Which lender is offering best mortgage rate?

L

Lillywhite

Guest
Hi,
Just wondering which bank or lender is best for a young couple to go and get a mortgage with. Should we be looking for a discounted rate or a fixed rate or a tracker rate?? Should we just be making sure we get the best rate now and not worry about future variable rates. My boyfriend currently owns the house with his friend so im buying his friend out. Im a first time buyer. The house is worth about 300k.
Thank you
 
Have you looked at the Best Buys?

There is little to be gained in guessing whether interest rates will rise or not. Fixed rates carry quite a substantial premium, so unless you think rates are going to rocket, then a decent tracker would be best.

When approaching the banks, push them for free legal fees. Most of them will give you this, if you threaten that you would go through a broker otherwise.

Whatever you do, don't go through a broker. They will just slow the whole thing down for you.
 
"Whatever you do, don't go through a broker. They will just slow the whole thing down for you"

Seems to me like a wild statement to make. You have obvisiouly had a bad encounter with one broker. It is not fair to generalise here. There are professional brokers and unprofessional brokers out there, no doubt just as there are professional & unprofessional solicitors, mechanics, auctioneers, etc.

I have dealt with many satisfied customers in the past who had been previously declined wehn they applied directly to a bank.

To refer to the original poster, your rate typically should be comfortable for you to pay and also relevant to your ideal repayment method i.e. do not choose a fixed rate option if you are looking to overpay your mortgage account on a regular basis to reduce the total level of interest you will repay.

Consider service an important aspect of your mortgage...there is nothing more frustrating than a "last minute panic" with a loan cheque because somebody ahsnt done their job properly.

Also, I'd consider how flexible each bank are with their lending criteria looking into the future.

E.g there is little or no point taking the maximum mortgage with Lender A (say 250k) when Lender B will approve you for (say 300k). This may not mean a lot now, but you may be looking at a top up facility or further property investment in say 2/3 years time, in which case, Lender B, although their rates slightly less attractive, would be the better option.

Didn't mean to rant :)

I hope this makes sense. Good luck with whatever you decide to do.

Sean
 
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