rate and Final Rate) and your personal situation needs to be taken into account, to ensure you end up with the most appropriate mortgage.
Our initial meeting/discussions are without charge or obligation, so please contact us should you wish to avail yourself of our whole of market, mortgage review service.
Next time, we will be looking at Lifetime Mortgages and Home Purchase Arrangements.
Interest rates can rise as well as fall and the post Discount/Fixed Periods may be higher or lower than stated.
Your home may be repossessed if you do not keep up repayments on your mortgage.