Broker or direct? And Repossession Rate????

Pauper_Princess

Hi all,

Just two quick questions. Please don't shoot me, I know !!!!!! all about mortgages despite having had one for fourteen years.

First question:

Our fixed rate ran out last month and due to one thing and another we haven't yet taken out a new deal. We're on the Leeds Building Society standard rate of (I think) 5.49%.

In the past we've always used a broker but the girl we used has pulled out of the market now and no-one else seems keen to recommend anyone. Should we look at applying direct, using Money Supermarket for instance? Or is a broker still worthwhile? (Any recommendations around the Leeds/Huddersfield area greatly accepted!)

I think our situation is quite straightforward, both fulltime employment, no adverse credit, mortgage not excessive, one credit card paid off in full each month, one car loan with about 18 months left.


Second question:

A guy at work has just been declined for a remortgage due to LTV too high because they valued the house at "Repossession Rate". What is this? He put in a value of £100,000 for his house and the surveyor came back with £90,000. How can I work this out for my house? No-one moves around here, repossessed or otherwise, and nothing has sold since 2007. According to that Nationwide "house price calculator" ours is now "worth" £136,700 which gives us an LTV of about 65% but this isn't the "Repossession Rate" is it.

Many thanks for any help, I'm sure this/these have been asked many times before so I apologise. Bit short of time to read all of Martin's article about brokers but he seems to be in favour?

PP

dimbo61

Thats a high SVR and with a perfect credit history and good LTV you should be able to get a better deal.
The question is what to go for ?
Long term security 5 year fix at 3.99% with COOP ? Fee £999 LTV 75%
You dont give your mortgage balance or any Early repayment charges ( might be none as out of fix)
Can you check your credit score with the 3 credit agencies and call a couple of " whole of market mortgage brokers" this is a big decision but if you plan on staying in your current property the 5 year fix is very good GOOD LUCK

Pauper_Princess

Thanks dimbo Just off to look at the Co-op now.

Sorry forgot to mention, current mortgage outstanding is £82,503 (prob a bit less, this was the annual statement at 31 Dec 2009). No tie-in now. Currently paying £572 a month. 20 years left but not too concerned about extending a bit further if need be - both 35. The rate is 5.49%, just checked.

Last house sold in our postcode according to house prices.co.uk was a 2 bed end terrace on the main road which went for £124,000 in March this year - we're a 3 bed semi with drive and garage.

Is it worth applying direct?

Not checked experian etc for a few years - need to check up on how to do this as I can't remember!

Thanks

PP

kaych

you can use a broker and also look yourself.

we did that, basically asked the broker to find the best deal for us, but we know that HSBC and some others you have to go direct. so we just compare their deals with the best deal we got from the broker... saved some time. at the end we went with HSBC. told the broker and he admitted that he wouldn't be able to beat the HSBC one.

the broker is located in Durham but we are down in the southeast (Watford, Herts), have only dealt with him through the phone and email. very helpful and pretty much updated us everyday and everytime we have some new numbers, we would produce a new key fact for us almost immediately. can give you his details if you want.

Pauper_Princess

Thanks kaych - was it hard work doing it yourself? I didn't realise you could use a broker out of your area (yes, I am that dumb ) so yes if you could pm me his details that would be great thanks!

dimbo - that Co op deal looks very popular on here so I might ring them tomorrow if it's not already gone. Doesnn't save us that much initially but obvsiouly when rates go up we (hopefully) will be better off. Thanks.

PP

kaych

Pauper_Princess wrote: »

Thanks kaych - was it hard work doing it yourself? I didn't realise you could use a broker out of your area (yes, I am that dumb ) so yes if you could pm me his details that would be great thanks!

dimbo - that Co op deal looks very popular on here so I might ring them tomorrow if it's not already gone. Doesnn't save us that much initially but obvsiouly when rates go up we (hopefully) will be better off. Thanks.

PP

PM'ed you his details.
It was all right, basically just went on the website of the banks and typed in the numbers! didn't think it was hard work, just a little time consuming. but really helps to have a list of banks available and their rates (provided by the broker) and then check the high street banks that are not on the list :rotfl: also i think the broker can sometimes get you a better deal than the ones you find on the bank's website.

anyway GOOD LUCK with whatever you decide to go for :j

Pauper_Princess

Kay - thanks for details. Will be using him if first choice doesn't come through :-)

dimbo - we've just applied for the Co-op 5 year fixed. Hopefully been accepted - thank you!!!!!!!!

sebtomato

dimbo61 wrote: »

Long term security 5 year fix at 3.99% with COOP ? Fee £999 LTV 75%
You dont give your mortgage balance or any Early repayment charges ( might be none as out of fix)

Can't see that mortgage on their website

dimbo61

Hi you are right I have just checked the coop website and the 5 year fix is 4.79% but its has no fee so I dont know if they have pulled the 3.99% deal ( it was the best on the market)
Once they have used up so much money they are quick to pull a deal.
YBS doing a 5 year deal at 4.59% fee £995 with a 75% LTV and 5 year offset at 4.59% same fee and LTV

Pauper_Princess

I applied on Wednesday night last week and the guy said that the deal was set to be pulled at 8pm on the Thursday. It would have been pulled a week earlier but they secured additional funding for it.

My only concern now is that I've heard absolutely nothing since applying! There are meant to be forms coming in the post but nothing's arrived yet. I'm worried now that we're not going to get it at 3.99% even though that's what we applied at!! Thanks for the advice though dimbo, I wouldn't even know about it otherwise :-)