FTB - Mortgage options. Help please!

flipiddy

Hi all,

My partner and I have had an offer accepted on a property last week for £210k. Our deposit is 57k for the mortgage.

We have been dealing with L&C up until now, who gave us a decision in principle, however, the mortgages that have been suggested are not especially competitive. Their suggestion is fixing with Woolwich for 3 years. I'm thinking that we would be better off with a tracker for this term. We would prefer fixing for 5 years, which they do not offer without considerable arrangement fee (1.5k+)

We have seen a Yorkshire Building Society offer for 5 yr fixed, 3.69% with 1k arrangement, £780pcm which would suit us. Combined income is 2.9k per month. No loans. £3k CC.

However, the spanner in the works is that we have a couple of later payments for CC dating back to 2010-2009. No missed payments. Our equifax/experian reports are good/good for me good/fair for my partner.

We are a bit nervous about going direct to YBS in case we don't get the best impartial advice about our chances. It might be a bit late to see a mortgage advisor as the vendor wants to move quickly and the EA is on our case to be taking action.

So, any thoughts and advice? How do Woolwich compare to YBS for FTBers like us? Are they more stringent?

A crystal ball would be nice right about now. TIA.

Thrugelmir

flipiddy wrote: »

We have been dealing with L&C up until now, who gave us a decision in principle, however, the mortgages that have been suggested are not especially competitive.

Have you asked why these were recommended?

There's almost always a cheaper deal in the market. The question is do you meet the lending criteria for the product.

flipiddy

Thrugelmir wrote: »

There's almost always a cheaper deal in the market. The question is do you meet the lending criteria for the product.

I suppose this is the big question, isn't it?

The L&C MA recommended the Woolwich mortgage as he thought that this had the lowest overall cost. Taking everything into account Ybs would work out about £1500 cheaper over the three years, disregarding any base interest rate rises over the additional 2 years after the 3 year Woolwich term.

It's really causing us some turmoil as to which path might be the best option.

Conrad

L&C are not fully independant, there are lots of lenders they dont deal with such as the Post Office, YBS, First Direct, Co - OP.

Many people do not need a broker, afterall brokers cannot access every deal and they will try to sell you thier insurance (get it cheaper by going direct or to an insurance broker who gives back halve thier commision).

Hard to say what impact the Cards will have, only by applying will you know.

No need to be stressed, you will get a mortgage, now crack on.

Thrugelmir

flipiddy wrote: »

The L&C MA recommended the Woolwich mortgage as he thought that this had the lowest overall cost. Taking everything into account Ybs would work out about £1500 cheaper over the three years, disregarding any base interest rate rises over the additional 2 years after the 3 year Woolwich term.

Look at the follow on rates after the fixed term has ended. There is a divergence of lenders SVR's.

Remortgaging between lenders does cost money. So don't assume its a choice worth making in a few years time.

flipiddy

Thank you folks.

We are going to apply for the YBS mortgage and see what comes of it. We have taken the first step and received an AIP. Will put in an application on Monday.

Look at the follow on rates after the fixed term has ended. There is a divergence of lenders SVR's.

Remortgaging between lenders does cost money. So don't assume its a choice worth making in a few years time.

Yes, this is something I have definitely been mulling over. The Woolwich changes to 3.89% SVR after 3 years. The YBS is 4.99% SVR after 5 years, but we would be looking to remortgage both of these. 5 years is enough time for us to absorb the cost of doing so. 3 years is a bit more of a push.

Hard to say what impact the Cards will have, only by applying will you know.

No need to be stressed, you will get a mortgage, now crack on.

Thank you. Appreciate the advice. Now just going to get on with it!

Thrugelmir

flipiddy wrote: »

5 years is enough time for us to absorb the cost of doing so. 3 years is a bit more of a push.

Adds up.

Legal fees, product fees, valuation fees, mortgage exit fees. Soon can add up to a couple of thousand pounds.