MA picked a different lender

TranceNRG

Hi guys,
Just after your opinion on this:

I am an Australian citizen on a tier 2 work visa and I'll be eligible for permanent residency in 3 years (work visa valid for 4 years).

I recently got an AIP with Natwest for 290K with a 75% LTV. We were thinking of either a 2 or 3 year fixed term mortgage.

I made an offer on a property yesterday and it was accepted so we are going with the full mortgage application. However my MA rang earlier and said he'd talked to Natwest's underwriters, they want me to put down a higher deposit to make it 70% in order to borrow 290K.
Apparently he's looked at other options and picked Halifax's 2 year fixed rate mortgage. Their 2 year fixed rate is 1.89% which is only slightly more than Natwest's (1.88%) so I'm OK with that. However Halifax's valuation fee seems to be about 200 pounds more expensive also there's a Mortgage account fee of £295. Not sure if Natwest charges this fee?

MY MA sent the KFI earlier for the Halifax product and it highlighted the amount the commission my MA was getting from Halifax. I have no idea what he would have got from Natwest.

I just thought it was a bit strange of Natwest to ask for a higher deposit after I had the AIP from them only a week ago for 75% LTV.

Is it possible that MA picked Halifax because he's getting more commission from Halifax than Natwest? Or is the commission similar for all lenders?

cheers.

ACG

Natwest do require a 30% deposit in this situation. I have had 2 enquiries recently.

I dont mean this the way it will read, but there could be mortgages out there that charge 0.01% and £20 fees, if your not eligible for it then it doesnt matter. You have to look at what you are eligible for and forget the rest.

TranceNRG

Thanks ACG. I totally agree that you have to pick one that's available. I just thought it was a bit odd that after getting the AIP with Natwest, MA advised me that unless I had a higher deposit, they were no longer an option.
Just wanted to make sure MA is picking a product that is suitable for me and not the one that gives him the biggest commission.

I guess AIPs are not a reliable measure as to whether you can borrow or how much you can borrow?

Leon_W

They pay about the same so there is no issue there.


Halifax are (in my view) probably more lenient in a situation such as yours. It sounds like your broker is doing a good job.


As an aside. Your paying £300K+ for a property and quibbling about the valuation fee being a couple of hundred quid more expensive ??????? Really ?

TranceNRG

Leon I'm not worried about the small extra charge + increase in interest rates but whether the MA was picking the right product for me. I wasn't aware that Natwest needed a 70% LTV in my situation. Bit silly that they would give me an AIP based on 75% LTV though.

Edit - I do think my MA has done a good job so far and I'm glad to give him my business but what I've learnt from the whole buying a property process is that not to trust anyone 100%.

amnblog

Nat west restrict loan to value for applicants without permanent right to reside, your broker simply missed that by the sound of it.

Sane mortgage brokers simply do not recommend lenders on the basis of fees received.

ACG

The fact you have a visa would never have come up at DIP/AIP stage. Your broker should really have checked before doing the DIP.

amnblog

BTW the broker would probably have received about £58 more with Nat West.

TranceNRG

Anyway I'm satisfied my MA has picked the right product for me

He may have missed the bit about 70% LTV with Natwest for work visa holders, when doing the AIP. But we all make mistakes and I've been happy with the advice I've received from him not only for the mortgage but the buying process.

Thanks everyone. Appreciate the input.

TranceNRG

I believe my MA submitted the application tonight. When can we expect the survey to happen?

Also for whatever reason if the survey comes back with a much lower valuation than the purchase price (387K), are we allowed to dispute that? (I think the flat is worth around 400K personally).

amnblog

You are allowed to dispute a valuation - it won't get you anywhere.

I always find it baffling if a buyer wants to confirm a higher value than that acheived rather than use it to try for a price reduction.