Mortgage issued

[MrJuice]

But it's a two year fix with virgin money at 1.54%. The rate quoted on their website is 1.40%. So my broker is going to check if this can be reduced. Apparently I applied before the rates were revised

But the main thing, actually, is that I want a five year fix. I did tell the broker this way back when but it appears they have applied for a two year. Does the broker get any less commission for a five year product than two year? Their fee for the two year product is £2221. And is it a mere formality for VM to switch the offer from 2y to 5y? Or will it be a major mission?

Thanks!

[guitarcarfanatic]

Presumably it's more than a quick amendment on their system to change you from 2 to 5...the rate would change by at least 1% which may affect affordability etc.

Surely you had the mortgage offer outlined and explained? Having just been through the process, our broker had to sit us down and talk it through. They also had to provide a full statement of projected payments for the next 30 years.

Did you not have any of this?

[Sarnie]

MrJuice said:

But it's a two year fix with virgin money at 1.54%. The rate quoted on their website is 1.40%. So my broker is going to check if this can be reduced. Apparently I applied before the rates were revised

But the main thing, actually, is that I want a five year fix. I did tell the broker this way back when but it appears they have applied for a two year. Does the broker get any less commission for a five year product than two year? Their fee for the two year product is £2221. And is it a mere formality for VM to switch the offer from 2y to 5y? Or will it be a major mission?

Thanks!

Tell the broker you want a five year rate...........will cause a delay of about a week for the offer to be re-issued.

But, you will only be able to choose from the five year fixed rates they currently have on offer, not what you probably looked at before they revised their rates.

For reference, the brokers commission is linked to the amount borrowed, not the rate you choose, the FCA would look pretty dimly on a lender offering different commission rates for different products......

[Sarnie]

guitarcarfanatic said:

Presumably it's more than a quick amendment on their system to change you from 2 to 5...the rate would change by at least 1% which may affect affordability etc.

The interest rate chosen does not affect affordability............

[guitarcarfanatic]

Sarnie said:

guitarcarfanatic said:

Presumably it's more than a quick amendment on their system to change you from 2 to 5...the rate would change by at least 1% which may affect affordability etc.

The interest rate chosen does not affect affordability............

Stand corrected

[MrJuice]

Thanks Sarnie

Hopefully it'll all be fine. At current five year rates I'll be paying an extra £140 a month but not having to remortgage for another three years is definitely worth the extra monthly payments.

[Sarnie]

MrJuice said:

Thanks Sarnie

Hopefully it'll all be fine. At current five year rates I'll be paying an extra £140 a month but not having to remortgage for another three years is definitely worth the extra monthly payments.

Yep, I find that a lot of buyers reject the five year option at the outset as they fixate purely on getting into the property with the lowest costs........but they don't think about remortgaging (and the potential fees involved) at month 24 & 48 (if they keep taking two year rates) which they wouldn't do on a five year rate....the trend with our clients at the moment seems to be two fixed at the outset and then five year fixed at the first remortgage..........that may change in the future if rates start to creep up........

[66Elan]

Sarnie said:

Tell the broker you want a five year rate...........will cause a delay of about a week for the offer to be re-issued.

But, you will only be able to choose from the five year fixed rates they currently have on offer, not what you probably looked at before they revised their rates.

For reference, the brokers commission is linked to the amount borrowed, not the rate you choose, the FCA would look pretty dimly on a lender offering different commission rates for different products......

Although Virgin Money do pay a higher procuration fee then most other lenders.

[Sarnie]

66Elan said:

Although Virgin Money do pay a higher procuration fee then most other lenders.

This is true but not what the OP asked............