RBS Mortgage: 5-year Fix 2.19%, £995 Fee

TCA

Having just got 2 years of SA302s for self-employment, I visited my own bank today (RBS) as a first port of call, to see what they could lend me as a customer of 24 years. I've been given a decision in principle based on the criteria below and am wondering whether there's any point to trying a broker for a better deal.

They averaged my self-employment earnings and dividend income over the last 2 years and took note of my savings elsewhere from which I can and will pay a 40% deposit to get the best interest rate possible. i.e. a 60% LTV mortgage (or less).

In tandem with a soft credit check and my bank and credit card records for 24 years, they are (in principle) able to lend me what works out as a multiple of 4.6 of my average annual income (over 2 years). This is over 18 years, given my age, but I would likely plan to repay the mortgage in full after making use of a fixed rate for a period of perhaps 5 years.

RBS are offering a 5-year fix at 2.19% with a £995 fee and 2.78% for the same period with no fee. The fee can be added to the mortgage and from my calculations that looks the better option and I like the look of it.

http://www.rbs.co.uk/personal/mortgages/g2/view-product.ashx?id=fix10159

So my question is: given my short self-employment record and the fact that RBS have a better knowledge of my (good) banking history than any other lender, is it likely that I'd be able to get better deals elsewhere via a broker for the kind of mortgage I'm after?

Thanks for any assistance.

dimbo61

You give lots of info except how much you want to borrow!
Now putting down a 40% deposit is great and 60% LTV is also good but without knowing how much you want to borrow the good brokers on here will not know if another lender has a better deal

TCA

Thanks for the reply. I probably gave too much info and maybe didn't need to mention the specific mortgage product, as it wasn't specifically just the deal I was interested in.

Basically I wanted an idea as to whether it was likely that a broker could find me a lender willing to give a single applicant more than the 4.6 x earnings multiple that RBS arrived at based on an average of the (only) two years income figures I have and an assessment of affordability given my expenditure. That multiple seems pretty high to me.

e.g. If most lenders offer a maximum multiple of 4x earnings and ask for 3 years SA302s (which I don't have), then it might not be worth going to the bother of engaging a broker.

I appreciate all lenders work differently, so just after a rough steer as to the lending criteria of the majority.