FTB Rates and Broker advice please!

sal_strawberry

My partner and I are FTB have £16000 (10%) deposit for a house up to £160k. We have a mortgage Broker who has suggested 5 yr fixed with C&G at 6.59%.

I have seen cheaper 90% mortgages online, Post office Direct 5.85%, C&G online 6.29% and not online but in a bank Natwest can do 6.49%.

Questions:
1. My immediate impulse is to go with cheapest rate but what with current difficulty in getting mortgages approved is is better to go with a broker who can push things along, rather than applying ourselves online or applying direct with a bank?

We have no adverse credit, I earn 40k plus bonuses, my partner earns £25k. Our credit outgoings are minimal - appriox £250- each (such as on car finance and a credit card each). so i am left with over £1800 a month, him with £900.

Any advice is greatfully received. Our broker said today that peopl with only 10% deposits are being turned down a lot at the moment even if their finances are good!

Thanks for your time!

beecher

Are you sure the deals you've seen are for first time buyers, and not just for people remortgaging? Why don't you go back to your broker with the deals you've found and see what they say? They might notice something which makes you illegible for the mortgage, or have some other advice.

herbiesjp

Beecher is right about maybe not meeting the right criteria.

However I'd be worried by the fact that they offer C&G and what you have found is C&G, but two different rates.

Maybe you should get a second opinion from another broker

sal_strawberry

THey are definately for FTB, iyou can find them online. What I mean is that the C&G offer i found is an online only deal so this would not be open to brokers (well i presume)

Is it best to go with a broker rather than direct ourselve either applying online or through a bank? I heard that brokers work harder and push things through as they obviusly want their commission (our broker has no fees for us)>?

Thanks

herbiesjp

Some will be broker exclusives

But the broker should be telling you about them not the other way round.

Indeed, like myself, fees free brokers only get paid once the mortgage completes. So it is indeed in our best interest to make sure the mortgage completes as quickly as the client wants

payless

C&G back to dual pricing... the only way to get all the deals is to use a broker that will guarantee to search the whole market ( including direct deals ) .. you can try yourself but may find the broker exclusives from some lenders are not shown on the comparison sites ...

The fact that he has no fees , may sound good .. but not if this means he sells you a product that costs a lot more over the term ( although of course his input on criteria/ processing is also still of value)