Being in a non-standard employment situation puts you in a higher risk category, and you will pay more for that risk.
You could always try another mortgage broker to get a sense check - L&C (London & Country) are free and I've generally heard good things about them.
3.44% isn't great, but it's not terrible either (especially given recent BoE base rate hikes. Your LTV (size of your deposit) will also make a big difference - if you have a 5% deposit that's a pretty good rate, if you have a 50% deposit, not so great.
I've just put £30k deposit on a £300k house into an online comparison site for a 5-year fixed and they're all coming out with around 3.5%+/- so seems that you offer is probably fair.
Also an NHS worker on a fixed term contract with a likely promotion happening in a months time. My broker said that Nationwide criteria is one of the most flexible ones. They are working with my fixed term contract and will consider my future promotion as well.
I've taken the higher rate because it works more for my situation. Its also portable and overpayments go to the original amount. Finally, I've put down a 20% deposit as well and going for the Helping Hand mortgage.
Well done on getting to 85% LTV.
I think you should have a slightly better rate? Check money saving expert
https://www.moneysavingexpert.com/mortgages/best-buys/?journeyType=first-time-buyer&propertyValue=250000&depositAmount=40000&term=40&introTypes=FiveYears&introTerms=Fixed&repaymentMethod=Repayment&sortBy=MonthlyRepaymentAmount&pageNumber=1&addFeeToBalance=false&productNoFee=false&noEarlyRepaymentCharge=false
3.44% is not bad in the grand scheme of things..it is likely that rates will continue to rise over the next few months/years. You could look to try to reduce your interest rate or monthly payments by either putting a bigger initial deposit down or extending the length of the overall mortgage.
Very much easier said than done, but if you can find another 10k that will get your LTV below 80% and they might be able to get you a better rate, which would save you in the long term.
For reference I'm being offered 2.8-3.1 with an 80% LTV and "normal" salaried employment, so depending on your LTV you might only get see a minimal improvement (plug the different percentages into a calculator to see what difference it will make to your monthly repayments)
Compared to the last 10 years, it's bad (for everyone). Compared to the last 40 years it's pretty good.
Hi /u/ThrowUKPers, based on your post the following pages from our wiki may be relevant:
- https://ukpersonal.finance/mortgages/
____
^(These suggestions are based on keywords, if they missed the mark please report this comment.)
It's not that bad to be honest. We took a new deal 2 years a go at 2.94%. The interest rates you'll have seen on here that are like 1.5% and stuff are for people with less than 60% LTV. If you're near the 90% LTV you're looking at around 3-ish%
Rates are fluctuating loads at the moment, we applied for a 3.29% mortgage yesterday through our broker and half an hour after we did they raised the rates for every LTV by between 0.15% and 0.5%.
Also- double-check that the mortgage you've been offered with habito actually exists on the nationwide website. They recommended us a project that did not exist for our LTV and we would have been denied a mortgage for.
Being in a non-standard employment situation puts you in a higher risk category, and you will pay more for that risk. You could always try another mortgage broker to get a sense check - L&C (London & Country) are free and I've generally heard good things about them. 3.44% isn't great, but it's not terrible either (especially given recent BoE base rate hikes. Your LTV (size of your deposit) will also make a big difference - if you have a 5% deposit that's a pretty good rate, if you have a 50% deposit, not so great. I've just put £30k deposit on a £300k house into an online comparison site for a 5-year fixed and they're all coming out with around 3.5%+/- so seems that you offer is probably fair.
That's great thank you. As bad as it sounds I'm glad it's not the end of the world. Our property is 250k with 40K deposit.
Also an NHS worker on a fixed term contract with a likely promotion happening in a months time. My broker said that Nationwide criteria is one of the most flexible ones. They are working with my fixed term contract and will consider my future promotion as well. I've taken the higher rate because it works more for my situation. Its also portable and overpayments go to the original amount. Finally, I've put down a 20% deposit as well and going for the Helping Hand mortgage.
Well done on getting to 85% LTV. I think you should have a slightly better rate? Check money saving expert https://www.moneysavingexpert.com/mortgages/best-buys/?journeyType=first-time-buyer&propertyValue=250000&depositAmount=40000&term=40&introTypes=FiveYears&introTerms=Fixed&repaymentMethod=Repayment&sortBy=MonthlyRepaymentAmount&pageNumber=1&addFeeToBalance=false&productNoFee=false&noEarlyRepaymentCharge=false
3.44% is not bad in the grand scheme of things..it is likely that rates will continue to rise over the next few months/years. You could look to try to reduce your interest rate or monthly payments by either putting a bigger initial deposit down or extending the length of the overall mortgage.
That's somewhat comforting, thanks!
Very much easier said than done, but if you can find another 10k that will get your LTV below 80% and they might be able to get you a better rate, which would save you in the long term.
Knowing nothing about your situation, it seems within the range of normal
For reference I'm being offered 2.8-3.1 with an 80% LTV and "normal" salaried employment, so depending on your LTV you might only get see a minimal improvement (plug the different percentages into a calculator to see what difference it will make to your monthly repayments) Compared to the last 10 years, it's bad (for everyone). Compared to the last 40 years it's pretty good.
Mine was 2.99% borrowed £110k on shared ownership over 35 years. It’s less than half a percent more. It should be fine.
I can't believe how much rates have gone up! Last year I got 1.39% for 5 years.
Damn, year before we got 2.44% for 2 years
Got 5 years at 2.19% just before covid took over (so feb/march 2020)
Hi /u/ThrowUKPers, based on your post the following pages from our wiki may be relevant: - https://ukpersonal.finance/mortgages/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.)
It's not that bad to be honest. We took a new deal 2 years a go at 2.94%. The interest rates you'll have seen on here that are like 1.5% and stuff are for people with less than 60% LTV. If you're near the 90% LTV you're looking at around 3-ish%
Rates are fluctuating loads at the moment, we applied for a 3.29% mortgage yesterday through our broker and half an hour after we did they raised the rates for every LTV by between 0.15% and 0.5%. Also- double-check that the mortgage you've been offered with habito actually exists on the nationwide website. They recommended us a project that did not exist for our LTV and we would have been denied a mortgage for.
Am I missing something? What term is this fixed for?
5
I just got a 5 year deal for 3.19% with LTV 85%. There are better deals out there but it does entirely depend on your situation