60% LTV - any point in using a mortgage broker?
Discussion
We have about £90k outstanding on a £160k house, both earning over £30k and only a few k on a credit card. Looking to repay over 10 years at around £900 a month. Is there any reason to go via a mortgage broker or would pretty much any mortgage provider accept us as a safe bet?
Current provider is offering 1.99% fixed for two years with no fees, and obviously no hassle of providing documentation/ID etc, but there might be some better deals on comparison sites with up-front fees.
Current provider is offering 1.99% fixed for two years with no fees, and obviously no hassle of providing documentation/ID etc, but there might be some better deals on comparison sites with up-front fees.
Twilkes said:
We have about £90k outstanding on a £160k house, both earning over £30k and only a few k on a credit card. Looking to repay over 10 years at around £900 a month. Is there any reason to go via a mortgage broker or would pretty much any mortgage provider accept us as a safe bet?
Current provider is offering 1.99% fixed for two years with no fees, and obviously no hassle of providing documentation/ID etc, but there might be some better deals on comparison sites with up-front fees.
I got a better rate using a broker, on 15% LTV, and having another house too.........Current provider is offering 1.99% fixed for two years with no fees, and obviously no hassle of providing documentation/ID etc, but there might be some better deals on comparison sites with up-front fees.
You know who to ask on here.
Twilkes said:
but there might be some better deals on comparison sites with up-front fees.
.......or deals that you can't see as they are exclusive to brokers as well as lenders that are broker only that you can't apply direct to therefore do not show up on any comparison site.The other side of the above is that there are lenders that are direct only and do not accept business from intermediaries, who may have rates lower than what's available to brokers.
Swings and roundabouts really.
Having had a quick look for a similar product to what you have referred to, I'd be discussing a 1.79% rate with no arrangement fee and free legals and valuation etc. So, it's cheaper but it may not be cheap enough for you to want to go through the mortgage process with a new lender.....but thats what the current lender hopes for when they price their retention products
Good luck!
irish boy said:
Coventry building society did me 1.59% on 59% ltv last month. Great company, they have no overpayment limit either.
That 1.59% rate isn't fixed though is it..... And Coventry BS do have overpayment limits, 10% of the balance each year.
Your product is a Flexx variable rate product which doesn't have overpayment limits but all their other products do
Quick responses, thanks. Will spreadsheet up some comparisons and see if it's worth the hassle of changing, and then maybe go to a broker.
Realistically, is any lender going to refuse us a mortgage in our situation i.e. going through application and then being declined?
And any reason not to go for a (lower percentage) tracker at the moment? Imagine the folks with trackers have done pretty well the last few years but you never know what's round the corner I guess...
Realistically, is any lender going to refuse us a mortgage in our situation i.e. going through application and then being declined?
And any reason not to go for a (lower percentage) tracker at the moment? Imagine the folks with trackers have done pretty well the last few years but you never know what's round the corner I guess...
Twilkes said:
Quick responses, thanks. Will spreadsheet up some comparisons and see if it's worth the hassle of changing, and then maybe go to a broker.
Realistically, is any lender going to refuse us a mortgage in our situation i.e. going through application and then being declined?
And any reason not to go for a (lower percentage) tracker at the moment? Imagine the folks with trackers have done pretty well the last few years but you never know what's round the corner I guess...
There are dozens and dozens of reasons why a lender could decline a seemingly straightforward application, you'd need to post all of your personal details for anyone to answer that question further.Realistically, is any lender going to refuse us a mortgage in our situation i.e. going through application and then being declined?
And any reason not to go for a (lower percentage) tracker at the moment? Imagine the folks with trackers have done pretty well the last few years but you never know what's round the corner I guess...
The boat has been missed by about five years for trackers to be a significant benefit currently. Lenders are now wise to the potential falling market and most tracker products will have floor rates attached to them.......when the gap between tracker and fixed rates was 1%+ it was worth the risk perhaps but nowadays, the disparity between the two is often 0.2% or less.....
Always use a mortgage broker, he is a filter between you and "computer says no" keyboard operator at the lending side.
1) They will get you a better deal
2) They will have acces to deals not open to Jo public
3) They know who has their loan book open at the moment, there are many lenders, still advertising, who in reality have all but closed their loan book for now.
4) Sarnie has to make a living
I'm not a broker, but sell houses for a living, a broker we can talk to always helps. For the avoidance of doubt we never take commision on broker referrals
1) They will get you a better deal
2) They will have acces to deals not open to Jo public
3) They know who has their loan book open at the moment, there are many lenders, still advertising, who in reality have all but closed their loan book for now.
4) Sarnie has to make a living
I'm not a broker, but sell houses for a living, a broker we can talk to always helps. For the avoidance of doubt we never take commision on broker referrals
Sarnie said:
Having had a quick look for a similar product to what you have referred to, I'd be discussing a 1.79% rate with no arrangement fee and free legals and valuation etc. So, it's cheaper but it may not be cheap enough for you to want to go through the mortgage process with a new lender.....
Based on those figures we'd save about £350 over two years, but that doesn't include any exit fees that the current lender might charge so could be a fair bit less. I have an appointment with current lender next week so will see what they come up with and then maybe take it to a broker.Thanks!
I'd be careful not to take any advice even from your currents as it could mean effectively a new application, easiest way is to ask for 'execution only' and choose your own new rate from what the lender has. Normally easier to do it online or by phone, takes a few minutes. Downside is that you don't get some of the protection offered by the relevant authorities if it matters.
Twilkes said:
And any reason not to go for a (lower percentage) tracker at the moment? Imagine the folks with trackers have done pretty well the last few years but you never know what's round the corner I guess...
I always find it a little bit odd when people are nervous to go onto a tracker mortgage because of the risk of interest rate rises, but are then happy to pay a bit more for one that's fixed...for all of two years. I take the view that if your budget can absorb rate rises as and when they occur then trackers are the way you're likely to pay the least over the lifetime of a typical 20-25 year mortgage. It seems to me that with a series of short-term fixes you're always paying extra for a guarantee, but are never protected from rate rises for long. YMMV etc, hope you find something that works for you OP.Roger Irrelevant said:
I always find it a little bit odd when people are nervous to go onto a tracker mortgage because of the risk of interest rate rises, but are then happy to pay a bit more for one that's fixed...for all of two years. I take the view that if your budget can absorb rate rises as and when they occur then trackers are the way you're likely to pay the least over the lifetime of a typical 20-25 year mortgage. It seems to me that with a series of short-term fixes you're always paying extra for a guarantee, but are never protected from rate rises for long. YMMV etc, hope you find something that works for you OP.
Because a fixed rate caps the maximum they can pay for a defined period of time, but a tracker doesn't.....Twilkes said:
Current provider is offering 1.99% fixed for two years with no fees
I wouldn't. No way are interest rates going to rise very far in just two years and at the end of that what happens next? If rates have risen significantly and are forecast to go on rising you could be completely screwed.I'd be looking for a much longer duration and wouldn't fix. But each to their own.
Ozzie Osmond said:
Essentially my view is that same as this,
Yeah, I agree, the only time ive fixed in the last 30 years I lost out. The rest of the time ive just ridden out SVR, which has been 2.5% for 8 years or so with current lender.Roger Irrelevant said:
It seems to me that with a series of short-term fixes you're always paying extra for a guarantee, but are never protected from rate rises for long.
In reality the apparent safety of fixing is an illusion.the fix is an illusion of safety paid for by those that need the security....a bit like any insurance really
If you really can forsee the future, fix and win against the odds the lender has bet on....well, you should choose a career as a professional investor and get rich quick, pay that mortgage off
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