Accord mortgages and broker issues

Haz29

So..
first thing the property is the perfect one for me and i really want it.
basically i had my offer accepted on property.
EA wont remove property off market unitil i have proven i can get mortgage. Which has been done as below
They wanted me to use their broker for this (free for me)
So i gave all my details and she said she will get me the best deals and just emailed me

“HI H***

I have a mortgage approved for you with Accord Mortgages and I have attached the illustration. It can be in your name only.

To be able to proceed further I need your solicitor details and also further documents in relation to the deposit.”

Thats just part of the email, sent me the full mortgage illustration attached too.
It is 2 yrs fixed 2.34% then svr 4.99

She didnt give me any other options this was probably the best in her eyes maybe


So basically i rang first Direct got AIP done on phone, sent my docs to them aswell and said i can get a mortgage and my AIP will be posted.

Now what do i do? I hear accord isnt great? Anyones used them here and can comment on them.
Total intrest payable is
£81000 on a £96000 mortgage
30 yr term
Do i go in and tell them i got AIP from first Direct and i want to see what they can do before i go with yours?
But saying this they wont remove from market i dont think, even though they know i can afford it after approving it themselves , and am going on holiday on Thursday for 2 weeks i have to take that into consideration too.

Dont know why the EA is so awkward:mad::mad:

Westminster

This is your biggest ever financial decision so taking unregulated anonymous advice onnacant information is possibly less than ideal.

How about you find yourself an independent mortgage broker and put your 3 (main) current credit files infront of them and see what they come up with.

EAs are commission based and will get a kickback if you use the in-house broker.

Get your mortgage offer (and broker details if you use one) and solicitor details to them in writing and again ask for the property to be removed from the market.

Haz29

To be fair after a lot of research they are offering me more money than other lenders with a 30 year term
Other lenders are offering less money and 37years term..

ACG

I have a mortgage approved for you with Accord (no they dont, a Mortgage approved is a full mortgage offer and you are some way from that yet) Mortgages and I have attached the illustration. It can be in your name only.

To be able to proceed further I need your solicitor details and also further documents in relation to the deposit.”

Thats just part of the email, sent me the full mortgage illustration attached too.
It is 2 yrs fixed 2.34% then svr 4.99

She didnt give me any other options this was probably the best in her eyes maybe (did you have a discussion about what you wanted from your Mortgage? ie 2 year fix/longer fix/cheapest/quickest etc?)

You have an AIP, infact you have 2 (although they may only know about one of them), I would be telling them that you want it removed from the market now you have an AIP before you start spending money on valuation and legal fees etc.

Haz29

Im actually considering the accord mortgages on as the term is 30yrs.
With other ones i have tried ybs 35yrs, halifax 37yrs
30yrs sounds better to me? Meaning i would pay less intrest is that correct?

I have phone app with first direct on tuesday so i will see what they say first. But i got a feeling their term will be amongst the higher ones

ACG

You can overpay on a Mortgage usually so there is a good chance you could agree a 37 year term but up the payments to equivalent of a 30 year term and end up in the same position - albeit in a roundabout way.

Haz29

Yes but if its beginning with a 37 year term and they are lending me 6k less and 7years more in term makes me think that it will cost a lot more in long run.
I do plan to overpay and hopefully reduce it by 40%

Haz29

Can i get fixed rate after every 2 years

[Deleted User]

Sounds like you haven't had great advise - Accord generally aren't the 'go-to' lender unless you've had prior problems or need flexibility (e.g. income multiples).

The fact First Direct have given you an AIP suggests you have more options.

Do you have ANY bad credit (ever been Bankrupt or in an IVA, DRO or similar? Ever had a CCJ? Missed any payments?)?

I'd repeat the above and go to an independent broker.

What it costs you over the long term (81k on 96k mortgage etc) is fairly useless info - pretty rare for anyone to stay with the same lender for the term. Look at what it costs you over the fixed term (2 years, 3 years, 5 years) and whether you'd be able to remortgage (e.g. are you only just scrapping into getting a mortgage? That could cause you problems if the market deteriorates).

If, objectively speaking, it's well within affordability and likely to remain that way, focus more on the next few years than overall

Overall term (30 years, 35 years) is also pretty irrelevant unless it will take you into or near retirement age and you don't intend to remortgage (remember, most people do).

Longer term = lower repayments to start with, possibly a good thing depending on your situation and bearing in mind you'll have legal fees, any renovations etc etc.

If you're really stretched on affordability but salary/circumstances are likely to improve then a longer term to start with is potentially worthwhile - you need a Mortgage Advisor to explain all these to you.

It sounds like, as suggested above, you haven't even had a discussion on what you want? Do you want a fixed payment for 2, 3, 5 or 10 years? Could you afford it if interest rates rocketed? If not, then a fix is likely to be an option given brexit etc (I read most mortgages are on fixed-rate these days).

Whether you can get a fixed-rate deal in X years is hard to say - have you read about "Mortgage prisoners" - people that got mortgages in 2007-2009 and now can't remortgage - rules have tightened, goalposts move, they now aren't being touched with a bargepole so are stuck with what they took then (whether there is a better deal available now or not). In 2 years time, interest rates could be 6% and you may not want to fix (incredibly unlikely, but you never know).

I'd urgently see a non-Estate Agency mortgage broker (preferably fee-free if your mortgage is only 96k, or you only pay fee on exchange/legal completion). Take details of both your agreement in principles with you and all your credit files (clearscore.com (Equifax), noddle.co.uk (CallCredit/TransUnion), mse credit club (for your Experian one)) plus your income, overtime, bonuses etc etc.

Haz29

Thanks for the reply
I will see what first direct say to me
As i have tried quite a few lenders and because of my salary etc they wont lend the amount i need

Haz29

Also a other thing accord mortgages are offering a good rate ? 85% ltv 2.34 and £500 cashback upon completion?
Works out better than FD rate
Also their 80% ltv rates are better
I see why you are saying about independent broker but i have tried approximately 4 different lenders for AIP and they are just not lending the amount i require...
Thanks