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Hi Will

If it helps I didn't take the builders mortgage but sourced my mortgage elsewhere I was offered euribor + .9% which at the time was 5.75% but as I had just signed and completed everything for the mortgage the rates went up and i think the average now is between 6% and 6.5% depending where you get it from.

My quote was about May this year.

And your next question is a real fun one, cures for insomniacs etc.............

Euribor (Euro Interbank Offered Rate) is like the UK equivalent LIBOR in that the rate is fixed daily (about 11am) by averaging out the rate at which Banks lend to each other (they use about 50 banks in Europe and drop the cheapest/dearest 15% from the calculation).

The average rates then become that days Euribor rates.

The rate depends on the fixture, usually 1month, 3months, 6months or 12months............ so it varies.

Add 1% to each of the below and you are there or thereabouts using 12mth Euribor (you'll see that CamBank's offer uses 6mth Euribor for the 1st fixture, then 12months Euribor thereafter - refers to fixtures as 'revisions', a fixture is like a short-term fixed rate)................ hope you're following me .

Basically if my 6 month fixture/revision expired today then i would move to 6.408% for 12months

 

period	08-26-2008	08-25-2008	08-22-2008
1 month	4.485%	4.484%	4.484%
3 months	4.965%	4.965%	4.964%
6 months	5.158%	5.161%	5.162%
12 months	5.308%	5.319%	5.321%

I can get a fixed rate of 6.3% for 3 years with Santander or 6.5% for 5 years, do these figures sound good?

Will I have to pay all the extra fees that you wouldn't have to with a builders mortgage.

Francis & Sarah.
Los Naranjos, Jardin 4.

We were adviced not to have a builders mortgage as we wanted to borrow more than 60%.
Regards
Mandy

Hi everyone,

I have been trying to find any relevant threads on mortgages and found this one which has confused the hell out of me with all the options, etc.....

Anyway, can anyone give me a very simple explaination on the various ways of obtaining a mortgage and the pros & cons, etc. Cajabank has e-mailed me offering their services and I am also looking at the other banks involved ie: Cam, Banco Popular and so on.

Is it cheaper to go with these as they are termed as builders mortgages or to look outside ie: Barclays, Halifax, etc.

I understand that going down one particular route allows the set up fees to be greatly reduced but being completly green on this particular area, any advise would be appreciated........in simple terms only please......!

Regards

Phil

 

Hi

You only have one bank that is your option for the builders mortgage, this will be the bank shown in your contract that you will probably have paid your stage payment to, if you didn’t do it though your solicitor and if you received any bank guarantees the bank named on that document. If you are not sure just call PW Completions they will tell you who this bank is in your case. 
As far as the other options are concerned its horses for courses look for a bank you are happy with or use a broker to do the looking for you, I presume you pay an additional fee for the latter but this may save in the deal thay get you?

 Phil