Any alternatives besides Northern Rock?

kingkano

We are looking for quite a generous mortgage for our next home purchase. House hopefully around 250k with 25k deposit - 225k mortgage (could perhaps stretch the deposit to 35/40k but would prefer to keep the spare cash handy).

Salaries are 27500 + 2500 bonus and 15000 + 1000 overtime (pretty much guaranteed). No debts at all. NR said we have a 'high' credit rating.

We have been to an IFA who says pretty much NR would be the best bet. They gave us an AIP for 208.5 normal or 235 extended if we take 5yrs+fix. He said perhaps Abbey might look but couldnt offer any other choices.

Is he right? We are looking at a 10yr fix (hence the need for best rate we can get) and some flexibility with overpayments. NR bothers us because the rates have gone out a bit (esp at 90%) and the fee to get the best rate is rather huge (1995).

I like Nationwide's products but is there any chance of them going to our income multiple? Or any other suggestions we can ask the IFA or check into ourselves?!

thanks

homer_j_3

No disrespect to the mortgage IFA's on here but its absolutely amazing how many people get recommended to NR.

In my experience, NR very rarely come top of the tree where deposits are involved and with affordability based lending becoming more popular there are many more people that will income stretch. If you got a high with NR then you should be OK.

I would go and find a 2nd opinion - do not get credit checked though again...

MortgageMamma

Yes Homer J is right there are quite a few lenders who would do this for you, however a few points about NR

Their arrangement fee's are massive

If you are taking a long term fix and then port your mrotgage later on the broker gets paid for it

Their proc fee's are v generous espec on the together range

Their service is excellent IMO

Other lenders who will stretch that little bit further include:

Abbey
Cheltenham and Gloucester
Accord
Freedom Lending
Royal Bank of Scotland

and more

PBA

If you know you like the Nationwide product then ask a Nationwide branch. No broker is going to know their products, lending criteria, etc as well as someone who only deals with their mortgages.

Abbey are also a possibility (you're almost within their standard lending multiples, but not quite). Again a branch advisor would certainly be the best person to help you.

homer_j_3

I agree with you PBA - however there are a few points to consider:

There is an affordability calculator that brokers will use and the underwriters are only allowed to go past this by a set amount.

By using someone who can compare deals and show you the difference between the deals available then you will see that you have got the best deal. In the OP it would come across that they do not feel as though they have got the best deal because they haven't been told why it is the most suitable product for them.

Often a large arrangement fee (not % based) can pay dividends on larger mortgages but without understanding what the OP does or doesn't want it can be difficult to say either way. My opinion is that there are better lenders where deposits are concerned than NR - they do not try to win that king of business by being top of the tree. Go to 100%+ and now some adverse stuff and they are trying to get more business there because it is more profitable.

kingkano

Cheers thats food for thought. As I say, the arrangement fee on NR was huge and thats whats put me off them now (considering the rates on offer). Also once I got the KFI and saw the fee for the IFA, I was a little shocked (on the 10yr fix I think it was nearing £2k!! that wasnt a together as we have the deposit.) - tempting to pay him and take the fee if I could! lol.

Thanks I will look into those lenders and ask around. I agree not good to get another credit check if we can. I guess the risk is if they'd do it. Do any do soft checks? Funnily enough our current mortgage is RBOS so they might be worth an ask since we have a record with them!!

Interesting to hear branch advisers might be better. I thought intermediaries sometimes get products not available in branches and can get extra flexibility on applications? Or is that an old wives tale...

Thanks for the replies.

MortgageMamma

PBA wrote: »

If you know you like the Nationwide product then ask a Nationwide branch. No broker is going to know their products, lending criteria, etc as well as someone who only deals with their mortgages.

Abbey are also a possibility (you're almost within their standard lending multiples, but not quite). Again a branch advisor would certainly be the best person to help you.

You've got to be having a laugh?! If my local branch are anything to go by I'd rather take advice from a monkey

Can't speak for the rest of the UK though!

MM

homer_j_3

no not an old wives tale. you dont need to pay a fee for advice

kingkano

homer_j wrote: »

I agree with you PBA - however there are a few points to consider:

There is an affordability calculator that brokers will use and the underwriters are only allowed to go past this by a set amount.

By using someone who can compare deals and show you the difference between the deals available then you will see that you have got the best deal. In the OP it would come across that they do not feel as though they have got the best deal because they haven't been told why it is the most suitable product for them.

Often a large arrangement fee (not % based) can pay dividends on larger mortgages but without understanding what the OP does or doesn't want it can be difficult to say either way. My opinion is that there are better lenders where deposits are concerned than NR - they do not try to win that king of business by being top of the tree. Go to 100%+ and now some adverse stuff and they are trying to get more business there because it is more profitable.

I have been sneakily using some of those intermediary calculators myself :rotfl:

The explanation he gave was based on us perhaps wanting the 235 on offer from NR. Because he said whenever its a stretch like that he always goes to NR as he has high level of acceptance.... I didnt realise c&g go as far perhaps even further (maybe he didnt either or doesnt deal with them). More armed I can go back and ask though.....

As to what I want.... a nice 10yr fix to keep my repayments at a level we are comfortable with. I have been comparing the total cost over 10yrs and the repayments. I wouldnt mind a high fee if it meant a decent rate/repayment. The NR product seems to have a high fee and only a very avg rate.

Thanks for the opinion on NR. As I say I'll definitely bark up some other avenues before I go back to him and being armed with more info thanks to here I can be a bit wiser.

kingkano

homer_j wrote: »

no not an old wives tale. you dont need to pay a fee for advice

sorry should have said the 2k was his fee from NR I believe.

MarkyMarkD

Funnily enough, I was just reading a broker's recommendation note on NR - sad I know - which didn't like NR, as it happens. It mentioned that NR pay way more to intermediaries than other lenders, particularly for 10 year fixed mortgages.

It has to make you a bit cynical about the motives of any lender who recommends that specific NR product.

And it is definitely true that NR's fees are among the highest in the industry.