Fast Track - Good Deal?

thedogsgottago

Hi

I have been offered a fast track mortgage with Abbey for 4..69% fixed for 5 years, with a £995 fee.

Broker says Abbey are the only one that will have us. OUr credit rating is 999 and we are burrowing 5 x income.

Thanks

GMS

Fast track merely speeds up the process as the lender will not require proof of income.

As for whether or not its a good deal nobody can answer as your circumstances are unknown.

Your broker has seemingly answered this question for you. If you have any worries or doubts you should speak to the broker.

Inevitably you will have answers suggesting HSBC and Post Office but you may not have fitted for them.

_Andy_

I do hope you actually have proof of income as it may well be requested. Your thread below indicates you don't -

http://forums.moneysavingexpert.com/showthread.php?p=37403128&highlight=#post37403128

Conrad

Many a broker and client has come unstuck, often well after completion when lenders and or the regulator asks for the income proof dated prior to the application being made.

Also, several lenders do fasttrack. Abbey are a shambles incidetally. Your broker sounds like one of those I meet that hasn't much experience.

koexelek

Conrad wrote: »

Many a broker and client has come unstuck, often well after completion when lenders and or the regulator asks for the income proof dated prior to the application being made.

Also, several lenders do fasttrack. Abbey are a shambles incidetally. Your broker sounds like one of those I meet that hasn't much experience.

It is the broker who is primarily taking the risk with Abbey by putting down income that cannot be substantiated.
They have be known to ask for proof of income ( from the broker, not the aplplicant) long after completion. If the broker can't come up with the goods they run the risk of getting struck off.
I don't think the Abbey would knowingly do five times income, so perhaps the broker is just gambling that this will be one that isn't checked

herbiesjp

Abbey do retrospective checks as well - so while it may go through initially, you may come unstuck later.

I'd suggest getting a second opinion from a broker who knows how to do the job properly.

dimbo61

4.69% five year fix is a very good deal IF you can get it!

Conrad

koexelek wrote: »

If the broker can't come up with the goods they run the risk of getting struck off.

I was reading up on recently struck off brokers and most were also given large £100,000+ fines. A common misconception is that your PI cover will meet this cost for you! It won't where you failed to follow the rules.

FraudBuster

Fighting Financial Crime in the new regulatory world


And the responsible lending proposals we’ve put forward in the Mortgage Market Review are also likely to make a difference. Lenders will be required to verify income for all mortgage applications. This closer scrutiny will discourage applicants from inflating their incomes on applications and will help reduce mortgage fraud. The power of income verification in combating financial crime was illustrated by a pilot scheme run by Her Majesty’s Revenue and Customs (HMRC) last year. This scheme allowed lenders to check whether income details supplied on mortgage applications matched the data held by HMRC. During the pilot over £111m worth of mortgage fraud was prevented.

http://www.fsa.gov.uk/pages/Library/Communication/Speeches/2010/1109_mc.shtml

thedogsgottago

You have me worried now. I was recommened this broker by a friend. I have given the broker our income which is on our accounts. The rental income is the problem apparently, thats why a fast track mortgage has been suggested, she has told me that as we have a high credit score and an LTV of around 65% that they will lend 5 x income.

GMS

thedogsgottago wrote: »

You have me worried now. I was recommened this broker by a friend. I have given the broker our income which is on our accounts. The rental income is the problem apparently, thats why a fast track mortgage has been suggested, she has told me that as we have a high credit score and an LTV of around 65% that they will lend 5 x income.

Why would rental income be an issue?

If you have proof of income then there should be no issue.