Does 'all of market' mean just that?

skinnyman9000

I am a FTB with a 15% deposit and have had an offer accepted on a house of £125k. Been to see my mortgage broker today, they have suggested the following mortgage:

Nationwide 2yr tracker
4.19% then 3.99%
£240 valuation fee
£99 booking fee
£400 arrangement fee

They suggested this as it was described as a 'easy to obtain, run of the mill high street FTB mortgage'. Their customer service is also rated as very good, admittedly by my broker.

Now, this evening I've been on the net and found the following:

Post office 2yr tracker
3.79% then 4.49%
£240 valuation fee
£0 booking fee
£995 arrangement fee

Co-op 2yr tracker
3.79% then 4.24%
£275 valuation fee
£0 booking fee
£0 arrangement fee

Britannia lifetie tracker
3.29% + baserate
£150 valuation fee
£150 booking fee
£349 arrangement fee

Now, to my admittedly untrained eye, all 3 of those mortgages look like better deals than the one recommended to me. The only saving grace of the Nationwide mortgage offered to me is their relatively low variable rate of 3.99%, assuming the base rate stays around the level it is now for 3-4yrs it would be very easy to sit as this rate once the initial 2yrs is over.

What are people's thoughts on this? Have they really recommended the best mortgage available? If not is there any reason why they would ignore these 3 I've found? Am I better off trying to go at it alone or do they actually know what they're talking about?

All help greatly appreciated.

Dave_Ham

Ok - so "whole of market" does not mean the entire market, it is typically restricted to commission paying lenders only.

The deals you have found are with lenders that do not pay commission to introducers/brokers

You can engage some brokers on an independent basis where you pay a fee for advice and they do search the entire marketplace..

Also, your circumstances may not be suitable for all lenders criteria so cannot qualify if these products/lenders would be right for you...

skinnyman9000

I have no outstanding debt, my credit profile is squeaky clean, and I earn £31000/yr plus a further £9000 in regular overtime. I think I'd have to be pretty unlucky to get turned down on any application tbh.

The Co-op mortgage was found on the moneysupermarket website (bad I know) but I can't seem to find it on their own website, so I should probably discount that one.

The Post Office and Britannia mortgages only work out at £25/mth less than the Nationwide mortgage, but these savings will be forfeit IF Nationwide's variable rate remains at 3.99% once the 2yr tracker term is up.


I hate this mortgage lark. I wish I didn't have to research things so much, if I just took the broker's word for it I would have signed on the dotted lie today at 4.2% and carried on about my day.

dimbo61

Why are you looking at 2 year tracker deals ?? Because they are the cheapest on the market NOW!
Do you plan on staying in this property long term ?
Use "whatsthecost" and see how much you will clear off the mortgage in 2 years.
You have not stated the mortgage term 20/25/30 years or maybe even 35 but I guess you will have paid very little off over the 2 years and then you have remortgage time at 80% if you are lucky or 85/88% if housing market has stayed flat.
Rates have never been this low and some great 5 year fixes on the market even at 85% LTV and you will have the LTV below 75% in 5 years.
ONLY my views and not advice GOOD LUCK

skinnyman9000

Mortgage term is 25yrs.

The only decent fixed rates we're finding are for 3yrs @ around 4.8%, 5yr fixed rates are around the 5.5% mark. This means that interest rates would have to increase by 1% within the next 12-18months for a 3yr fixed to be cheaper than a 2yr variable. Especially when the standard variable rate at Nationwide is only 3.99%

I just think that taking a fixed rate over 3yrs wouldn't make sense as personally I don't think we'll be seeing a base rate rise over the next 2-3yrs, and even if we did it would need to raise by 1% within the next 18 months before we'd benefit from a fixed rate.

I don't pay too much attention to the full 25yrs repayment when it's possible to remortgage so frequently.