Woolwich turned us down, any advice?

boo80

We're buying a house for 187k, we have a 10k deposit and my parents are very kindly investing 80k in the house (I know how lucky we are!), so we need a mortgage for 97k, which is the figure we were told by the IFA we could get. The IFA recommended a mortgage with the Abbey, but I had a look around and saw one with the Woolwich (the IFA only gets a third of the commission on this one) that works out at £50 less per month which would make a huge difference to us, and over the 5 years would save us £3000. Anyway, the IFA called today and said that the Woolwich have come back and said they will only lend us 93k so we have to go with the Abbey one. Very annoying as that 4k shortfall will cost us 3k in extra interest. Does anyone have any advice on anything we can do to get the Woolwich to lend the extra money? Sorry, has turned into a bit of an essay but I needed a rant!!

ceminem

Why go through an IFA seems you are clued up by getting quotes and such, save yourself money by applying direct don't trust the IFAs they just want to make the most they don't give a toss about what you eventually end up paying.

boo80

I know, the estate agent kind of railroaded us into using their IFA, which is why we are using him but doing our own research too. I don't know if we can apply to Woolwich direct and get a different outcome? Also, wouldn't it look bad on our credit report if we applyed for too many things? Feel really down about it all now

yelf

ceminem wrote: »

don't trust the IFAs they just want to make the most they don't give a toss about what you eventually end up paying.

Oh dear - you obviously have no clue. IFAs have to keep records of all advice given, and it has to be shown that the advcie was the best for the client. There compliance dept would check this also. Any IFA only advising for their best interests are risking their career, and as such such a broad stupid remark is clearly coming from a clueless person.

IFAs genrally expand their business by recommendations - fleecing all their customers would end their businesses. :mad:

boo80: yes you can go direct to Woolwich - personally i would far rather use Abbey than Woolwich god forsaken funds booking system. Plus an IFA will do the leg work.

boo80

yelf wrote: »

boo80: yes you can go direct to Woolwich - personally i would far rather use Abbey than Woolwich god forsaken funds booking system. Plus an IFA will do the leg work.

Even though it will cost an extra 3k? I'm really new to this and know NOTHING about mortgages!

Bob_the_Saver

Bargepole a don't shAbbey touch with

unite79

Why will the IFA get a third of the commision from Abbey to Woolwich!

Why will it cost you an extra £3k - is this over the whole term!

unite79

Are your IFA/woolwich/Abbey aware yout parents are investing in the house - If so they wont lend = They will want a letter confirming a gift with no interest

boo80

unite79 wrote: »

Why will the IFA get a third of the commision from Abbey to Woolwich!

The IFA gave us a print out with the details for each mortgage. Abbey is one of their 'preferred lenders' and the IFA would of got £600ish from that deal, they don't have any deals with the Woolwich and they only would of got £200ish commission.

unite79 wrote: »

Why will it cost you an extra £3k - is this over the whole term!

Yes, it's a 5 year fixed, the mortgage is an extra £50 per month, so I make that £3k over the 5 years.

unite79

Abbey have a nice 4 year deal, in my opinion better value than the 5 year, that one has been raised a lot over the last week!

boo80

unite79 wrote: »

Are your IFA/woolwich/Abbey aware yout parents are investing in the house - If so they wont lend = They will want a letter confirming a gift with no interest

The IFA knows what is going on, no idea if the building societies do. My parents are purely doing it to help us, but when/if we sell the house they will get their % of the house back. Don't really see what difference it makes to them!