Best 75% LTV 5 yr fix on the market?

suisidevw

Because I have some disposable this month. Why not just pay the fees with this cash, as opposed to paying off the mortgage, surely much of a muchness in terms of having the extra added onto the mortgage? I'll still be paying interest on it?

d40eq6

suisidevw- I've been going through exactly the same exercise and if you have 75% LTV then the YBS is the best 5 year fix I can find. However if you can scrabble together some cash from somewhere (about £9k in your case!!) and get down to 65% LTV then First Direct are doing 3.99% with £880 fee and lower valuation/legal fees).

Interesting how the institutions doing these better rates (HSBC Group and Yorkshire BS Group) deal direct only and not through brokers...if you've ever wondered how brokers make their commission back!

suisidevw

Thanks D40. I can get down to under 70% but not 65% which is a shame. Alas!

On another note, friends have just taken the YBS 4.29% with fee assistance as no legal/valuation fee etc. Do you know of the top of your head what the fees are that YBS charge for the 3.99%?!

kingstreet

d40eq6 wrote: »

if you've ever wondered how brokers make their commission back!

A £165k mortgage would normally generate commission of around £495 to a broker from a lender/deal which pays commission. It's interesting the direct deals don't often beat the broker ones by as much!

handytips

Why do people get so hung up on what a Mortgage Advisor earns in commission. The way i see it. What has it got to do with the client ?
Cynical people are usually all bitter and twisted for reasons of other than that of an experience of a broker, ie I can do it better myself....Really. Well i could probably do your job better than you, however i dont want your wages etc etc. As i have said before a good broker will get a 25 year mortgage paid off in approx 17 years with careful manipulation of products on offer when a deal comes to an end etc. A bank will never suggest you reduce the term. I really do not understand the snide remarks by some people. I am whole of market, if i recommend a direct deal then i will charge the customer accordingly. People who use their own Bank for their mortgage, life insurance etc etc will be paying through the nose and i defy anybody to tell me i couldnt beat their current overall payments. Also insurances sold in banks are excessive and half the time the client doesnt really need or require some of the products sold to them. I leave you with this thought. Who are getting done for mis selling PPI cover. The Banks/Societies or Brokers....The answer is of course the Banks/Societies. Some people need a broker for the simple reason they do not understand the process of a mortgage and associated insurances. What i see on here quite regularly are people who are obsessed with FREE. There is no such thing as Free and guess what Martin Lewis is hardly an expert in this field yet people follow him like the Pied Piper with the majic solution. Odd very very Odd.

d40eq6

suisidevw- fees are £995.
handytips- sorry for any offence in the comment. Good brokers (and from other posts you seem to fall into this category) are worth their value. I work in professional services and know how much work goes in that it unseen and unrecognised by the client. My comment is borne out of having used brokers, seen brokers advise family members and gone direct. Too often I've seen brokers recommend a product which they get a fast fee on and which may not be in the client's best interests. For example a broker advised my brother in 2008 to go for a 2 year discounted tracker (0.01% BBR with no floor). I advised my brother to go direct for a 5 year discounted tracker (0.01% BBR with 3% floor). My brother was told that he "could easily remortgage for the same deal in 2010" and that the broker "couldn't get my product". I rang up on my brother's behalf and confirmed that indeed he could. My brother is now regretting the broker's advice. Difference was I was working purely in my brother's interests, the broker wasn't. Good brokers have to work purely in the client's interest. I think that is a hard balancing act.

handytips

discounted tracker, thats a new one on me. Is the product a discounted rate or a tracker rate, back in 2008 the best product overall would have been a Woolwich lifetime tracker i do hope your brother has that product. Yes i do work in the clients interest, and if the best deal is a direct deal i will charge a fee of 0.35% of the borrowing to cover my costs, after all who works for Free. Before you ask i am not the Queen

AdamS

Do the First Direct and YBS 5 year fixed mortgages allow overpayments?

Thrugelmir

Follow on rate should be considered as well. YBS's SVR is 4.49% above base.

suisidevw

Thanks Thurgel.

D40, that's not the only fees, there's also valuation and other fees! That's why maybe the 'fee assisted' rate may be best!