06/11/2024
LETS CHECK TODAY’S MORTGAGE RATES FOR A MARRIED COUPLE WITH 2 CHILDREN.
BACKGROUND STORY:
They are both employed and work in warehouse, the husband earns annually £30,000 and the wife £ 25,000 annually.
They are first time buyers
They want to buy a house worth of £250,000
They have a deposit of £12,500 which is equivalent to 5% of the mortgage value and wish to lend the other 95%
They want to repay the house in 30 years.
RESEARCH OUTCOMES from our 104 BANKS AND BUILDING SOCIETIES:
From affordability check we can see that they could maximum lend of £384,451 with Ecology Building Society.
FOR 2 YEARS FIXED MORTGAGE:
1rst choice on the system for the house they want appears to be for 25 months fixed mortgage, HSBC is the cheapest option
With Interest 5.65% monthly repayment of £1,369.75and total fees of £17.00
But if clients would not mind paying a fee of £140,00 then Furness Building society with interest of 5.34% for 24 months fixed rate and monthly payment of 1,323.60 would also be a very good choice.
If the clients want to pay a bigger fee upfront, they could have a lower interest rate and lower monthly payment but we need to check to actually see how much they would actually save with paying upfront more option.
FOR 5 YEARS FIXED MORTGAGE:
If clients would choose a fixed mortgage for 5 years with a small fee of £17 pounds then HSBC 5.16% Fixed 61Months £1,297.15 comes on the system as the cheapest option for 61 months Fixed rate.
Again if clients want to pay a bigger fee upfront the interest can be lower.
With 5 years fixed mortgages, you are signing an agreement that you will keep with your loan with this lender, and fixed interest.
If you would break the contract you would need to pay early repayment charges as mentioned on the offer agreement.
No matter what you would chose, you need to be comfortable with paying your monthly payments.
! Remember that your home could be repossessed by the bank if you do not keep up to make up your mortgage payments.
For more information, don’t hesitate to contact me directly, in order to check what would be the maximum mortgage you could have and how much that would cost.
