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    • Axieros
    • By Axieros 8th Sep 17, 11:13 AM
    • 9Posts
    • 0Thanks
    Axieros
    the *perfect* remortgage lender
    • #1
    • 8th Sep 17, 11:13 AM
    the *perfect* remortgage lender 8th Sep 17 at 11:13 AM
    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.
Page 1
    • amnblog
    • By amnblog 8th Sep 17, 11:29 AM
    • 9,747 Posts
    • 3,763 Thanks
    amnblog
    • #2
    • 8th Sep 17, 11:29 AM
    • #2
    • 8th Sep 17, 11:29 AM

    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.
    Originally posted by Axieros
    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.
    • SouthLondonUser
    • By SouthLondonUser 8th Sep 17, 12:01 PM
    • 331 Posts
    • 49 Thanks
    SouthLondonUser
    • #3
    • 8th Sep 17, 12:01 PM
    • #3
    • 8th Sep 17, 12:01 PM
    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.
    • Axieros
    • By Axieros 8th Sep 17, 12:10 PM
    • 9 Posts
    • 0 Thanks
    Axieros
    • #4
    • 8th Sep 17, 12:10 PM
    • #4
    • 8th Sep 17, 12:10 PM
    @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.
    • getmore4less
    • By getmore4less 8th Sep 17, 12:52 PM
    • 29,787 Posts
    • 17,813 Thanks
    getmore4less
    • #5
    • 8th Sep 17, 12:52 PM
    • #5
    • 8th Sep 17, 12:52 PM
    My situation isn't very complicated or tough, is it?

    Thank you.
    Originally posted by Axieros
    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.
    • NinaSwiss
    • By NinaSwiss 8th Sep 17, 1:11 PM
    • 200 Posts
    • 105 Thanks
    NinaSwiss
    • #6
    • 8th Sep 17, 1:11 PM
    • #6
    • 8th Sep 17, 1:11 PM
    @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.
    Originally posted by Axieros


    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:
    *House Purchase (2015)
    *Top-up pension (2016) *Clear CC (2016)
    *Mortgage
    Overpayment (50% LTV of original purchase price by Jan 2020) *Clear student Loan(by Jan 2020)*Saving for a Car purchase(2017)!
    *2017 DIY projects *Making the most of life!!!
    • kingstreet
    • By kingstreet 8th Sep 17, 1:11 PM
    • 31,934 Posts
    • 17,067 Thanks
    kingstreet
    • #7
    • 8th Sep 17, 1:11 PM
    • #7
    • 8th Sep 17, 1:11 PM
    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.
    • fewcloudy
    • By fewcloudy 8th Sep 17, 1:16 PM
    • 157 Posts
    • 78 Thanks
    fewcloudy
    • #8
    • 8th Sep 17, 1:16 PM
    • #8
    • 8th Sep 17, 1:16 PM
    Or maybe bank Y simply pays the middleman a higher commission!
    Originally posted by SouthLondonUser
    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 tracker with Sprogget and Sylvester, 0.5% + base for 2 years, then 0.99% + base for life of mortgage. Kudos to my mortgage broker...
    • kingstreet
    • By kingstreet 8th Sep 17, 1:18 PM
    • 31,934 Posts
    • 17,067 Thanks
    kingstreet
    • #9
    • 8th Sep 17, 1:18 PM
    • #9
    • 8th Sep 17, 1:18 PM
    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.
    • Axieros
    • By Axieros 8th Sep 17, 1:25 PM
    • 9 Posts
    • 0 Thanks
    Axieros
    @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.
    • Axieros
    • By Axieros 8th Sep 17, 1:33 PM
    • 9 Posts
    • 0 Thanks
    Axieros
    Frankly, I'd suggest you do it yourself. You don't need a broker. We're here to help people who need us.
    Originally posted by kingstreet
    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
    • Axieros
    • By Axieros 8th Sep 17, 1:36 PM
    • 9 Posts
    • 0 Thanks
    Axieros
    So basically after several messages I didn't get any lender names and also have no idea how much I should expect to pay in broker fees, is it £300, £500, £1000, more? A range would help.

    Thanks though, it's an informative discussion nevertheless :-)
    • getmore4less
    • By getmore4less 8th Sep 17, 1:47 PM
    • 29,787 Posts
    • 17,813 Thanks
    getmore4less
    @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.
    Originally posted by Axieros
    waffle, no facts.
    • kingstreet
    • By kingstreet 8th Sep 17, 2:00 PM
    • 31,934 Posts
    • 17,067 Thanks
    kingstreet
    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
    Originally posted by Axieros
    No. It was realistic. You simply look at products then establish if the lender will accept your issues according to its criteria.

    It is fitting lender criteria which is where we excel. So that may be where you will benefit. It's impossible to say what you will be charged and when as there are various fee charging models. We charge £250 on application and that's it. Others charge more. Others charge on issue of offer, some on completion.

    Plenty think our job is to shave 0.1% off the rate from one lender to another but you can do that yourself.

    Either way, as suggested, research direct stuff yourself and let the broker do their job in establishing the best broker lender/product options from those who will lend what you need. We don't do 'execution only' and many brokers don't, so I wouldn't find a list of potential lenders particularly helpful as I can do that myself in two minutes on Mortgage Brain.
    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.
    • NinaSwiss
    • By NinaSwiss 8th Sep 17, 2:09 PM
    • 200 Posts
    • 105 Thanks
    NinaSwiss
    So basically after several messages I didn't get any lender names and also have no idea how much I should expect to pay in broker fees, is it £300, £500, £1000, more? A range would help.

