What have I missed?

MissMessy_2

Ok, as I have said in previous posts I was waiting to har on a property- finally all agreed and looking at mortgages. Our FA cannot beat the Post Office 2 yr fixed at 3.84.... yet EA adviser reckons he can beat it. Waiting for him to get back to us but ave searched the web and cant see anything better??

Have I missed a product?

MissMessy_2

Ok so guy has just come back to us, he is from "Wish Financial" and basically has offered alternative to PO Mortgage-

This is all he will give-

2 yr fixed @ 3.64
Basic Valuation £286, £24 less than PO
Arrangment fee the same
25 yr term repayment £815.56- PO would be £846.02

Total saving over 2 yrs £755.04 less there £200 fee


They obviously wont reveal lender unless we pay the £200 and use them

GMS

Ask for a Key Facts Illustration.

MissMessy_2

Ok, but get the impression they wont reveal the lender unless we pay? Am I wrong? Cant find that deal anywhere so perhaps its a special rate. Only prob is what if we pay the money and its a lender we dont want to use?

GMS

How much are you borrowing?
What is the purchase price?
What are your incomes?

If it is a direct only deal then the broker could charge a fee for researching for you.

MissMessy_2

Purchase price 210k
deposit 31,500k
income 44,500k

I am a little confused with there fees-

3tier

FREE- rate finder service provides details of best headline rate and generic product details

£199- will look at client specific circumstances and will research whole of market- will inform app process provide product illustartion and will carry out further reserach should you get declined

£299- fully supported app process


So basically they wont tell me lender unless we pay?

MissMessy_2

Ok just called them and they have said if the mortgage is not suitable and we choose to stick with PO there will be no charge. My only concern is that the £299 fee sounds quite high?

GMS

It will be a direct only product meaning the broker will not receive a penny from the lender.

It is your call whether you think it is worth paying £199 to find out who it is.

Brokers are being cut out by many lenders at present so to pay a fee for finding a cheaper deal is quite reasonable, provided it is not excessive.

I would charge less but others would charge more.

MissMessy_2

I see your point, but wonder whether were capable of just fillin out the application ourselves to save the extra £100. OR just go to another whole of market broke who charges less??

GMS

Filling in the application yourself is not the issue. You need to know where to apply to in the first place.

Brokers fees and costs are not cheap so to charge a small fee which will save the customer money is perfectly reasonable.

Based on yoru figures of borrowing £210,000 minus £31,500 leaves a loan of £178,500.

This would give a monthly repayment of higher than the stated £815.56.

Still cheaper than the Post Office and the fee will soon be covered by the monthly saving.

MissMessy_2

Ok another broker has revealed the lender for me and its Norwich and Peterborough BUT he said that is open to current accont holders only?? So I wouldnt qualify?

Unfortunately the broker said to be wary of PO as on their traffic light system tere running on a red for very slow at turn arond :-((