Mortgage advice - broker quotes

LKJAH

Hi MSE members!

I need some mortgage advice. I put in an offer for a 1 bed flat which was accepted. Eeek!

I am looking to put down a 40% deposit, the rest mortgage.

My predicament: I have three mortgage quotes from two brokers. I just don’t know which would be the best in my situation: share of freehold, 1st time buyer, London location, don’t want to be paying beyond age of 65 (approx. 25 years), on a decent public sector salary, looking to put 40% mortgage, looking to live in the flat for 5 years minimum, 8 years maximum.

These are the mortgage quotes I have received. Any advice from experienced MSE folks would be amazing! Thank you!

Option 1 - 75% Loan to value

Purchase price of £295k

Deposit £73,750

Loan amount of £221,250

2 year fixed rate of 1.31%

Lender fee of £999 added to the loan

Monthly repayment of £790.52 over a 28 year term

Valuation fee £200 (instructed on application)

Broker fee of £495 payable once we have successfully provided you with your mortgage offer

Option 2 – 60% Loan to Value

Purchase price of £295k

Deposit £118,000

Loan amount of £177,000

2 year fixed rate of 1.11%

Lender fee of £999 added to the loan

Monthly repayment of £616.58 over a 28 year term

Valuation fee £200 (instructed on application)

Broker fee of £495 payable once we have successfully provided you with your mortgage offer

Option 3 – 60% Loan to Value

Purchase Price: £295,000

Deposit £118,000 (40%)

Mortgage £177,000 (60%)

Term 23 Years (to ensure the term does not extend beyond age 65)

Method Repayment Capital & Interest

2 years fixes – interest rate 1.64% - monthly payments will be £770.27

If arranged over 25 years, monthly payments would be £719.59

NO Lender Arrangement fee

FREE Valuation fee

Broker fee - £350. Fee is paid only on completion, no completion = no fee

£500 Cash back (payable to you on completion)

getmore4less

Which lender(s)?

Why only 2 year options?

Why different full terms?

Are you planning to overpay?

K_S

@lkjah 60% LTV, relying on PAYE basic income, 1-bed London flat, term to 65, 2-year fix. So far so standard.

In principle, if you go to 3 whole of market brokers (whether free or fee-charging) on the same day with the same standard requirements, you should be getting the same recommendation/s as (from the limited info in your post) there's nothing at all unusual about the case. But it looks like you're not fully decided on what LTV you're looking for.

ACG

Did you give them all the same information? If you did, then broker 1 and 2 need sacking, one has gone with a smaller deposit and the other has gone past your (presumably) chosen retirement age. Assuming they can not listen to get the basics right, they do not have much hope. Assuming you have given them all different information, its not surprising you have different options. 

This is why you should only speak to one broker, 2 of those have wasted their time but it has caused confusion. Find a broker you like and trust. 

lonibra

I agree. Find an advisor, get their advice. Good advisors usually inundate you with evidence to support their recommendation and are happy to answer any 'why' questions. 

If after all this you don't trust their advice or aren't comfortable, then find another one. 

In your case, it will simply boil down to total cost unless the flat is unusual in some way. It's sounds like a usual converted flat though.

getmore4less

They said 2 brokers.

First two seem to be the same one given a different fee on the 3rd.

The 3rd being no product fee needs the comparison to the product fee based rates.

ACG

getmore4less said:

They said 2 brokers.

First two seem to be the same one given a different fee on the 3rd.

The 3rd being no product fee needs the comparison to the product fee based rates.

Theres me saying the first 2 did not listen and I did not read 

In that case, I would still go with the last broker. The first has done the wrong term and LTV... Its not difficult to get the basics right. 

[Deleted User]

I'd try avoid a valuation with a fee if you are buying a flat.  EWS1 throws so many cases out so dont want to waste your money.  

Broker 2 seems to have a better grasp of what you are wanting to do.   Broker 1 seems to have just given you what they want rather than what you want

LKJAH

Thanks to you all for your advice! I will follow your recommendation and go with Broker 2.