Advise on brokers advise

jonnyb1978

Just been to see a mortgage broker for advice on a mortgage.
Im not sure what to think.

Based on details i gave he found.

176k mortgage on a £220k property. 80% LTV

Accord Mortgage 2 year fixed deal @ 2.64 = £802 a month then onto 5.99% = £1106 a month thereafter. £345 arrangment fee and free valuation.. ..thats a whopping £324k total payment.

Going on our existing lender i can get.

2 year fixed deal @ 2.79 = £816 a month then onto 3.99 = £919 a month thereafter. Booking fee of £999 included and a valuation on top.

Now to me the second one looks the better deal but is the broker going on the first 2 years on the assumption of remortgaging as i do not understand how he has reccomended this as an overall product. He also stated he could not advise on a more expensive product..

Any mortgage guys out there could advise please

ACG

Yes as it would be reviewed at the end of the 2 years and you would look at what the best deal is at the time.

Personally I wouldnt touch that bunch of amateurs in a month of sundays (accord). They are more hassle than they are worth.
However as a customer you would be about £1000 over the 2 years better off.

Assuming you are not stuck with accord (because of bad credit/property values crumbling etc) then its not a bad deal.

tvfreek

This transaction does not appear to be in your long term interest.

What if you are unable to remortgage in 2 years time and then stuck on a rate which is 2% more than your current lender's SVR.

Your thoughts are correct.
I have never recommended Accord - who wants a chance of paying 6% when it could be 4%

jonnyb1978

Thanks.. It seems accord are the best deal over the 2 years but after reading other comments from what ACG says, the reviews are terrible.

I have been looking deals myself.

Coventry 2 year fix @ 2.79% with up front cost of £199 and free valuation. Works out slightly more expensive but i would rather pay a bit more in getting a hassle free transaction and good customer service etc. They seem to have good reviews and are quick at processing..im assuming we have a straight forward application.

So my question is in reference to the original post where the broker stated he could not reccommend a more expensive product to one that he has found....Can i ask him to look for others as i dont like the sound of accord? or would i be better just going direct.
Thanks

lindens

my broker came up with the exact same 2 deals and we have gone with Coventry as its more hassle-free

Thrugelmir

jonnyb1978 wrote: »

Thanks.. It seems accord are the best deal over the 2 years but after reading other comments from what ACG says, the reviews are terrible.

I have been looking deals myself.

Coventry 2 year fix @ 2.79% with up front cost of £199 and free valuation. Works out slightly more expensive but i would rather pay a bit more in getting a hassle free transaction and good customer service etc. They seem to have good reviews and are quick at processing..im assuming we have a straight forward application.

So my question is in reference to the original post where the broker stated he could not reccommend a more expensive product to one that he has found....Can i ask him to look for others as i dont like the sound of accord? or would i be better just going direct.
Thanks

Why the preference for 2 years?

jonnyb1978

Thrugelmir wrote: »

Why the preference for 2 years?

There isn't one really. I personally was looking at 3 years. Broker mentioned 2 years to me. I'm assuming as interest rates will start to rise soon and will be continuing to rise come 2 years enabling to lock in another deal.

For a 2 year I was looking at possibly overpaying at least £50 a month. Not much I know but I do say at least.

Let_Us_See

jonnyb1978 wrote: »

There isn't one really. I personally was looking at 3 years. Broker mentioned 2 years to me. I'm assuming as interest rates will start to rise soon and will be continuing to rise come 2 years enabling to lock in another deal.

You clearly have no term strategy. Did you ask why broker mentioned 2 years?

jonnyb1978

He just said it was the most common term.

I'm just looking for a cheap mortgage, that can hopefully be paid off quicker that the 25 year term. I have a budget of around £900 a month, hence a cheaper deal I can overpay slightly.

So as far as term strategy your quite right.