    Thanks though, it's an informative discussion nevertheless :-)
    Originally posted by Axieros

    --Most who have already posted have been here a very long time helping a lot of people but doesn't guarantee that they will have an answer for your situation. They are not obliged to either.

    -- Its a weekday and most have a life outside of the forum so worth giving the post some time. If you get nothing further then it suggests that none of the people who've read your post are able to help. That said you have already received some advice even if you don't see it as such/or isn't what you want to hear.

    -- As for how much brokers cost, you'd need to get that info from the broker you go with as pricing structures can vary. Based on colleague experiences they can have different pricing structures depending on the complexity of the case. My ex and colleague used same broker for a London property of similar price (£320-350) . It cost my colleague £750(remortgage and btl purchase using equity from remortgage) but cost my ex over £1000(complicated remortgage) but this doesn't really help you... see where I'm going?
    Working towards:
    *House Purchase (2015)
    *Top-up pension (2016) *Clear CC (2016)
    *Mortgage
    Overpayment (50% LTV of original purchase price by Jan 2020) *Clear student Loan(by Jan 2020)*Saving for a Car purchase(2017)!
    *2017 DIY projects *Making the most of life!!!
    • Axieros
    • By Axieros 8th Sep 17, 2:20 PM
    • 9 Posts
    • 0 Thanks
    Axieros
    @getmore4less:

    42K salary, 6.3K annual bonus, 7.2K child support

    I'm trying to get £215K for the new mortgage; property value £400K+ based on recent sales

    monthly outgoings:
    £290 childcare costs (using the new tax free childcare program), one child. This will reduce to £0 by the end of this school year (secondary school age)
    £200 pension contributions; these are optional - I can temporarily stop them if needed
    £124 oyster card
    £102 council tax
    £76 service charge and ground rent

    £10.9K cc debt @ 0%, no other loans or debt. This will drop to less than £10K by the time I actually re-mortgage; I pay £400 at the moment towards the CC debt, more than min payments which are 2.25% of the balance.

    @kingstreet: thanks. Your post reassures me that it's worth going through a broker

    @NinaSwiss: thank you. Just an idea of the fees helps, I genuinely don't know what to expect, I haven't been in the market in a while...
    • SouthLondonUser
    • By SouthLondonUser 8th Sep 17, 2:20 PM
    • 331 Posts
    • 49 Thanks
    SouthLondonUser
    The thing is, going to a middleman with no knowledge whatsoever about what you might obtain going to the market directly exposes you to a greater risk that the middleman might recommend a product that is in his best interest, rather than yours. This could be any combination of him getting paid more and/or him having to do more work. This risk applies to any service in any sector, not just mortgages. The risk will of course be greater or lower depending on a number of factors, like the regulation in the sector, competition, how transparent the sector is, etc.

    I am using a broker right now because the inefficiencies of the mortgage lenders when I applied directly have caused me to lose my will to live. E.g. Nationwide’s online system crashed because it didn’t like my address; I should have gone to a branch or booked a telephone “consultation” – first slot available in 2 weeks. Thank you, but no thank you – my time is more precious than that. In my case, the broker doesn’t give me any specific advice (I don’t really need any), doesn’t give me access to deals I would not have been able to apply directly (my situation is very straightforward), but simply saves me time. Time is precious. More precious than money, in a way – I can borrow money but I cannot borrow time!

    As for specific names, have you done any research yourself? A quick search on price comparison websites will easily show multiple lenders with 5-year fixed rates < 2% for 60% LTV. Have a look at their criteria, and start from there.
    • Axieros
    • By Axieros 8th Sep 17, 2:30 PM
    • 9 Posts
    • 0 Thanks
    Axieros
    @SouthLondon: yes - I used the comparison on this site, also several calculators, even got an AIP. There are quite a few lender names with <2% rates for 5-yr fix but I don't know which ones are happy for me to 1. add the existing CC debt to the mortgage and also 2. which ones include bonus and child support in affordability calculations.
    • black_wings
    • By black_wings 8th Sep 17, 3:31 PM
    • 87 Posts
    • 31 Thanks
    black_wings
    @SouthLondon: yes - I used the comparison on this site, also several calculators, even got an AIP. There are quite a few lender names with <2% rates for 5-yr fix but I don't know which ones are happy for me to 1. add the existing CC debt to the mortgage and also 2. which ones include bonus and child support in affordability calculations.
    Originally posted by Axieros
    If you want to inform yourself before seeing a broker then you need to go on to a lenders website and read their lending criteria and you will then easily find what they say with regards to if they accept bonuses etc etc...
    Otherwise if you can't be bothered to do that then go straight to the broker.
    Last edited by black_wings; 08-09-2017 at 3:36 PM.
    • SouthLondonUser
    • By SouthLondonUser 8th Sep 17, 3:40 PM
    • 331 Posts
    • 49 Thanks
    SouthLondonUser
    PS as for bonuses, I'd expect lenders to always exercise some discretion. I don't think you'll ever find a lender that tells you: "OK, if you tick this box and that box, then we'll consider your bonus, 100%!" Some lenders will tell you they categorically do not consider bonuses, ever, but no lender will ever tell you a binding "yes" before underwriting.

    In these cases, a broker may be useful, because he'll have experience of which lenders are more or less likely to accept each kind of bonus. After all, a bonus should by its very nature be somewhat uncertain and not guaranteed.
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