Scottish widows professional mortgage with offset, or something else?

anticlaus105

Our fixed rate ends 31st Mar 21 and unless a deal like Atom bank 5 year fix no fee at 1.34% reappears I'm interested in a Scottish widows professional mortgage with offset. I see they offer a 5yr fix 1.40% no fee with offset. Our current mortgage is with NatWest and we applied direct (tried a local independent broker first but it didn't go well). Current LTV 42% with just over £118k balance.

How is the best way to apply with Scottish widows? Website advises: "Our mortgages are exclusively available through independent mortgage advisers". Would an online broker like L&C, Habito, Trussel be able to source this product?

I work in a listed profession but my wife doesn't. Would we still be eligible?

I would be happy with a standard 5yr fixed rate, if the rate is lower, but can't find anything better than 1.40% that doesn't have a fee of £1-1.5K. I've searched lots but is anyone aware of a better deal, or is anything likely to appear now we are in a new quarter?

MFWannabe

What deals is your current lender offering? 

You have a great ltv so should be some good deals out there for you. I know TSB do a ( year fix at 1.39 but there is a £995 fee 

anticlaus105

Natwest is offering 1.44% with £995 fee. Total cost with interest over 5 years = £8600. I also bank with Lloyds who offer 1.39% and ~£800 fee after cash back so total cost = £8137, but have been advised by some they are a pain to deal with. Sadly the atom deal would have been £7069. SW = £7390 in int over 5 years with no offset. I've been running some figures and with SW if I put my saving into SW ofset and save £1k pm then the 5 year cost is £6207, which includes losing interest on savings. Rather enticingly after 5 years I will almost have enough saved to pay the mortgage off.

ACG

The big question is why did it not go well? 
Is there something in your circumstances that could be a problem? 

K_S

anticlaus105 said:

Our fixed rate ends 31st Mar 21 and unless a deal like Atom bank 5 year fix no fee at 1.34% reappears I'm interested in a Scottish widows professional mortgage with offset. I see they offer a 5yr fix 1.40% no fee with offset. Our current mortgage is with NatWest and we applied direct (tried a local independent broker first but it didn't go well). Current LTV 42% with just over £118k balance.
How is the best way to apply with Scottish widows? Website advises: "Our mortgages are exclusively available through independent mortgage advisers". Would an online broker like L&C, Habito, Trussel be able to source this product?
I work in a listed profession but my wife doesn't. Would we still be eligible?
I would be happy with a standard 5yr fixed rate, if the rate is lower, but can't find anything better than 1.40% that doesn't have a fee of £1-1.5K. I've searched lots but is anyone aware of a better deal, or is anything likely to appear now we are in a new quarter?

@anticlaus105

- I'm not sure you have the right info re the "5 year no-fee 1.40% fix with offset". Under their professional range, SW offer the following products, none of which are no-fee and the 5 year fix for your LTV (<60%) is 1.61% with a £999 fee.

- Yes, most brokers (including the ones you listed) should be able to access SW products.

- Off of the top of my head, only one of the applicants needs to be a "professional" but I'd have to call them to be sure

K_S

anticlaus105 said:

Natwest is offering 1.44% with £995 fee. Total cost with interest over 5 years = £8600. I also bank with Lloyds who offer 1.39% and ~£800 fee after cash back so total cost = £8137, but have been advised by some they are a pain to deal with. Sadly the atom deal would have been £7069. SW = £7390 in int over 5 years with no offset. I've been running some figures and with SW if I put my saving into SW ofset and save £1k pm then the 5 year cost is £6207, which includes losing interest on savings. Rather enticingly after 5 years I will almost have enough saved to pay the mortgage off.

@anticlaus105 At that loan size, the top products on a total cost basis are not very far off from the Lloyds deal you've mentioned.

Re the Natwest deal, it's only a tiny difference at that loan size but I can see that Natwest also has a 1.41% w/£995 fee product at 60% LTV for for existing borrowers.

anticlaus105

I found the details above so hope it's correct.

WRT to my previous mortgage broker issue, 5 years ago we approached YBS after searching online, as they were the best rates I could find. I run my own business but have many years of accounts and my wife is PAYE. Despite 25% deposit we left with a footprint on our behinds, the sticking point being me. I have a longstanding history with NatWest including student, graduate and business accounts and personal and business lending, so knew I would have no issues there. Before doing so I decided to try a MB recommended by a friend. I told him I was considering NW but wondered if he could beat their rates. He went on holiday but I waited until he returned. When he returned he phoned me to say the best he could find was NW. I figured I didn't mind him earning commission so let him proceed. A few days later he called me to go over some details. Right at the end of the call he slipped in "Oh and my fee will be £300" as if it was nothing. I asked did he not earn commission from the lender, but he said NW didn't pay enough. I told him to hold off while I thought about it and a couple of days later informed him I no longer required his services. I'm aware MB's should be upfront about fees and don't feel he was. If he had sourced me a better deal then fair enough but he simply came back with the deal I had said I was going for anyway. Not long after I started to suffer identity theft. Thankfully in anticipation of mortgage application I had registered with Experian and Equifax, so when somebody tried to register me again they were alerted and put me on CIFAS?. A credit card was also opened with Halifax who again spotted the fraud, closed it automatically and wrote to me (I also bank with Lloyds who are linked). I find it suspicious as this is the only time this has ever happened to me and it was shortly after giving this guy all my financial details.

I'm not sure if we will just have to go with NW again. We took out a £172.5K mortgage on a £230K house. Current mortgage balance is £118.5K and value supposedly £285K, so I would like to think we are a good prospect, but then I thought that 5 years ago and YBS weren't interested.

K_S

@anticlaus105 As far as I can tell, the 5 year no-fee 1.4% rate you've shared is for product transfers for existing customers. You won't get that for a remo.

Re your experience with the broker, it's fair enough that you're unhappy, a fee should have been disclosed at the outset. NatWest pays a proc fee % much the same as other mainstream lenders, so that's not a valid reason. Plus I can see why you're spooked the by the ID theft that happened around the same time.

anticlaus105

Re the natwest 1.41% the 1.44 is when I go through manage my mortgage and look at switching but I have seen 1.41 on a few comparison sites. Tbh there isn't much between all off them. I've been paying 2.83% and with hindsight would may have been better off switching years ago, even with the redemption fee, so it seems a bit daft worrying about fractions of a percent now.

MFWannabe

For such a small percentage difference it would be much easier to stay with NatWest 
If you change you’d have to go through application, credit checks etc and it wouldn’t be worth the hassle?