Mortgage Advice

alansmith7

Hi

Im considering switching my mortgage as the current deal for my mortgage will be up for renewal in march 2014. I wanted to know should i approach the banks or go to a independent mortgage advisor?

I have approached money know how and i wanted to know if anyone has deal with money know how before?

Thanks

Let_Us_See

Approach both. Check what your bank is willing to provide and then contact probable for optional schemes.

alansmith7

Let_Us_See wrote: »

Approach both. Check what your bank is willing to provide and then contact probable for optional schemes.

thats what i thought but i didnt want the banks and brokers to do too many searches on my name because it may affect my credit report

kingstreet

Ask your current lender about its customer retention products - no search and no new status requirements if you are not increasing the mortgage.

Brokers will look at all the products which pay commission, if you hire them on a "whole market" basis. Again, none will do a credit search until you have decided on the likely best product/lender.

Research direct lenders/products yourself. Tell them you do not want them doing a search, you are simply establishing the right product at that time.

Start in January, for an end March "completion" date.

alansmith7

kingstreet wrote: »

Ask your current lender about its customer retention products - no search and no new status requirements if you are not increasing the mortgage.

Brokers will look at all the products which pay commission, if you hire them on a "whole market" basis. Again, none will do a credit search until you have decided on the likely best product/lender.

Research direct lenders/products yourself. Tell them you do not want them doing a search, you are simply establishing the right product at that time.

Start in January, for an end March "completion" date.

i am looking to increase my mortgage to pay off my debts, i do prefer to say with my current lender which is santander. What is the likelihood of my existing lender increasing my mortgage?

kingstreet

That'#s a further advance, or additional borrowing. You'd need to discuss the possibility with your lender and much will depend on the purpose, but you will be vetted as if you're taking out a new mortgage, so any received benefit in being an existing borrower and being treated less severely is not real.

Get the best deal you can, from whoever will lend it, based on your circumstances.

alansmith7

kingstreet wrote: »

That'#s a further advance, or additional borrowing. You'd need to discuss the possibility with your lender and much will depend on the purpose, but you will be vetted as if you're taking out a new mortgage, so any received benefit in being an existing borrower and being treated less severely is not real.

Get the best deal you can, from whoever will lend it, based on your circumstances.

I have been told the banks may lend me more more money because i have got enough equity.

thats why i have started to look for a good deal for myself when my mortgage deal end date is in april 2014.

kingstreet

Income/affordability now determines how much you can borrow, with your equity, or the lower loan to value, determining the rate you'll be offered.

The days of self-cert and being able to borrow what you want because you only want a LTV of 50% are long gone.

In my last post I mistyped "received" instead of "perceived."

alansmith7

kingstreet wrote: »

Income/affordability now determines how much you can borrow, with your equity, or the lower loan to value, determining the rate you'll be offered.

The days of self-cert and being able to borrow what you want because you only want a LTV of 50% are long gone.

In my last post I mistyped "received" instead of "perceived."

trying to get a good mortgage deal is a headache

alansmith7

I have been offered fixed rate from santander for 3.9% for 3 years working out to £510.00 per month but they not willing to borrow me more even though my mortgage works out to be 65% of my house value. I have approached lloyd but for some reason they did a check on my name (they did not do the search on my name as i didnt want the application to affect my credit report) and the application has been rejected.

I wanted to borrow more money so i can pay off my debts and im not sure what to do now :-/

kingstreet

Find a whole market broker.

Debt consolidation is not well received by many lenders. Santander assumes you will simply re-borrow whatever you pay off, so often affordability is an issue.

If you want the best deal and the best chance of getting this placed, the broker is now your best option.