mortgage added freebies (gift cards, deductions etc.)

moneysavinglaura

Hi,
I've just had my offer accepted on a house and after some extensive googling discovered that mortgage comparisons are even more complicated when adding in gift card offers/ lenders paying conveyancing fees etc.

Can anyone share any deals they were offered? I'm a first time buyer with 15% deposit.

So far, Lloyds have offered to pay conveyancing (I think!) and Halifax offer a £500 gift card.

Thanks,
Laura

G_M

You'll need a spreadsheet to do a full comparison:

interest rate
monthly interest charge
annual interest charge
interest charge over life of mortgage
standard interest rate once intial deal expires
Conveyancing fees
application fee
valuation fee
redemption fees
etc (can't be bothered!)

all these will influence the overall cost to which you can deduct any perks offered

moneysavinglaura

No fear G_M! I have one already
It is just these extra hidden benefits I'm trying to add in... Just found out Nationwide give you a £500 cashback if you book direct! Pretty good!

moneysavinglaura

Though what is a redemption fee... More googling needed!
Unless it is an early exit fee?!

G_M

A redemption fee is the cost to pay off the mortgage (ie the admin and legal fees to get the Charge (mortgage) removed from the Land Registry.

Different lenders carge different amounts.

So this applies after 25 years, or if you pay it off earlier, then at that time. It also applies of course if you switch to a different lender at some point.

There may also be an Early Redemption fee/penalty, if you have, say, a 5 year fixed deal, and pay off the mortgage early (after 3 years). You might do this if you win the lottery, or decide to switch to another lender.

So if Nationwide BS are offering you £500 cashback compared to £300 cashback at Localwide BS, but Nationwides redemption fees are £300 more than Localwide's, you might decide to go with Localwide (especially if you think you might shop around/switch in, say, 5 years.)

It's a complex world!

househuntingmad

moneysavinglaura wrote: »

No fear G_M! I have one already
It is just these extra hidden benefits I'm trying to add in... Just found out Nationwide give you a £500 cashback if you book direct! Pretty good!

If you hold one of their particular current accounts, you also get free legals through them (or £250 back if you choose your own conveyancer) and free valuation.

moneysavinglaura

Do you have to pay a redemption fee even if your fixed period is over?

moneysavinglaura

Househuntingmad - is this on all their mortgages? Sounds good... Discovered that solicitors are rather expensive.

moneysavinglaura

I have created a pretty cool spreadsheet (by my standards).

It details special offers by lender and gives a costing for what each lender would charge for a 2 year fixed mortgage with bonuses included.

It is for a 275k house with 15% deposit.

It probably won't be any use to others, but thought I'd share anyway

https://drive.google.com/file/d/0B3K5hhA4oBlbUExRaGp5MFBtazQ/view?usp=sharing

marksoton

moneysavinglaura wrote: »

Just found out Nationwide give you a £500 cashback if you book direct! Pretty good!

You can still get this if you don't go direct, and may possibly get a better rate.

moneysavinglaura

I spoke to a broker yesterday and she didn't mention it.