Accord questions (any brokers out there who can help?)

Daniel_gecko

http://www.accordmortgages.com/products/mortgage-product-range.html

I am interested in the new Accord mortgage.
Fixed for 5 years at 4.19% with £95 booking and $400 fee. Plus valuation fee.

I see that I require 75% deposit.
The builder is giving me 5% towards my deposit.
Let's say the price is £100 for simplicity, does this mean I need a deposit of £20 + the builders £5?
Or does it mean Accord will value the house at £100-£5 (incentive) = £95, and then ask me for 25% of £95?

Are Accord good?
Is this a good mortgage rate?

Senior_Paper_Monitor

Yes you understand the builders deposit correctly - Accord accept a 5% builders deposit (make sure this is not a 'discount', they don't accept that).

Yes the Accord deal is pretty good (particularly if you assume you need to benefit from the builders deposit).

Accord are a perfectly good company - BUT their current servicing levels/timescales are appalling.

kingstreet

You need 25% deposit, of which the builder gift is allowed upto 5%.

So, £100,000 purchase price means £5,000 gifted by builder and £20,000 from you, leaving the £75,000 or 75% mortgage you need.

The deal's good. The service less so.

SPM got there first!

herbiesjp

Rate is good, but I've found Accord to be a bit hit and miss in the past.

Daniel_gecko

Senior_Paper_Monitor wrote: »

Yes you understand the builders deposit correctly - Accord accept a 5% builders deposit (make sure this is not a 'discount', they don't accept that).

kingstreet wrote: »

So, £100,000 purchase price means £5,000 gifted by builder and £20,000 from you, leaving the £75,000 or 75% mortgage you need.

Great stuff [: I spoke with ING lately and they wanted 75% of the purchase price minus the builder deposit. (Which in the example would have been £100,000 - £5,000 = £95,000, 25% of which being £23,750 deposit needed rather than my 20% of £20,000 + the builder's 5% of £5,000. The actual price is £170. I probably have up to 30% deposit but I would like to nab a 75% ltv and leave a large chunk for spending/furnishing. I think I've done well to save up this much by 23, deserve a bit of fun



RE : service, is this really important? This is my first mortgage so I don't know how important it is. Is it not as simple as just paying the monthly cost quietly for 5 years then talking with a new lender?

Thanks guys

kingstreet

If you're buying a newbuild, the target will be a 28 day exchange. The builder may get shirty if your lender stops them achieving that because stuff sits on a pile waiting to be looked at for days on end.

Saying which, I don't think any lender has the market for good quality service at the moment. They've all scaled back dramatically in the last few years and got rid of brilliant staff to move processing to different parts of the country.

I take it you have a broker? Ask them for an opinion.

herbiesjp

Service is important, as you do not want to be strung along by a lender for several months, only to then be declined. That would waste everyones time, and potentially money also.

So it needs to be a combination of best rate/fees/service.

Daniel_gecko

Alright.

Yeah I'm being made to go through a broker. I don't know whether that's a good thing or not, they seem nice people so far and I don't have to pay for it. (I'm assuming they get a kickback from the lender which is then passed on to taylor wimpey). The house should be finished in Aug/Sep, so I guess plenty of time for them to blunder along?

I've heard some things about mortgage offer expiry, not sure how long accord's offers last.. but at the moment the only offer I have is a rather rubbish 5.24% from Abbey.. so I'm keen to get a better offer secured.

handytips

Accord are part of Yorkshire BS
Kickback ?
Accord pays a procuration fee to the broker for arranging the mortgage usually a paltry 0.35% of mortgage amount.
Just done one via Accord (purchase) and got it offered in 10 days, however some people have differing experiences with them.
Perfectly good company to use. Best of luck
By the way. Whats the problem with using a broker ?

Daniel_gecko

No problem at all, just not something I would have done if it was left up to me, as I wouldn't know if it was worth the fee (not even sure how much work it saved me since this is my first mortgage) but since it's fee free anyway this time I don't mind.

Maybe if I did my first mortgage by myself I might be begging to use a broker 2nd time round

Doshwaster

I am 13 months into an Accord mortgage and I really cannot fault them. The application process was smooth (apart from the cashback cheque was sent to my solicitor who lost it) and when I called them recently to arrange a lump sum payment it was all handled very efficiently.