Advice please

Carl_Fitz

Myself and my partner both own our houses outright. Both terraced and worth around £65k. We've found a semi we want to move in to and our offer of £155k has been accepted. We're looking at selling both properties and getting a small mortgage on the semi. When one of the houses sells we can start the process, put down a £65k deposit and move in. What kind of mortgage will be best to pay the other lump sum off when the second house sells? Will there be a penalty? Ideally we'd like to be left with a £40k mortgage. Any advice would be much appreciated

ACG

Your probably looking for one without early repayment charges or potentially an offset, it might be worth a chat with a mortgage advisor to get some proper advice on it though.

GMS

As a plan b have you considered keeping the current properties and letting them out?

Could look to refinance both to raise a deposit for the new purchase.

Possibly quicker than waiting for them to sell.

Carl_Fitz

Got an appointment with an advisor on Thursday but I've always wondered if these people try to influence you to buy a product that gives them commission? Both these house are in a town called Rochdale which I'm sure needs no introduction, an estate agent told us to sell as quickly as we can as in 5 years time they'll be worth 20% less. Only a certain sort of community are buying in this area now so renting is not an option.
Thanks

Thrugelmir

Carl_Fitz wrote: »

Got an appointment with an advisor on Thursday but I've always wondered if these people try to influence you to buy a product that gives them commission?

Ask what the fees are upfront. You won't a worse deal because its through a broker.

Carl_Fitz

There isn't a fee for the appointment, why would they do this for free?

kingstreet

You will be offered a level of service set out on the adviser's Initial Disclosure Document.

It could be;-

Independent - you pay a fee and the adviser rebates to you any commission paid to him

Whole of Market (for commission paying products) - the adviser is paid by the lender and may charge you a fee on top of that

Panel - the adviser has a limited panel of lenders who pay commission and may charge a fee on top

Single lender - the adviser works for one lender and may receive commission and/or a fee.

ACG

I know Rochdale pretty well, although im on the otherside of Manchester.

The commission we get can vary slightly but not by a lot. In the main they all pay around the same amount so dont worry about that. We also have to recommend the best product for you - not what pays us the most money.
The difference in commission isnt worth the hassle of me spending time finding out who pays the most - i would rather use a lender i know the application will fly through with rather than get an extra say £50.

When we do a search for the product, if we used say the 5th cheapest lender, we would have to explain why we didnt use the 4 before it, so it just creates more work for us.

Carl_Fitz

Ah thank you, I understand it a bit more clearly now. Suppose I'm just like a customer coming into a shop, that's why there's no fee.

Carl_Fitz

Or maybe not. His fees are £300 if I decide to use him. He found a mortgage that will cost £995, 3% with £800 surveyors fees and had no penalty for paying a lump sum once the other house sells. He advised me to only sell one and rent the other, the estate agent will advise me to sell cause he would then get his fee. £1500 stamp duty and £1000 solicitors few came as a little shock. Didn't realise moving home cost so much

ACG

There are loads of reasons why people would use brokers. Although were not for everyone.
- People with less than straight forward situations (unusual incomes, adverse credit etc).
- People who want a helping hand with the process.
- People who dont have the time to research whats available
- People who are not interested in the rate too much but have future plans and want a lender who can accommodate those changes.

There are loads of reasons, but if you have straight forward circumstances and your happy to do the leg work yourself then there is no reason why you shouldnt do it yourself.