Mortgage broker - ask me anything

IAMIAM

When rate switching with HSBC, and you have two accounts. Could you end up paying two product fees or is it just one if done at the same time?

james_williamson_6544

thanks for the helpful thread:
mortgage value = 65000
lender = nationwide
current interest = 1.94% fixed rate ending 30/6 - meaning I can apply for rate switch in Feb which will take effect in April.
If I get a 4 year fix at 1.60%, using "original" overpayment allowance with Nationwide, I will be mortgage free by end of the term.
Benefit of staying with nationwide is I get 10% of original loan as overpayment allowance
Benefit of moving to a different lender is that I might get some cashback
However there is no 4 year product. So should I:
A - Take 2 year fix and then another 2 year fix with Nationwide.
B - Take a longer fix (3 year or 5 years) and then either pay ERC or standard variable rate on a smaller capital ?
C - Move away from Nationwide and get cashback 

Confused !!! Maybe I am counting pennies ?

Kernower

getmore4less said:

GKernower said:

K_S said:

Kernower said:

Hi,
Just a general query. It appears that my broker is offering me a deal that appears to be more expensive than what I could get directly off the lender’s website.
Is this a regular occurence with brokers?
Same lender, same advance, same term but 0.55% lower rate, £60 a month cheaper.
What benefits am I getting by going via the broker?
Thanks.

@kernower No. This most definitely is NOT a regular occurence with brokers. It's most likely a misunderstanding or not comparing like for like (eg: one product with fee and the other no fee, etc). If you can tell me what exactly are the two products that you are comparing, I might be able to throw some light on it.

Or else, just ask the broker the same question of why it looks like you get a significantly better deal going direct to the lender.

Thank you for the response.
Broker offered £160k over 18 yrs on a 5 yr fix from Nationwide with no lender fee (but a broker’s fee) at 1.99% for £882 a month with Nationwide.

Directly on Nationwide the same advance, period, fix with a lender fee comes to 1.44% and £841 a month.
Granted I would have to pay a lender’s fee of £999, but if I hadn’t gone via the Broker (who takes a fee also) I would have a mortgage that costs £1,400 less over the 5 yr period.  Both deals revert back to the same SVR.

I appreciate that the broker has searched the whole of market and believes that this os the best product, but I had presumed that the most appropriate deal would come from products that weren’t available directly to Joe Public.

Therefore, I presume that I could go with the lender directly but end up paying the product fee and the broker’s fee (as they’ve made a recommendation). Which still provides a saving on the overall cost of the mortgage.

Did you get sorted?
That 1.99%  is £3k more expensive than the  1.44% fee based for the same payment.

Using the monthly costs + fee gives a very misleading result if you got that as £1,400.

At the end of the 5years you owe ~£3k less
£160k 1.99% £882pm £121,130
£161k 1.44% £882pm £118,174

Nationwide came out with a 1.39% deal after this. If I recall my £1,300 was after allowing for the fees payable.  Looks like we got it sorted, but it feels a hollow victory getting a deal that I could have secured with the Nationwide directly and had to pay a broker fee.

K_S

james_williamson_6544 said:

thanks for the helpful thread:
mortgage value = 65000
lender = nationwide
current interest = 1.94% fixed rate ending 30/6 - meaning I can apply for rate switch in Feb which will take effect in April.
If I get a 4 year fix at 1.60%, using "original" overpayment allowance with Nationwide, I will be mortgage free by end of the term.
Benefit of staying with nationwide is I get 10% of original loan as overpayment allowance
Benefit of moving to a different lender is that I might get some cashback
However there is no 4 year product. So should I:
A - Take 2 year fix and then another 2 year fix with Nationwide.
B - Take a longer fix (3 year or 5 years) and then either pay ERC or standard variable rate on a smaller capital ?
C - Move away from Nationwide and get cashback 

Confused !!! Maybe I am counting pennies ?

@james_williamson_6544 There isn't eough detail to say. But with a relatively small mortgage of 65k at low-LTV, as a Nationwide customer your best option is more likely than not to be a rate-switch staying with Nationwide. They are one of the very few mainstream lenders to offer no-fee no-ERC trackers at multiple LTV bands so that may be an option as well if you want to make unlimited overpayments.

Any cashback that you get from a remortgage lender will more than likely be chewed up by the costs associated with remortgaging (conveyancing primarily).

Dazzie

I have received the following text from Nationwide Hi, Nationwide here. Good news, we've reserved the mortgage product(s) you've asked for. We'll be in touch as your application progresses. Does this mean the full application has been submitted?
many thanks 

K_S

Dazzie said:

I have received the following text from Nationwide Hi, Nationwide here. Good news, we've reserved the mortgage product(s) you've asked for. We'll be in touch as your application progresses. Does this mean the full application has been submitted?
many thanks 

@dazzie That's correct.

clareybob

Hi, lm new to this site and just wanted a bit of advice on getting a mortgage. l currently work and live in wigan. l live with my mum so i have no real expenditure and i have a 65% deposit for the house i would like to buy.. My problem is the house i would like to buy is in county durham so i would have to give up my job and find a new one in durham.. My question is if i was to apply for a mortgage while i still work in wigan would i be refused by lenders knowing i would have to change jobs once living in durham??
Thanks 

K_S

@clareybob Unless it's plausible that you can continue in the same role while living in Durham, lenders generally do not like such a scenario for a residential purchase.

Harry1986

Hi 
We bought our house with HelptoBuy in 2016 @ 5 year fixed which finishes in March 2021.
Paid of 20% by borrowing more in 2019, so which made another partial part-2 mortgage which finishes in July 2021.
If i move complete mortgage as re-mortgage with another lender makes me pay £1150  early termination charges.
If i mortgage with Halifax under new deal it will continue as split mortgage forever and have a rate of 1.8 for 3 year fixe
what to do 

K_S

Harry1986 said:

Hi 
We bought our house with HelptoBuy in 2016 @ 5 year fixed which finishes in March 2021.
Paid of 20% by borrowing more in 2019, so which made another partial part-2 mortgage which finishes in July 2021.
If i move complete mortgage as re-mortgage with another lender makes me pay £1150  early termination charges.
If i mortgage with Halifax under new deal it will continue as split mortgage forever and have a rate of 1.8 for 3 year fixe
what to do 

@harry1986 Can't give you a defnitive answer but you need to do the sums and see what works best based on what you want to do.

Remortgaging to a new lender will mean a few (at least 4) months of SVR for the larger loan part.

If you want to stay with Halifax but align the end-dates for the two parts, it'll again mean a few months (at least 2) months on SVR for the larger loan part.