Applying for a mortgage TODAY!

scotslad1983

Hi all,

Today I plan to apply for my mortgage - signing up to possibly the biggest debt in my life, of around £75000.

A few things concern me however. I have spoken to three mortgage advisors and they have given me quotes and illustrations for separate mortgages with a few different banks. A fee will not be charged for using them, as they will take commission from the sale of the mortgage.

Yesterday I looked at the banks mentioned, and they have a slightly lower rate, and slightly lower arrangement fees. Is there a catch here? It seems too easy that the mortgage advisor tells me the best deal - then I undercut them slightly by going direct to the bank?

Also, my other slight problem is I have a proposed entry date of 28th May, but I am still waiting on the seller buying somewhere else. Can I force a date upon him to move out, is this legal, and indeed moral? I don't want to lose out on a mortgage because I can't give a definite entry date, and it takes 4-5 weeks to process apparently, so need to apply this week to have in time for my provisional date.

Any help would be greatly appreciated, many thanks.

CLAPTON

if you can get a better deal by going direct then do so.


the completion date (the date you become the full owner and can move in ) has to be agreed between you and the seller and is formalised at the exchange of contracts. (usually a couple of weeks before completion).

Mortgage lenders know this. when organising your mortgage, the mortgage company will not expect you to know precisely when you will move, although you should be attentive to how long their offer is valid for, especially as interest rates are likely to go up this week.

if your seller hasn't yet found a property to buy i would doubt that you will move in by 28th May.

scotslad1983

Thanks mate. To be honest, I don't even know if he's got anywhere yet. My solicitor would get in touch with me to let me know I assume?

maryjane01

Maybe for some reason you do not meet the banks requirements for their lowest rate. Often you need a larger deposit for the best rates, lenders can have a range of different rates with different criteria, so look closely at the fine print.

scotslad1983

Hi Maryjane, thanks for this. I did take this into consideration when I checked this, but I require about 55% LTV, and the mortgage is available up to 75% LTV, so can't see any problems here.

purply

just wanted to share my experience.

spoke to a few brokers-they gave me 'deals' which weren't deals-they were really expensive. personally, i feel they recommended the mortgage that they did because they got the highest commission from them-they said they were independent, whole of martket etc but at the end of the day, they can say what they want.

the mortgage i found was the best deal by far for me. even with higher lending charges etc slapped on, still cheaper for me to go with the one that i found.
im not saying not to use brokers, but do your own research too.

payless

as you know I answered you on the your other thread about different rates across difference distributions channels.
Seems like with this lender they are offering something different to direct than via brokers

( One other major lender is current offering much better deals via brokers than direct)

.
Although just had a look and the direct product on the website implies max 50%LTV- not sure if branches have dirrent
(web offer also comes with a fee and low maximum loan, so less likely to appeal to mass market)

Rafter

Scotslad,

Some lenders do only offer the best deals to direct customers, because they are not having to pay the advisors you have gone to £100's in commission. However, advisors need to live too and if you are only saving a few £'s isn't it better to give the people who sourced the deals for you something for their time and effort?

As others say, you cannot force a date if you are part of a housing 'chain' make sure you have somewhere to stay after 28 May if your current lease is up - there are often delays.

R.

scotslad1983

Hi again Payless,

Can you just check I'm reading this correctly then? I see a 2 year fixed rate at 5.19% for up to 75% LTV, with a £499 product fee. Is that right? I'm aware there is a 4.99% fixed for two years for a 50% LTV though...

payless

Hi

Yes I see it know, initially all I could pull up was the page with the 4.99% deal

Their broker diversion now lower rate than you mention but with a higher fee ( so over 2 yrs costing more on a mortgage of your size).

Brokers can add value , but if the same lender is offering a cheaper rate , its for you to decide if you think their "added value" is worth it