Does my broker's advice make sense

24.princess

Hi there

I had an appointment with a broker today and it seemed to go well- but I am not 100% sure.

I have 2 defaults (registered 2009 and 2011) so I was aware that there would not be that many lenders prepared to look at this.

The only lender he talked about was Aldemore- and said he recommended I look at £120 k (on 160K purchase price) on a 5 year fix at 4.75%
He said that I could potentially borrow more if I opted out of salary sacrifice childcare scheme (but as I actually have to pay childcare this is going to make my ACTUAL affordability a bit dodgy)

He didn't talk about any other providers, just them?

What do people think? Does this sound like it's the best deal?

Many Thanks

GMS

How much were the defaults for? What dates? Are they satisfied and if so when?


Did you want a 5 year fix? Have you considered taking a fixed rate for 3 years which would allow your credit file to clean up and potentially access prime lenders?


No saying what rates will be in 3 years though. At least a 5 year fix would give security.

24.princess

One was for £280 - settled 2009
One was for £1120- although registered in 2011 was only settled in 2013 (my fault as I entered payment plan with provider not realising that it would continue to be defaulted until balance was settled)

I am not sure that I want a 5 year fix or not- it seems like a long time and obviously if I want to move or anything I would then have ERC's.

However, the broker seemed convinced that interest rates would rise (and suggested they may be at their highest in 2-3 yrs) and that I might then find it expensive to remortgage-- which does make sense. I am quite likely to NOT move in the next 5 yrs and so the security could be a good thing.