What's a good deal these days?

#1
I'm not in the market for a mortgage myself, thank God, but what do you think is a good deal these days? It seems lenders are tightening up so much, simply securing an offer is an achievement.

Mind you, demand for mortgages has really plummeted, so perhaps there are deals to be had and haggled for after all.
 
#2
I tend to agree that almost anything will be an achievement...but banks will still lend to "good" customers. So, if your credit rating is not abysmal and you're not trying to borrow 34 times your salary, you'll still find banks and other lenders fairly receptive.

I've recently secured a pretty good re-mortgage with the Woolwich, but Cheltenham and Glouster were a very close second. I would avoid fixed rates at the moment...they are somewhat over-inflated to cover the background risk...
 
#3
I re-mortgaged about 3 months ago and am now with the Newcastle Building Society, whom I had never heard of until I started shopping around for a new mortgage. I wanted a mortgage which was relatively flexible, a good rate and no high charges (fair nuff? actually really hard to find but the Newcastle came out top when I was looking).

It is worth checking out the best buys in the weekend newspaper, e.g. Sunday Times, Mail on Sunday etc, as I didn't find I could get the whole picture looking just online with comparison sites. Once you've found a deal you think is interesting, check it out fully, with all the small print and put together a list of its pros, cons and charges and - critically, TRUE COST (over, say 10 years) - and you'll be able to do your own analysis and see what's best for you.

I did think about going to see an IFA or a mortgage broker but the once I telephoned first off took about two weeks to get back to me and by then I'd found the mortgage I wanted myself. This might be a good option to help with the search too. There is also What Mortgage magazine, but it seems more useful with info for people who are new to mortgages rather than if you've been through the mortgage maze already. The newspaper are most up to date with the latest deals.
 
#4
That's sensible advice. When I got my mortgage, I did go to an IFA, but not before I'd gathered all the information I could get by myself. The IFA confirmed that the mortgage deal I'd identified was the best one for me, and then dealt with all the paperwork for me. He didn't really tell me anything I hadn't known, but did take a bit of the hassle out of the application process, and it didn't cost me anything.
 
#6
IFAs are usually pretty good. Simply because the systems they have access to. You can of course do all the research yourself, but going through an IFA will pretty much cost the same.
I use Standard Life Bank, they're not the cheapest tbh.. but when I was renewing and had 10 banks trying to push me to take 5 times my salary, SL were the only one's who seemed have any kind of due diligence. They made me jump through some serious hoops to get a mortgage, not even a cheap one Given the recent crises, I'm glad I'm with them.
 
#7
First Direct Ofset Mortgage

I re-mortgaged twelve months ago. I took out an ofset mortgage on a ten year deal with First Direct.

If you have savings, an ofset mortgage allows you to ofset your savings against your mortgage, reducing the amount of interest you pay. My savings are pretty much none existence but I live in hope.

Ofset mortgages are flexible, allowing you to overpay, underpay and take payment holidays, as and when you need. You are only tied down to paying the monthly interest repayment on the loan.

I have made small overpayments on a monthly basis over the past twelve months and I hope to continue to make these small overpayments each month and pay off my mortgage early. If I hit financial difficulty, I have the peace of mind to know that I have made enough overpayments to allow me to take a few months payment break without consequence.

Tracy.
 
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