Mortgage broker - ask me anything

K_S

bubby08 said:

Hi K_S

any thoughts, thank you much.

@bubby08 Apologies, I'm a bit confused by all your different questions and can't really comment any more usefully than I already have. I would recommend posting on the main forum, perhaps you will get more help there, good luck!

PawelK

Hello and thanks for this thread offering help.

I am a first time remortgagee and my current fixed deal ends at the end of October this year. My current lender Nationwide advised me I can start looking at options and their rates from early June.

Can you please tell me if from your experience, broker can often find a better deal than what current lender can offer in terms of product switch (when staying with them) or even new bank if I was to go directly with new lender? And also, how early I should start doing my research or engage with a broker?

Once I choose my option in early June, what is the most common practice if, say three months later, a better deal appears on the market, and I want to switch?

Many thanks.

K_S

PawelK said:

Hello and thanks for this thread offering help.

I am a first time remortgagee and my current fixed deal ends at the end of October this year. My current lender Nationwide advised me I can start looking at options and their rates from early June.

Can you please tell me if from your experience, broker can often find a better deal than what current lender can offer in terms of product switch (when staying with them) or even new bank if I was to go directly with new lender? And also, how early I should start doing my research or engage with a broker?

Once I choose my option in early June, what is the most common practice if, say three months later, a better deal appears on the market, and I want to switch?

Many thanks.

@pawelk Quick comments -

- with Nationwide, the PT (product transfer staying with the same lender) rates available to clients are usually the same whether direct or intermediary. In most cases they are very competitive and any saving from changing lenders is usually quite small. This is just a generalisation of course.

- depending on your outlook on rates, once you're inside the 6 month period to expiry, you could look at remortgage (changing lenders) options as most (not all) remo offers are valid for 6 months and compare it to the Nationwide PT rate that you can get. 

kee89

Not sure if this is the correct thread to ask this on, but here's hoping...

I accepted an offer on my house from an overseas investor. Estate agent explained that due to him being overseas (China I think), there might be a delay with sending money across for the sale. I asked how long a delay and she couldn't give me an answer. Does anyone know what sort of delay I'm looking at? Days, weeks, months? 

PawelK

K_S said:

PawelK said:

Hello and thanks for this thread offering help.

I am a first time remortgagee and my current fixed deal ends at the end of October this year. My current lender Nationwide advised me I can start looking at options and their rates from early June.

Can you please tell me if from your experience, broker can often find a better deal than what current lender can offer in terms of product switch (when staying with them) or even new bank if I was to go directly with new lender? And also, how early I should start doing my research or engage with a broker?

Once I choose my option in early June, what is the most common practice if, say three months later, a better deal appears on the market, and I want to switch?

Many thanks.

@pawelk Quick comments -

- with Nationwide, the PT (product transfer staying with the same lender) rates available to clients are usually the same whether direct or intermediary. In most cases they are very competitive and any saving from changing lenders is usually quite small. This is just a generalisation of course.

- depending on your outlook on rates, once you're inside the 6 month period to expiry, you could look at remortgage (changing lenders) options as most (not all) remo offers are valid for 6 months and compare it to the Nationwide PT rate that you can get. 

Thank you.

With regards to changing during my last six months, if I fix the rate with nationwide in June to start from 1st November but in between I find better option with someone else, can I change my mind or am I bound to the contract with no exit or paying a penalty? Similarly, if Nationwide's own offer gets better (I know both above scenarios are unlikely as rates are currently in the upward trajectory), would they allow me to change?

Exodi

Appreciate you guys doing this - please may you help me also?

I had a 5 year fixed mortgage with Nationwide for about £200k at 1.99% which expires in June 2024

Part way through this I broke up with my partner (typical), and got a 'Further Advance' to buy her out (I believe Nationwide call it 'Borrow More') for about £50k at 3.24% which expires in Jan 2023.

So my two questions -

1) Can you 're-mortgage' a further advance? If so, would lenders be OK with charges from multiple parties or would I be tied to Nationwide? I'm feel they wouldn't have any incentive to allow a re-mortgage.

2) The timelines are awkward - ideally I'd like a plan to be able to re-mortgage these into one product as soon as is practical - what would you recommend? If I can re-mortgage the further advance, should I do a tracker with no ERC's? I believe Nationwides SVR is currently 3.99% so if I can't remortgage - I guess it wouldn't be the end of the world to go from 3.24 > 3.99% for 1.5 years until I can remortgage them together.

Hopefully I make sense - thanks in advance!

K_S

PawelK said:

K_S said:

PawelK said:

Hello and thanks for this thread offering help.

I am a first time remortgagee and my current fixed deal ends at the end of October this year. My current lender Nationwide advised me I can start looking at options and their rates from early June.

