I’ve reserved a 2 bed apartment at Baltic View in the Baltic Triangle area of Liverpool. Contracts have been exchanged.
I am now really concerned as build is complete any week now and I am still without a mortgage.
We were going through the mortgage process just as Covid hit. Originally this was with Virgin for 1.77%.
My broker told me Virgin pulled all of their products.
I was receiving a lot of pressure from my broker and PH/developer to apply for another product ASAP. The alternative provided was a Barclays product @2.45%, I waited a week to see if anything improved and then gave the go ahead.
Two weeks later I was told the product had been pulled and replaced but at 2.65%.
After rechecking the maths I gave them the go ahead that day to proceed. The application was accepted pending valuation, I’ve paid the £205 valuation fee to Barclays to now just be told Barclays don’t want to lend on this development as it’s investor lead.
Multiple other lenders are now not lending in this area due to oversupply, the ones that are, are offering some pretty dire choices.
I’ve now been offered a 5 year variable rate (currently at 2.85%) as the cheapest option. £100 per month higher than the original Virgin product.
Alternatively a 2 year fix at @ 3.35%
or a 2 year discounted variable @ 3.00% with a floor of 2.25%.
I honestly don’t know what to do now. I have never used variable rate products before and I don’t fancy fixing at 3.35% when I know people have got products in this development at less than half that rate.
Should I just suck it up and fix, learning the lesson that you shouldn’t let your broker leave you to the bottom of the pile?
Or should I take the 2 or 5 year variable? Does anyone have any experience of variable products?
As we have exchanged contracts, I’m not sure if or how I could pull out of this deal either.
Any advice would be greatly appreciated.