Comparing mortgages - which figures matter?

Magda_Darcy

Our broker's proposed a few options, of which one is a clear winner. However, doing some additional research on MSE, there are other options (including available via a broker) which have slightly higher initial deals, but work out cheaper overall (by about £15K) due to having a lower SVR when this ends. Assuming that it is possible to switch mortgage after the initial deal ends, does this subsequent default rate actually matter (given also that it might change during the deal period)?

Think I've answered my own question here but just want to check I'm not missing anything .

AnotherJoe

Assuming that it is possible to switch mortgage after the initial deal ends

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That's a big assumption which is why it might matter. Let's say you are a couple and one of you gives up work / is out of work when the mortgage initial term ends.

You may not be able to get a new mortgage at that time on the new salary but should be able to move into the SVR of your current lender without any additional checks being made.

Lots of ifs buts and maybe's there though ��

kingstreet

Being unable to remortgage at the end of the initial offer period is justification for choosing a lender with a record of offering good retention deals, then one with a good SVR.

So I look for;-

good initial product rate/fees, good retention deal record and good SVR record for my clients;

then next is good initial rate/fees, good retention deal record and lousy SVR record.

As an example, Nationwide would normally be in the first group, Accord in the second.

Hence, no business for Accord in the last five years or so.