Mortgage Round Up - Spring 2019
Mortgage Round Up Spring 2019
Welcome to our update on Mortgages.
With the Bank of England announcing on 7th February 2019 that Interest rates were unchanged, as had been widely expected, I felt it was time to re-start this round up.
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 month, we are looking at mortgages for First Time Buyers and with the Stamp Duty changes for First Time Buyers, the costs of buying your first home may have just been reduced. (If you’re able to buy a property over £500,000, there is no Stamp Duty reduction and properties up to £500,000, will reduce Stamp Duty by up to £5,000).
The following information should not be taken as a recommendation and all Mortgage Plans are subject to status.
All schemes are based on a Property Value of £300,000 and a loan to value as indicated and highlight some of the better deals currently available.
It may be possible to get a more competitive rate than is shown, as several regional Building Societies have particularly competitive Mortgage rates, but only lend in their area. If you are not buying in the area they are based in, you can’t obtain a mortgage from them.
Type | Initial Interest Rate | Fixed/Discount Period | Loan to Value | Arrangement/Booking Fee | Final Interest Rate |
Tracker | 1.53% | 2 Yrs | 85% | £999 | 4.24% |
Fixed | 1.63% | 2 Yrs | 85% | £999 | 4.24% |
Fixed | 2.06% | 5 Yrs | 85% | £999 | 4.24% |
Tracker | 1.99% | 2 Yrs | 90% | £995 | 4.99% |
Fixed | 1.84% | 2 Yrs | 90% | £999 | 4.24% |
Fixed | 2.29% | 5 Yrs | 90% | £1,499 | 4.99% |
Discount | 2.55% | 3 Yrs | 95% | £0 | 5.49% |
Fixed | 2.68% | 2 Yrs | 95% | £999 | 4.24% |
Details correct as at 15/02/2019 and mortgages are Subject to Status
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 savings become less effective.
In addition, some of the above schemes include additional features such as ‘Cash Back’ 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 £500 on completion plus 0.35% of the Mortgage amount 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 debt related product.
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, Home Purchase Plan and Equity Release review service.
Please call us on 0118 332 0022 or contact Paul Howard on
*Interest rates can rise as well as fall and the post Discount/Fixed Periods may be higher or lower than stated.
**The property may be repossessed if you do not keep up repayments on your mortgage or Home Purchase plan secured on it.