Is this a high interest rate?

deedum

Just looking for some advice regarding the only mortgage offer presented to us by our broker.

We are buying a house for £370,000 and have £100,000 deposit. I’m working for an agency and have only been in this job just over a month. Very good salary. No debts except husband’s student loan- £10,000.

My broker has said because mine isn’t a permanent job and that the letter given by the agency i work for does not give a fixed time period such as 6 month or 1 year contract, it would be difficult to find a lender for us.

The only lender for us charges 3.17% interest.

Does this sound reasonable?

A4445

Seems very high to me! However I’m not sure how you employment status affects your risk.

chunkytfg

Is your broker Whole of market?

somethingcorporate

Tracker? fixed? how long for? fees? ERCs? A single rate does not tell us very much....

getmore4less

Salaries?

For a 75%ltv that is high.

deedum

Yes, the broker is whole of market.

It is a fixed rate for 2 years.

I earn £62,000 and husband is on £12,800 pa.

He seems to think that because i work for an agency doing temporary work, it is difficult for us to get a better rate.

somethingcorporate

I'd say that's very high for a 2 year fix.



Worth getting a second opinion (plenty of brokers frequent this board, alas, I am not one of them).

Durham_andrew

I got a 75%LTV on a 5 year fixed for 2.14% if that helps

[Deleted User]

Magellan charge 3.14% for a 2 year fix @ 75%.

Not sure on their employment critiera compared to others, but they're manual with no credit scoring - so look more favourably on higher risk characteristics (hence the price).

Not saying it's a 'good' rate by any means, but 3.17% isn't appalling if your earnings aren't stable.

What's your history like with the agency/employment? (Gaps in last year/2 years etc) With such a high salary I'd imagine you'd qualify under 'specialist skillset' (i.e. if they get rid of you, you can easily go elsewhere for the same/similar income) so I'd be surprised if only 1 lender would consider you!

Would definitely seek a second opinion.

deedum

I have gotten in touch with L&C so will see how they respond.

It would not be difficult for me to get a permanent job or further temp work. I was doing temp work non agency last year and prior to that was in a permanent job for 18 months.

I will look for another broker too. Thanks all for your advice.

amnblog

Sounds like Saffron BS on their Contractor deal.

One month as an agency worker? You may well be lucky to have lending at all.

Perhaps, if you had an employed track record in a similar role previously there may be wider options. Not having a fixed term Contract does not help.

Probably right but the devil is in the detail.