Direct Only Deals

Jodzz

Hi all

We're currently FTBs looking for a house and was wondering if someone could shed some light on direct only mortgages.

Looking for 85% LTV and I can see rates of around 1.9% are available to us on a 2-year fix and they are direct only deals. I've been to a broker, who obviously can't tell us about these deals (as they're direct only), and he is showing us rates of about 2.4%.

The broker is confident we will get the mortgages he is offering us, but how is anyone ever sure enough that they'll be accepted to apply for a direct only deal without a broker?

We're a pretty average case, no debt/loans/anything like that, good salary, good credit, only thing what could be perceived badly is OH has just finished his masters degree and has started (this month) his job which is a 24 month contract. However, he has done a 15 month paid placement with the company before.

Would you say this puts us in good enough stead to apply for a direct only mortgage to get a better deal or would you stick with a worse rate and go with a broker?

I don't think we have any recent credit checks on our file, so if we were declined for lower rate, would a second application with broker be a detrimental and a waste of time if we were to do it straight away?

Thrugelmir

Jodzz wrote: »

We're a pretty average case, no debt/loans/anything like that, good salary, good credit, only thing what could be perceived badly is OH has just finished his masters degree and has started (this month) his job which is a 24 month contract. However, he has done a 15 month paid placement with the company before.

As the contract is fixed term for 24 months then what's the likelihood of it being extended? Not just a question for the lender to consider but you too.

Jodzz

I would say the possibility is high as he has already worked there before and has been asked back for this higher ranked role, possibility of permanent role after too but most staff are on rolling 2 year contracts.

Not sure if lenders would take that into account, but here's hoping...

ACG

That contract is an issue.
If you do not go with the broker, ensure you check it with the lender before applying or doing any credit checks.

Jodzz

I have checked with a couple of lenders who say they don't necessarily not accept them but it would most likely be referred to the underwriters, but that still doesn't really give me any indication of the successes of it... I guess the sort of question I'm asking is how long is a piece of string....

betmunch

Jodzz wrote: »

I have checked with a couple of lenders who say they don't necessarily not accept them but it would most likely be referred to the underwriters, but that still doesn't really give me any indication of the successes of it... I guess the sort of question I'm asking is how long is a piece of string....

Do you want a maybe? Or an accept decision when you apply?

If you are happy with a maybe then crack on.

If you would prefer an accept and someone to take responsibility if the lender doesn't honour it then find a broker