Is it best to use a Broker/IFA?

GH1981

My fixed rate of 3.59% with RBS is ending in the next few months and I was looking for some advice on how best to remortgage.

Value of Property £132,000
Mortgage Outstanding £86,000
We are currently paying our repayment mortgage over 17 years.


My husband and I earn £52k (will probably go up to £54k after pay rises) combined salary and we have £22k debt between us. Our credit history is good except the amount of outstanding debt we have.


I was wondering if anyone knew whether going through a Broker/IFA means you are more likely to be accepted the lowest rate mortgages. I know the amount of outstanding debt we have will probably affect our chances of being accepted.

kingstreet

There are lenders/products only available by going direct, so you need to do some research yourselves as well as talking to an independent or whole market broker.

On an independent basis, a broker will charge you a fee, but will rebate any commission payable to him to reduce the fee payable. You will also get advice on direct to lender deals, where no commission may be payable.

You may also hire a broker on the basis of whole market for commission paying products. This means only offers which pay the intermediary a commission will be recommended and you may be asked to pay a fee on top.

The amount of credit you have is less important than the monthly payment and how that affects affordability. Please confirm the monthly cost. Assuming £22k at 3%, the typical deduction for credit card debt, you would still be borrowing less than 2x income, which with a clean credit and mortgage payment history and only 65% loan to value, should be very straightforward.

ACG

You are more likely to be accepted with a broker in my opinion - but thats more for cases which are hit and miss.

I cant see you having any major issues being accepted (based on the above).

It can be worth seeing a broker, see what they they can find you - they may find you something better than you find yourself, in which case its worth an hour of your time to speak to them. Worse case scenario you have lost an hour of your life.

Ive just had a look and i know 3.59% can be beaten hands down, also based on the figures you have given you are maybe £200 away (on your mortgage balance) from falling into the next bracket - which could open you up to even better rates. - So it could be worth making a payment on your balance if possible to secure a better rate.

Conrad

I'd deffo suggest a direct to lender deal will be cheaper all round. Simple check of rate tables will reveal the best deals. If it helps, perhaps a 3-5 yr fixed rate could make sense.

Look at lenders such as Post Office, HSBC, CO - OP, Direct Line, Tesco, First Direct, Nationwide.

GH1981

Thanks for the replies. I think we are definitely looking for another Fixed Rate as I like the security of knowing what I will be paying. I know that there is no rise in interest rates expected but then anything can happen over the next couple of years.

I suppose I was just worried that large amounts of debt might stop us being accepted if we applied directly.


Thanks for all the advice!