Can you please tell me if from your experience, broker can often find a better deal than what current lender can offer in terms of product switch (when staying with them) or even new bank if I was to go directly with new lender? And also, how early I should start doing my research or engage with a broker?

Once I choose my option in early June, what is the most common practice if, say three months later, a better deal appears on the market, and I want to switch?

Many thanks.

@pawelk Quick comments -

- with Nationwide, the PT (product transfer staying with the same lender) rates available to clients are usually the same whether direct or intermediary. In most cases they are very competitive and any saving from changing lenders is usually quite small. This is just a generalisation of course.

- depending on your outlook on rates, once you're inside the 6 month period to expiry, you could look at remortgage (changing lenders) options as most (not all) remo offers are valid for 6 months and compare it to the Nationwide PT rate that you can get. 

Thank you.

With regards to changing during my last six months, if I fix the rate with nationwide in June to start from 1st November but in between I find better option with someone else, can I change my mind or am I bound to the contract with no exit or paying a penalty? Similarly, if Nationwide's own offer gets better (I know both above scenarios are unlikely as rates are currently in the upward trajectory), would they allow me to change?

@pawelk Kindly note that all my comments below are in relation to intermediary PT processes, I don't know how they work direct.

- Yes, if you want to remortgage away to another lender, you can cancel the PT before it kicks in. As long as you haven't paid any non-refundable fees upfront, there should be no financial commitment involved.

- Yes, subject to there being sufficient time (off of the top of my head I think it's about a week or two) before the booked in switch kicks in.

K_S

Exodi said:

Appreciate you guys doing this - please may you help me also?

I had a 5 year fixed mortgage with Nationwide for about £200k at 1.99% which expires in June 2024

Part way through this I broke up with my partner (typical), and got a 'Further Advance' to buy her out (I believe Nationwide call it 'Borrow More') for about £50k at 3.24% which expires in Jan 2023.

So my two questions -

1) Can you 're-mortgage' a further advance? If so, would lenders be OK with charges from multiple parties or would I be tied to Nationwide? I'm feel they wouldn't have any incentive to allow a re-mortgage.

2) The timelines are awkward - ideally I'd like a plan to be able to re-mortgage these into one product as soon as is practical - what would you recommend? If I can re-mortgage the further advance, should I do a tracker with no ERC's? I believe Nationwides SVR is currently 3.99% so if I can't remortgage - I guess it wouldn't be the end of the world to go from 3.24 > 3.99% for 1.5 years until I can remortgage them together.

Hopefully I make sense - thanks in advance!

@exodi Keeping in mind that a 'remortgage' involves changing lenders and a 'product-switch'/'product-transfer'/'rate-switch' involves changing products but staying with the same lender -

1) You can't remortgage just the further-advance part of the mortgage, it would have to be both parts (main plus further advance). You could do a product-switch and pick a new product with Nationwide, they won't have any issue with that.

2) I can't recommend or advise you on what exactly to do. A no-fee no-ERC tracker might make sense given the scenario, of course with the con that the rate would be variable.

xfaze

K_S said:

xfaze said:

should i receive a confirmation email when a mortgage advisor applied for it?
even if he applied with a different bank than i am with.

@xfaze Depends on the lender. A few lenders will send out automatic notification emails to clients at different stages for intermediary (broker) applications, most will not.

As good practice, most brokers will drop the client an email confirming that the application is in and what to expect next, rough timelines etc.

Was just wondering because broker did not inform me anything with the email.
Only received a phone call from him, he just told me that we got declined with a poor credit score and now we have to take a mortgage with different bank which is more expensive p/m.
is there a way to find out? i mean could i contact the bank and ask them?

K_S

xfaze said:

K_S said:

xfaze said:

should i receive a confirmation email when a mortgage advisor applied for it?
even if he applied with a different bank than i am with.

@xfaze Depends on the lender. A few lenders will send out automatic notification emails to clients at different stages for intermediary (broker) applications, most will not.

As good practice, most brokers will drop the client an email confirming that the application is in and what to expect next, rough timelines etc.

Was just wondering because broker did not inform me anything with the email.
Only received a phone call from him, he just told me that we got declined with a poor credit score and now we have to take a mortgage with different bank which is more expensive p/m.
is there a way to find out? i mean could i contact the bank and ask them?

@xfaze You could of course call the lender and ask. They might point you back to the broker or answer your question.

There's really no reason for the broker to lie about a decline. The proc-fee from most residential lenders is within a very small range (around 0.35-0.4% of the loan size) so unless your loan size is huge, there's not much to gain by pointing a client towards a different lender and a lot to lose if it were to result in a complaint.

Having said that, if you're talking about a rate move from the likes of NatWest/Halifax to Bluestone/Vida, then it may be worth getting a second opinion.