Is this agreement in priciple a bad decision?

Markus247

First time buyer. 2 jobs. One has only been going for a year, hence the need for a broker) House prices in my area 300k for 2 bed. deposit is 85k.

Broker has found a mortgage that lends us the money we need but the fixed rate is 3.24% for 2 years fixed. This would mean a monthly repayment of £885. This sounds incredibly high and also concering with the unpredictable future of the country ahead of us.

So the way I see it is:

a) accept the worrying offer

b) try another mortgage broker? Not sure if that would help

c) Speak to my bank (they offered me far less before as they wont count the second job)

d) Speak to a new build development as they have their ways and means.

Just looking for some advice really as I always make the wrong deicison! Thank you.

kingstreet

Is this £215k on £300k then, LTV of 72%?
Which lender?
What's the term?

MaryNB

That rate does seem quite high.... I got a mortgage with Halifax and they only require one month's payslip if it's a permanent job. Their lending criteria notes: Latest payslip; Income from a new permanent job can be used immediately
Are there any issues with existing debt or your credit history?

ACG

If you have had both jobs for at least 12 months, I would be surprised if you can not find a "normal" lender who will accept both jobs/incomes. 

Markus247

Correct £215k on £300k then, LTV of 72%

I don't know the lender, I told the broker I will get back to him tomorrow before we do AIP.

I was previously told six months ago by the same company that they could get around 1.8%, they were aware one job was only for a year. They are now saying the best they can do is 3.24 as one job is only one years income.

The term is 39 years aswell.

£1000 a month for 30 years.

I was defintely not prepared for this!

Markus247

MaryNB said:

That rate does seem quite high.... I got a mortgage with Halifax and they only require one month's payslip if it's a permanent job. Their lending criteria notes: Latest payslip; Income from a new permanent job can be used immediately
Are there any issues with existing debt or your credit history?

No debt, perfect credit score.
I feel like I should contact Halifax and get a quote from them, but why would the broker give me such a bad deal compared to a bank?

MaryNB

Markus247 said:

MaryNB said:

That rate does seem quite high.... I got a mortgage with Halifax and they only require one month's payslip if it's a permanent job. Their lending criteria notes: Latest payslip; Income from a new permanent job can be used immediately
Are there any issues with existing debt or your credit history?

No debt, perfect credit score.
I feel like I should contact Halifax and get a quote from them, but why would the broker give me such a bad deal compared to a bank?

You need to check your history, not your score. The bank won't see that score, they'll do their own internal assessment. Have you checked through all three reports - Equifax, Experian, Transunion? Use clear score, MSE credit club and credit karma respectively for free access - never pay. I presume your broker has checked if you have anything like any CCJs or defaults. 

Doing an AIP directly with Halifax won't leave a mark, it's just a soft check. I think most banks will let you do a direct AIP without doing a hard search, I believe it's mainly AIPs done via brokers that leave a mark. 

lonibra

Estate Agent MB? To be honest, the MB should be answering these questions. That's what a good one would do.

MWT

MaryNB said:

Have you checked through all three reports - Equifax, Experian, Transunion? Use clear score, MSE credit club and credit karma respectively for free access - never pay. I presume your broker has checked if you have anything like any CCJs or defaults.

... or just use a free 30 day account with 'Checkmyfile' and get all three in one place and Crediva as well...

MovingForwards

@Markus247 you're thinking of £885pm in now money, with current income. Not taking into account payrises, job changes, lotto win, remortgaging, equity getting paid off each month and other things over the years. Plus you've the option of making overpayments to clear it quicker.

Option E is find a cheaper place, further out if needs be, to bring the payment down.

Option F ask your broker what other options there are.

[Deleted User]

What type of contract are the jobs on?

Permanent?
Fixed Term?
Zero Hours?