Which would you choose?...

marathonic

betmunch wrote: »

Plenty of reasons, not meeting lenders criteria in 2 years time. You dont know what the mortgage market will be like then. You dont know what your job or credit file will be then either. I'm more concerned about my first point to be fair, are you purchasing or remortgaging for this mortgage?

Another one which would worry me most is the value of the property dropping so that, in 2 years time, your 80% LTV becomes 95% LTV.

Noone knows what the SVR's will be in 2 years but you can use current rates as a guide.

alberto2012

betmunch wrote: »

Accord are awful to apply too, expect delays, processing problems, and ultimately a reduced loan when your expecting an offer letter. If you are pushing the limits of what you can borrow this can waste a huge ammount of time, and posibly even cost you the house. Think very carefully about using this lender for a purchase, especially if you have promised a quick exchange.

Aagghh,
now im confused.

Our broker gave us options with accord and nationwide.
She did say nationwide were reliable in processing times etc... but the attractive/low monthly payments with accords tracker was appealing...

marathonic

alberto2012 wrote: »

Aagghh,
now im confused.

Our broker gave us options with accord and nationwide.
She did say nationwide were reliable in processing times etc... but the attractive/low monthly payments with accords tracker was appealing...

For what it's worth, I'd go for the 5-year fix with Nationwide if you can easily afford the payment (if you can't easily afford the 5-year fix, the house you're buying is too expensive).

You've got less fees up front, no fees for a remortgage in 2 or 3 years time and the security of knowing what your payments will be for the next 5 years. Then there's the BIG advantage of a lower follow-on rate. If property prices continue to fall and you have a high follow-on rate, you'll have many sleepless nights wondering whether you'll have enough equity to remortgage in 2/3 years time.

The only reason I wouldn't go for it is if you were intending to upsize before the 5 years were up AND Nationwide didn't allow you to port the mortgage.

If sounds to me like your broker is trying for the 'quick sale' and wants you to look at the low payment which is very short-sighted.

betmunch

alberto2012 wrote: »

Aagghh,
now im confused.

Our broker gave us options with accord and nationwide.
She did say nationwide were reliable in processing times etc... but the attractive/low monthly payments with accords tracker was appealing...

Not sure why your confused if I have just re-iterated something your current broker has told you!

One of the guys in my office had 3 applications earlier this year, all took ages to resolve, 2 declined, 1 had the loan amount reduced to a point they could not be used.

There are many lenders that are simply not good at lending right now Accord is one of them.

A good Broker should give you the option and advise on the processing times and general reliabilty of the lender to honour the AIP, which they are not bound to do.

If you like the idea of the 2 years deals ask who was second best for you, what their processing is like and weigh that up against the slightly higher rate. If its not much then go for the better processing, if its a lot chance your arm. Thing is ONLY you can decide at which point its best to try the second cheapest lender.

betmunch

marathonic wrote: »

If sounds to me like your broker is trying for the 'quick sale' and wants you to look at the low payment which is very short-sighted.

Not sure this is true, although could be, as the broker has offered the 3 and 5 years deals.

I think the low payment is speaking for itself and the broker has recommended the best deals for each time frame then stepped back for the OP to decide.

marathonic

betmunch wrote: »

Not sure this is true, although could be, as the broker has offered the 3 and 5 years deals.

I think the low payment is speaking for itself and the broker has recommended the best deals for each time frame then stepped back for the OP to decide.

You're probably right - it's just the sceptic in me!!!

I do think 5-year is a no brainer but I suppose it's a personal choice.

I just feel that, if I had a 5.99% follow-on rate, I'd get nervous with every report I read about falling house prices and would be fearful of having little or no equity left in 2/3 years - forcing me to stick with the 5.99%.

Just as a FYI, I've my mortgage application in for the past month (it finally was submitted on Monday due to the recent issues with Ulster Bank).

It's a 75% LTV 2-year discounted product at 2.9% with a follow-on rate of 4%. Obviously, this follow-on rate could change significantly over the next 2-years (this is more likely now as Ulster Bank need to recoup the costs of the recent fiasco somehow).

I can only hope that house prices stabalise in Northern Ireland (down 10.3% YOY) so that I can remortgage, if required.

alberto2012

Think were going to go with the 3year fix with nationwide.@3.99%.=£448 per month. Svr of 3.99%....

alberto2012

betmunch wrote: »

Not sure why your confused if I have just re-iterated something your current broker has told you!

One of the guys in my office had 3 applications earlier this year, all took ages to resolve, 2 declined, 1 had the loan amount reduced to a point they could not be used.

There are many lenders that are simply not good at lending right now Accord is one of them.

.

Now with a little bit of hindsight... i couldnt agree more!

We were attracted to the low rate/payments and applied to accord through our broker... our app was declined!
Found this unbelievable as it was due to our credit history.. but we have NO debt, no bad marks in the past, we had high deposit...
Couldn't believe they nearly messed up our plans of my familys first house..:mad:

But thankfully, nationwide saved the day by accepting our application. And things are in process...

Point of this story... listen to your gut feeling, (and the advice of advisers ) and don't put blinkers on by being attracted with low rates with a low rate lender!

rimimik

Now with a little bit of hindsight... i couldnt agree more!

We were attracted to the low rate/payments and applied to accord through our broker... our app was declined!
Found this unbelievable as it was due to our credit history.. but we have NO debt, no bad marks in the past, we had high deposit...
Couldn't believe they nearly messed up our plans of my familys first house..:mad:

But thankfully, nationwide saved the day by accepting our application. And things are in process...

Point of this story... listen to your gut feeling, (and the advice of advisers ) and don't put blinkers on by being attracted with low rates with a low rate lender!

betmunch

alberto2012 wrote: »

Point of this story... listen to your gut feeling, (and the advice of advisers ) and don't put blinkers on by being attracted with low rates with a low rate lender!

Its almost like we know what we're doing!!!!