Some quick mortgage Qs from a FTB

marksoton

kingstreet wrote: »

Bargepole job!

5.54% standard variable if they won't give you a retention product or if you are a mortgage prisoner unable to remortgage elsewhere due to a change of circumstances.

Nationwide is £7.25 a month more expensive but SVR is 3.74%, has a commitment to always offer products as good to existing borrowers as it does to new borrowers.

32 years and counting and never done business with Accord.

Not recommending OP uses any lender, merely providing points of comparison when only initial/short-term cost is considered in selecting a mortgage/lender.

Brilliant spot. And just goes to show you need to look past the headline figures.

Dird

kingstreet wrote: »

5.54% standard variable if they won't give you a retention product or if you are a mortgage prisoner unable to remortgage elsewhere due to a change of circumstances.

But presumably they're variable in nature so in 2 years Accord could be 3.5% SVR~
Not sure how many people choose based on a worst case scenario rather than cheapest fixed period costs for anything e.g. gas, broadband, mortgage provider. My sister was refused a phone contract so presumably she could be refused a fixed broadband package also (I assume they credit check)?

ravsd

Why are you avoiding the use of a broker? Out of curiosity?

They can take the legwork out of it and find a good deal for you

Dird

ravsd wrote: »

They can take the legwork out of it and find a good deal for you

The leg work of 1 MSE comparison search? 2 incomes, no dependents & low borrowing vs income...if they want to avoid £1k application fees due to the small mortgage then they'll want to avoid the £1k broker fee for a seemingly straight forward application.

kingstreet

Dird wrote: »

But presumably they're variable in nature so in 2 years Accord could be 3.5% SVR~
Not sure how many people choose based on a worst case scenario rather than cheapest fixed period costs

I did take your name off the quote as I didn't want to suggest it was an attack on you. It wasn't. It was a general market view of a lender from someone who uses (and avoids) different lenders for different reasons.

That differential has been there since YBS launched Accord and Accord's SVR is higher than YBS which is also at the higher end of the market.

As a broker, I have to cover such issues and can't just lump everything on red - the first two years of a twenty-five years mortgage, or longer, and ignore what happens after that.

We tend to find if we give the applicant a choice, save 0.1% or 0.2% now, or build-in some future planning they will opt for the latter.

I can't speak for others, but our broker fee is £250. If you buy from one of our builders, it's £0.

AnotherJoe

chamelious wrote: »

Thanks. I haven't yet come across a mortgage that offers cashback.

Maybe that's because you arent using a broker?

FWIW you said "i'm trying to avoid using a broker to save some pennies" but a relative of mine used one and there was no fee. Not all brokers charge fees.

Dird

kingstreet wrote: »

I did take your name off the quote as I didn't want to suggest it was an attack on you.

Don't see why you would o_O I'm with YBS & have/had no idea what their SVR is, I imagine it's the same for most people on fixed rates

wantonnoodle

Dird wrote: »

The leg work of 1 MSE comparison search? 2 incomes, no dependents & low borrowing vs income...if they want to avoid £1k application fees due to the small mortgage then they'll want to avoid the £1k broker fee for a seemingly straight forward application.

AnotherJoe wrote: »

Maybe that's because you arent using a broker?

FWIW you said "i'm trying to avoid using a broker to save some pennies" but a relative of mine used one and there was no fee. Not all brokers charge fees.

Indeed - our broker does not charge a fee, instead charging commission to the lender. He's been great, and does so much more than just arrange the mortgage for us. He's assisting us find our way through the survey requirements from our lender and is helping us in negotiations with the vendor. His expertise goes beyond just selling us a mortgage. And our mortgage includes £1000 cashback on completion (if we get that far).

kingstreet

Dird wrote: »

Don't see why you would o_O I'm with YBS & have/had no idea what their SVR is, I imagine it's the same for most people on fixed rates

What happens if YBS stop offering customer retention products and you can't remortgage elsewhere?

Mortgage prisoners didn't know they were going to be mortgage prisoners when they took out their mortgage, but with a bit of future-planning, they could make life easier should the worst happen.

I'm not suggesting it should be the be-all and end-all of mortgage product selection, but SVR and attitude to customer retention should be up there with rate, fees and penalties IMHO.

I would consider myself negligent if I didn't compare products and explain the differences. For the record, Accord pays us 0.345% for a standard residential mortgage while Nationwide pays 0.33% so we are worse-off by doing what we do...

As I mention a lot when we get into the broker v direct stuff, only about 1% of the job is about rates. It's mostly about criteria and lending power and fitting lenders to applicant circumstances. The "vanilla" brigade will usually be better off with the likes of HSBC and YBS and don't need us.