Mortgage Round Up

Welcome to our regular update on Mortgages.

Mortgages and Mortgage deals are constantly changing and so should you be interested in a obtaining a mortgage (be it for a First Time Buyer, Mover or re-mortgage), getting the right deal is vital. This has been marked over the last few weeks with fixed rates becoming very competitive.

Therefore, at Box Financial Planning, we are here to help ensure you get the right mortgage for you.

This month, we are looking at several mortgages, which are available to those borrowers wishing to obtain a mortgage to buy their first home.

Due to rates getting even more competitive, this Mortgage Update has been delayed slightly to ensure the new rates just coming out are shown.

The following information should not be taken as a recommendation and all mortgages are subject to status.

All schemes are based on a Property Value of £250,000 and a loan to value as indicated and highlight some of the better deals currently available.

Type Iniitial Interest Rate Fixed/Tracker/Discount Period Loan to Value Arrangement/Booking Fee Final Interest Rate
Discount  2.39% 2 Years 90% £199 5.19%
Fixed 2.69% 2 Years 90% £995 5.15%
Tracker 2.99% 2 Years 90% £499 3.99%
Discount 1.95% 2 Years 85% £699 5.69%
Fixed 2.29% 2 Years 85% £995 4.54%
Tracker 2.09% 2 Years 85% £999 3.99%

There has also been a couple of new 5 Year Fixed Rate Deals coming out, which have been mentioned in the mediia (these are generlaly for re-mortgages). A 'sub 1.99% Five Year Fixed Rate' is a very low and other lenders may follow suit:-

Type      Initial    Interest     Rate  Fixed Period   Loan to Value Arrangement/Booking Fee Final Interest Rate
Fixed 2.99% 5 Years 80% £999 3.94%
Fixed 2.89% 5 Years 80% £999 4.00%
Fixed 2.79% 5 Years 80% £845 5.79%
Fixed 1.99% 5 Years 60% £1,499 3.94%
Fixed 2.29% 5 Years 60% £995 4.74%
Fixed 2.44% 5 Years 60% £345 5.79%

Details correct as at 21/04/15

For the eagle eyed reader, they will notice the forth deal is the HSBC deal mentioned in the press and for those individuals with a larger mortgage, the relatively high arrangement fee may not be an issue, but for those with more modest mortgages, there are likely to be better deals out there.

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% of 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 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 different types of 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.