Natwest vs Abbey Mortgage.

ftb_kingston

Hi,

I am a FTB buying a house in Chessington with a 10% deposit. (purchase price 231500)

Already have an offer for the mortgage (90% LTV) with abbey at 5.79% fixed for 2 years. Planning to exchange contracts this Friday with completion after 6 weeks.

However saw the rates for 90% LTV mortgage from Natwest which are better than abbey (4.99% fixed for 2 years) . This will save me around 100 pounds in monthly mortgage payments.

Do you think its a good idea to apply to Natwest this late in the process?

I can exchange in 4 days. At the same time put in an application with Natwest. If they offer me a mortgage complete (6 weeks from now) with that .

If not then I have the Abbey offer already and can complete with that.

Does the about sound OK/workable ?

Thanks

Thrugelmir

ftb_kingston wrote: »

Do you think its a good idea to apply to Natwest this late in the process? I will exchange this weekend and if Natwest make me an Mortgage offer go ahead with that one . If not go ahead with Abbey.

Optimistic to expect a mortgage offer to be turned round in 4 days.

ftb_kingston

Thrugelmir wrote: »

Optimistic to expect a mortgage offer to be turned round in 4 days.

Not expecting to get an offer in 4 days.

What I meant was that I exchange in 4 days. At the same time put in an application with Natwest. If they offer me a mortgage complete (6 weeks from now) with that .

If not then I have the Abbey offer already and can complete with that.

Does the about sound OK/workable ?

Or it better to delay the exchange till I get the Natwest offer?

GAH

I wouldn't be committing to change anything after exchange, always before.

Before any of that though, would the vendor be happy with you potentially holding up the transaction?

ftb_kingston

GAH wrote: »

I wouldn't be committing to change anything after exchange, always before.

Before any of that though, would the vendor be happy with you potentially holding up the transaction?

If i decide to get a Natwest offer and then exchange, then the period between exchange and completion will be 3-4 weeks instead of 6 weeks as currently planned

Thrugelmir

ftb_kingston wrote: »

If i decide to get a Natwest offer and then exchange, then the period between exchange and completion will be 3-4 weeks instead of 6 weeks as currently planned

Why the change?

Aren't you expecting to exchange this Friday?

Senior_Paper_Monitor

One of several risks here is that if Natwest issue the offer, but you don't take it up they have a £999 fee due - the wording of the KFI is not terribly clear in my view but that is what it means.

They would without any doubt as I understand their policy enforce this if the situation occured and you went elsewhere.

leedom

I am just doing the same thing albeit my sale is progressing very very slowly due to a couple of issues.

The Natwest mortgage deal I have has no arrangement fee - is this the one you are looking at (there are 2 ver similar ones)

Best of luck

ftb_kingston

leedom wrote: »

I am just doing the same thing albeit my sale is progressing very very slowly due to a couple of issues.

The Natwest mortgage deal I have has no arrangement fee - is this the one you are looking at (there are 2 ver similar ones)

Best of luck

Yes , the one with £0 fees and 4.99 rate of interest.

Any idea on what is the valuation fees for this?

Thanks

leedom

I was told £257 although this is on a property worth 140K so it may be more for a more expensive one? Not sure.

good luck

ftb_kingston

An update on the purchase.

Exchanged while having an offer from Abbey(Santander).

Applied for Natwest mortgage. The valuation survey came back with the same figure as the offer.

Got a mortgage offer from Natwest and completed with that last Friday.