Not sure if misled by broker

[Deleted User]

Hsbc use retained profit as well and are usually cheaper than Virgin. As do Barclays I believe who are usually cheaper than virgin.

It sounds like using a lender that does retained profit was the right thing, find out why virgin though as they are rarely near the top of best rates imln my experience. Maybe they were this time, I just haven't given them a case in about 3 years so always surprised when they source well

Dphotod

Thanks will do.

Obviously I’m stuck for now and I doubt remortgaging early would be worth coughing up 8/9k to switch policies to save about 120 quid a month. (On some quick math)
Aim is to overpay mortgage 3k or so a year to beat interest costs and that’ll have to do until I can remortgage I guess!

If anyone thinks would be worth talking to someone re switching please do let me know.

D

ACG

I have only scanned through this post but I do not think you have been misled by your broker. It looks like PAYE & Divs would not have passed affordability. There may be a few more options than Virgin & Clydesdale who will accept PAYE & Net Profit but your broker may have disregarded those on cost. It could also be that your broker did not have access to those lenders or slightly worse or they were not aware of the PAYE & Net profit options they have.

My Mortgage is with Virgin, not because of PAYE & Net profit but because they were the cheapest lender at the time of application. When it came to remortgaging they were about 0.5% off the best buys but my circumstances had changed to the point where I could not really go elsewhere.

Virgin are rarely the cheapest but they are also rarely miles off the best buys, it is unlikely you will be significantly worse off being with Virgin over any other lender, but your options will be limited to some extent if you are reliant on paye and net profit.

csgohan4

Was your broker from Estate Agents?

Deals change all the time as above mentioned, Depends on what was available all the time.

Also brokers also recommend deals which are easier for underwriting but slightly more interest and those with the best interest rate but takes longer. It's a balance.

Also a limited company myself and chose the easier underwriting method and slightly higher interest rate. Never looked back, Broke explained this to me in full and I made the decision.

I presume you were happy with your deal at the time and did your own reserach of the best buys at the time?

kingstreet

I am the Director of my own Ltd Company, and currently am on a 5 year fixed term, 35 year mortgage at 2.02% (loan taken on last year in July)

A friend with a very similar LTV (we are both about 65%) was advised the opposite by his broker - that many do this with no issue, and has a mortgage with Leeds BS at 1.37%.

No lender, certainly not Leeds, is doing/has done a five year fixed at 1.37% and your five year fixed is at 2.02% so I suspect you need to compare like with like before you start adding the salary and dividends and salary and net profit complication...

Did you want a two year fix, or a five year fix?

Mortgage_Adviser

One other thing. How many lenders did you broker have access to?
It is not one of those estate agent ones who only have dozen on their panel as opposed to the propert whole of market who would have circa 100 lenders?