broker or no broker?

loubel

We're wanting to remortgage but are unsure of how best to approach it. When we bought we used a broker but now we're in a better financial position we have the option of going to the lenders directly but we're not sure if this is a good or a bad thing.

We've browsed some lenders websites and also some comparison sites and the best we've found so far is a fees free 2.85% 2 year fix which we'd be very happy with - is it likely that a broker might have access to anything significantly better?

We would need to retain some unsecured debts but everything else should be pretty standard but we've no idea how complicated applying direcly is or if there are any pitfalls or traps we should be aware of?

Any help appreciated.

kingstreet

The best deals are reserved for those who are squeaky clean. If you have no sticky-outy bits which prevent their round peg in round hole approach you should be fine going direct.

What's the loan to value, mortgage amount etc?

loubel

Thanks, as far as I know our credit history should be fine but I'm no expert on what they're looking for.

We're after roughly 60% LTV but whether we get that low rather depends on the property valuation as it's a bit borderline if they are overly conservative - am not sure how exact they are on remortgages. Borrowing approx 2x our gross income but retaining our unsecured loans.

kingstreet

You're right on a threshold at 60%.

If you get in at 60%, there will be better deals from some lenders. If you go over, the deals may get worse.

It may be worth making sure your chosen lender is as good at, say, 70% as it is at 60%.

If you want a totally fee-free 2 year fix, ING's 3.29% is available. Nat West's 2.55% has a higher fee of £999 and at the top of the fee scale comes Woolwich at £1,034 fees for its 2.49% deal. Paying a fee for the keenest rate should be reserved for the bigger mortgage where the rate will have the biggest impact.

At 70%, Woolwich is still there at 2.49% at the same fee, ING increases to 3.39% for its fee-free deal and Accord comes in at 2.89% with a fee of £519.

I can't see anyone offering 2.85%. Can you confirm which lender, please?

loubel

Thanks again. It's NatWest at 2.85

I'm not after totally fees free but by my (admittedly very basic) calculations we're best off finding a deal with no arrangement fee and slightly higher % as the difference in our payents over 2 years would not be high enough to be worth spending the extra money for the loan we're after.

Will definitely make a note of the 70% LTV deals as well; thanks for the advice.

GMS

When comparing deals also look at valuation fees. A free valuation deal can be owrth paying a little bit extra on rate.

kingstreet

I can see that NatWest deal on their site, but it isn't coming up on my sourcing system. :mad:

And yes, fellow brokers, I do have intermediary and direct switched on on MBL.

It is fee-free but only available upto 60%, so you're going to have to be careful because the next one up is 3.19% for two years with £999 fee upto 75%.

loubel

Thanks again. We'll have to sit down and do some homework on the 60 and 70% LTV rates.