the *perfect* remortgage lender
Axieros
Posts: 9 Forumite
I'm looking to remortgage soon to do some renovations and to pay off existing credit card debt. My credit history is impeccable; no missed payments or other funny stuff, and no dipping in overdraft. However, I made 2 credit card applications a few months ago, to shift older debt to 0% transfer cards. With existing level of debt I don't think I can borrow extra so I need to add the credit card debt to the new mortgage.
The new mortgage LTV would still be less than 60%. I don't want to stay with my current lender, as I could get lower rates elsewhere.
Are there any lenders who satisfy all the following?
* 5-yr fix rate less than 2%
* low set-up fees (less than £1000?) and free legals and valuation
* allows remortgage for debt consolidation
* takes into account annual bonus (~ 15% of base salary) and child support for affordability. I can show 3+ yrs regular bank history for both.
* allows regular monthly overpayments. I'm planning on overpaying a couple of hundreds every month, basically overpay by the amount that I'm now paying to my credit cards.
* follow on variable rate less than 4%. This is not as important as other criteria.
Happy to go through a broker to do the legwork, but it would help if I had some lender names in mind before I went and talked to them.
On that, how much should I expect to pay in broker fees? My situation isn't very complicated or tough, is it?
Thank you.
The new mortgage LTV would still be less than 60%. I don't want to stay with my current lender, as I could get lower rates elsewhere.
Are there any lenders who satisfy all the following?
* 5-yr fix rate less than 2%
* low set-up fees (less than £1000?) and free legals and valuation
* allows remortgage for debt consolidation
* takes into account annual bonus (~ 15% of base salary) and child support for affordability. I can show 3+ yrs regular bank history for both.
* allows regular monthly overpayments. I'm planning on overpaying a couple of hundreds every month, basically overpay by the amount that I'm now paying to my credit cards.
* follow on variable rate less than 4%. This is not as important as other criteria.
Happy to go through a broker to do the legwork, but it would help if I had some lender names in mind before I went and talked to them.
On that, how much should I expect to pay in broker fees? My situation isn't very complicated or tough, is it?
Thank you.
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Comments
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Happy to go through a broker to do the legwork, but it would help if I had some lender names in mind before I went and talked to them.
Why? Do you have some drug names in mind before you go to see the Doctor?
Leave the job to the Broker and don't try to do it for them.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I am using a broker right now, but wholeheartedly disagree with amnblog. Before using an intermediary for something you could do yourself, it is a good idea to have a sense for the kind of product you could get yourself with no middleman. If you think you meet the criteria for a 1.3% mortgage with bank X, and the middleman is recommending a 2% mortgage with bank Y, then do query it. Maybe you do not, in fact, meet the criteria of bank X, maybe there are other reasons why bank Y might be more suited to your needs. Or maybe bank Y simply pays the middleman a higher commission!
AFAIK doctors do not have any kind of comparable incentive in prescribing one drug over another. Yes, there may be cases of corruption or dodgy practices, but it's not comparable.0 -
@SouthLondon: thanks, that is exactly why I'm asking these questions.
I don't want to go directly to a lender as I don't want to be rejected for any reason, and then try to find another lender and so on. I prefer to use a broker on this one. However, not all brokers are created equal - I remember when shopping for a broker several years ago, even based on some telephone conversations you could tell some were (or seemed) more capable than others - but to be able to choose a good one I need to have some info - not only about lenders but also about the fees that I should expect to pay.0 -
My situation isn't very complicated or tough, is it?
Thank you.
no numbers so no one can tell.
salary
current mortgage deal.
debts
extra amount trying to borrow
There are clearly affordability/budget issues as you are using credit to fund things and need to carry over deal to new 0% deals.
If you need bonus and child support to meet criteria it may be tighter than you think
moving from 0% deals to paying interest may not be the smartest option especially if you have recently moved them to new cards, end up paying twice.0 -
@SouthLondon: thanks, that is exactly why I'm asking these questions.
I don't want to go directly to a lender as I don't want to be rejected for any reason, and then try to find another lender and so on. I prefer to use a broker on this one. However, not all brokers are created equal - I remember when shopping for a broker several years ago, even based on some telephone conversations you could tell some were (or seemed) more capable than others - but to be able to choose a good one I need to have some info - not only about lenders but also about the fees that I should expect to pay.
I actually agree with amnblog.
SouthLondonUser made a case for using a middle man vs no middle man but you've already implied you will be going to a broker(just want names before going to them) so amnblog's response sounds resonable to me.
I have never used a broker although the ones on here have helped me a great deal directly(via questions I posted) and indirectly (via other posts).
From what I understand the Mortgage brokers on here are not allowed to make specific lender recommendations so you will need to rely on individual mortgage customer experiences on specific lenders/products and they'd need to have similar background to provide some insight (including points posted by getmore4less).
Yes all brokers are not created equal but as you've already said you intend to use a broker, you can always have someone on here or in real life reccommend one that they've used with good results.
Alternatively you can use comparison websites to determine rates, legal/valuation costs, overpayments and follow on rates, extra borrowing. Then call the banks indiviadually to see if they take bonus/childcare payments etc
Then you can let us know how you get on as it could be useful for someone else in a similar situation.Working towards:
[STRIKE]*House Purchase (2015)[/STRIKE] [STRIKE] *Top-up pension (2016)[/STRIKE] [STRIKE] *Clear CC (2016) [/STRIKE]
*Mortgage Overpayment (50% LTV by Jan 2020) *Clear student Loan(by Jan 2020)[STRIKE]*Save for a Car (2017)![/STRIKE]
*Making the most of life!!!
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You have to source/research direct lenders/products yourself and the broker will do the same on lenders/products available via brokers.
No-one has suggested you ignore a sector of the market and amn certainly hasn't suggested that.
Frankly, I'd suggest you do it yourself. You don't need a broker. We're here to help people who need us.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
SouthLondonUser wrote: »Or maybe bank Y simply pays the middleman a higher commission!
I'm not a broker, but I've heard that the commission is small, and the differences between rates even smaller? I read that the days of a broker recommending one lender over another due to commission rates was long gone.
I may be wrong, but it's possible you may be out of date with your idea of how it works.Feb 2008, 20year lifetime tracker with "Sproggit and Sylvester"... 0.14% + base for 2 years, then 0.99% + base for life of mortgage...base was 5.5% in 2008...but not for long. Credit to my mortgage broker0 -
I've done a breakdown before, but typically we get between 0.32% and 0.35% of the loan.
The difference between one lender and another is certainly not enough to jeopardise your career for...I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
@getmore4less:
The debt is quite old, slowly reducing, and I moved it from a long-term 0% promo rate that was ending to 0% transfer cards with £0 transfer fees. I wouldn't add it to the mortgage, but if I don't do that, I believe I cannot borrow the extra needed for renovations. This debt coupled with some childcare costs reduce my affordability a bit. Childcare costs will reduce to nil next year.
Regarding affordability I put my numbers in several calculators online (Nationwide, Halifax, Barclays - I actually got an AIP from Barclays for the amount I need) and most of them say affordable IF I don't enter anything in the debt box - even at 20 years mortgage terms, which I prefer. I can always go to 25 years if needed, then overpay. Or, I can halt my own pension contribution for a couple of months prior to remortgaging; I'm contributing a hefty % of my salary at the moment, believe that's also reducing affordability.0 -
kingstreet wrote: »Frankly, I'd suggest you do it yourself. You don't need a broker. We're here to help people who need us.
I can't tell if you're being ironic, but for my peace of mind I want to use a broker. And who knows, once I start the remortgage process I might discover that I actually need a broker
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