5 Year Fixed Rate Offset @ 5.35% - Who ???

herbiesjp

mchu6am4 wrote:

Hi,

(by IFA who wants to charge me £800 for arranging it which I simply cannot part with)

If you don't want to payher fee then let her take the commission option - that way you do not pay an upfront fee to her and she gets her commission from the lender

toonfish

could have been accord, or C&G (rate going today) although neither of these are offset

MortgageMamma

Broker should have explained the fee at the end of your telephone conversation, thats how I work, but I rarely charge a fee only for very complex cases. I suppose if you have been upfront with her you've done the right thing, sorry for jumping to conclusions.

Pinklepurr

I've just got a 5 yr fix at 5.35% with Accord but we have a repayment mortgage, not offset. You can see their current deals on their website

AndyWallace

Where's the Key Facts Illustration? You always need one when considering a particular mortgage.

This will tell you who the lender is.

Andy.

mchu6am4

Result:

I've managed to get an offset mortgage rate of 5.39% fixed for seven years from First Direct (by going directly). The amount they are willing to lend me is only 4x my salary although I wanted at least x5 being first time buyer.

IS THIS A GOOD DEAL???

(The only negative is that it does come with an offset arrangement fee of £299, + offset fixed rate booking fee of £395 + £160 valuation fee.)

Ash

herbiesjp

But are they lending you enough? You say you needed 5 times income, but thet are agreeing 4 times income.

I just looked at the website and the 7 year deal is (cut and pasted from the site):

7 year fixed rate offset Mortgage

5.79% for 7 years, reverting to our standard variable rate for the remaining term, currently 6.25%.
(offset Mortgage arrangement fee - £299 / offset Mortgage fixed booking fee - £395)
The overall cost for comparison is 6.3% APR.

You know the numbers you are looking at - but 5.79% is fair bit higher than the 5.39% you posted

mchu6am4

herbiesjp wrote:

But are they lending you enough? You say you needed 5 times income, but thet are agreeing 4 times income.

I just looked at the website and the 7 year deal is (cut and pasted from the site):

7 year fixed rate offset Mortgage

5.79% for 7 years, reverting to our standard variable rate for the remaining term, currently 6.25%.
(offset Mortgage arrangement fee - £299 / offset Mortgage fixed booking fee - £395)
The overall cost for comparison is 6.3% APR.

You know the numbers you are looking at - but 5.79% is fair bit higher than the 5.39% you posted

I wanted 5x (maximum as I don't want to put all my savings in a deposit) but 4x may do as I haven't started looking for properties yet to see what I need. Further, as its a new job and they haven't seen any of my salaries yet, but they said once they see a few of the salaries going into account, then they'll be able to look at my case again. Also, I can reserve the mortgage at the rate of 5.39% for six months (but I need to pay £395 booking fee upfront).

With regards to the rate, I applied a few days ago and qualify for the 5.39% valid until Monday 29th Jan 07.

MarkyMarkD

Eh?

YESTERDAY you posted saying you didn't know who a lender was who was offering a particular deal, and could people help you in finding who was offering the loan as you didn't want to apply through the intermediary who was offering it to you, as they wanted to charge you £800.

TODAY you posted saying that you "applied a few days ago" to First Direct and hence qualify for a rate which has since been withdrawn. And in the same post you say that you can reserve the mortgage at a particular rate, but that you'll need to pay the booking fee.

Are you just winding us all up and wasting our time???

Have you applied? Have you booked the 5.39% product? Had you already applied for the 5.39% product when you were asking us about the 5.35% product?

mchu6am4

MarkyMarkD wrote:

Eh?

Have you applied? Have you booked the 5.39% product? Had you already applied for the 5.39% product when you were asking us about the 5.35% product?

I had ALREADY (only just) enquired (KFI) for a fixed 7yr offset mortgage from First Direct @ 5.39% when I posted my question in this forum. However, the KFI is valid for 4 working days @ the rate when I enquired/requested it (hence the low rate of 5.39% which has now increased significantly).

To reserve this deal (at 5.39%) I need to pay the booking fee of £395 before Monday 29th Jan 07 (which I intend to do so.) I hope I've cleared things up.

Question?

Should I also take life insurance and mortgage protection from First Direct? Is it needed?