Morgagte application with Lloyds

Busymom86

Hi,
We are about to put our house on the market and have just had a meeting with Lloyds about a new mortgage.
Our current mortgage is with them and is for £85000 at 2.5% standard variable rate. They said we could borrow the rest and port this over.

We would be looking to buy at £180000, we probably won't have the full 10% deposit, we should have about £15000 so we will be in the 5% deposit rate which they quoted as 5.56%. She showed us the sums and it worked at about £820 a month which is £420 more than we pay now.

My husbands income is £48,000 plus overtime and he just has a loan for £5000 ending next dec. his credit is execellent no missed payments apart from in feb I forgot to pay his cc that we use for buying fuel. I payed it immediately once we found out and it isn't listed on noodle or experian. Other than that there isn't one red mark or missed payment listed at all.

After bills and everything we have about £1000 spare per month so it seems affordable.

My questions are -

This seems like a good deal, is it worth us seeing a broker, I can't see us getting a better deal anywhere else.

If this missed payment isn't listed on the credit reports does that mean it won't be picked up on the application, it was with a different bank.?

The advisor wouldn't say weather she thought we would be accepted until she had ran the credit check which I guess is fair but I'm worried about applying and getting rejected and then affecting us negatively!

Any comments or advice would be greatly received.

DebtFree14_2

Guys

Think about what you are doing. You are making there biggest purchase of your life and are asking wether it is worth while seeing a broker???

Would you buy a car with out shopping around?
would you do internet shopping with only one retailer without googling first?

Of course you need to see a broker. Bank deals are notoriously bad. A broker can shop whole of market for 10's of mortgages not just 3 that the bank offers.

You can also help yourself online and look at various websites for comparison

Gonzo33

I would see a broker just to ensure that you are getting the best deal for you.

When you go take your credit reports with you.

Busymom86

Thank you for your reply. I have done some research online and have calculated that to get a new mortgage we would need a rate of 4.25 to be paying what they have offered. I can't see any 95% mortgages online for less than 4.75. These all seem to short fixes too leaving future rates questionable. Our 2.5% rate I'd capped at 2% the base rate for the remainder of the mortgage.
A mortgage advisor from matwest )who we bank with ) actually advised us to speak to lloyds as the 2.5% is so good for our position.

Busymom86

Thank you Gonzo, with regards to the late payment would you think this would be ok as it isn't listed on the credit reports? Thank you!

kingstreet

You mean it isn't on the files you've obtained.

Until you obtain the Equifax version, you don't know if it's visible or not.

I can't speak for Lloyds as C&G stopped taking business from brokers years ago, but Halifax uses Equifax for its mortgage applications in the first instance.

Busymom86

Thank you, I just checked Equifax and they didn't list it either. Phew.

Thrugelmir

In the future you may find it hard to better the guaranteed 2% above base that you are porting. Though be prepared for an increase in interest rates at some point in the not to distant future.