Differing Broker Advice

shebanjoed

Received advice from 2 brokers this week. One no fee and one with a fee. Out of interest to see if any difference.

No fee broker advised we could get a 25 year term (we are both 42). The fee broker advised we could only get a 22 year term. His explanation was that although pension ages have been increased through workplaces the banks lending criteria had stayed the same so he gave me quotes based on 22 year term saying no bank would consider a longer term - obviously quite a difference in monthly payments.

Can anyone confirm? I'm in Scotland if that makes any difference.

Thanks.

hcb42

the real question is what do you want!

I am 43, there is no way I would take a 25 year term, or even a 20 year term - even 15 makes me stressed.

You dont have to let the brokers drive this...what do you want, when do you want the house paid by?

shebanjoed

So its not a hard and fast rule then. I want a 25 year term.

tyler80

We were told that we couldn't have a term that would take my partner past current retirement age (65) even if it wouldn't take him past his retirement age (67)

G_M

If you want a 25 year term and

the no-fee broker is offering you a 25 year term, my advice would be to

go with the no-fee broker!

If you doubt his word, ask him to tell you which lender he is recommending, and give you a print out of the product.

If still in doubt, phone the lender to confirm.

kingstreet

The question surely is, can you provide the necessary evidence of ability to meet the mortgage payments beyond what the lender currently considers state pension age?

I recently had to get a letter from the client's employer confirming he would physically be able to work to 66 as he mortgage term passed his 65th birthday by one month. The lender wanted me to certify I had evidence of ability to pay in retirement, which I didn't and the client didn't have either, so the working later option was the only workable one.

shebanjoed

Thank you.

There are lenders willing to do the 25 year term on the fixed rate I was looking at. The broker was adamant that the 22 year term would not be offered. I'm won't be taking any more advice from him and have decided to go elsewhere.

After the fixed rate ends my plan is to look at shorter terms as my financial circumstances will have changed (all going as planned) and one particular lends appears to approve of this. Fingers crossed.