mortgage from adverse credit lender?

jovcry

A mortgage adviser has recommended me to take out a mortgage with GE Money Home Lending, (also called first national or pink home loans) who apparently specialise in lending to people with a poor credit history. We are purchasing a £400,00 house and have a £200,000 deposit . We have no loans,credit cards etc so probably have a pretty good credit rating.

The adviser has said that this company offers the best interest rates to those with good credit, as they are not as swamped with applications as the bigger lenders. I'm a bit nervous about this and wonder if anyone has had dealings with this type of lender or can offer any advice. Am I safer to stick with the high street lenders?

absolutebounder

Sounds dodgy to me Salesman probably good at bullsh1t Did I Teach him?
what rates are you being offered let the brokers here tell you if its good

homer_j_3

what rate have they offered you? What fees are involved for the advice and the mortgage itself.

How many times your income is 200k? Are you needing an income stretch?

jovcry

being offered 3 yr fixed rate of 5.44% The adviser was from moneyextra.com and GE money home lending will pay the broker a fee of £1050, we just pay arrangement fee of £799. The mortgage is about 3 times our joint income. What's an income stretch?!!

homer_j_3

not 3 x your income - thats a walk in the park lol...

The deal doesn't sound that bad on the face of it. The arrangement fee is average but very good for the size of loan you require.

Are there any extended tie in periods?

Just done a quick calc and you would need to find a mortgage for 5.63 on fee free deal to match overall cost.

jovcry

No extended tie-ins but I was told that their customer service is not great, the mortgage is not portable , (that's ok as I'm intending to stay put) and that the redemption fees within the 3yrs is a whopping 7% of the loan.

homer_j_3

if you have no intention of moving, the 7% shouldn't be an issue if you are not intending to move.

It is a large fee though and no portability means you are well and truly stuck should circumstances change.

I personally find customer service a big thing as its 3 years that you have to deal with them potentially. If customer service is important, you may have to suffer on the rate. Cheapest not always best