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Broker deal vs First Direct

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  • MFWannabe
    MFWannabe Posts: 2,458 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 10 June 2023 at 2:02PM
    Personally if it were me and the way rates are being pulled/increased at the moment I’d go with the broker 
    No point putting yourself through extra stress 
    MFW 2025 #50: £1139.75/£6000

    12/06/25: Mortgage: £65,000.00
    07/03/25: Mortgage: £67,000.00
    18/01/25: Mortgage: £68,500.14
    27/12/24: Mortgage: £69,278.38 

    27/12/24: Debt: £0 🥳😁
    27/12/24: Savings: £12,000

    07/03/25: Savings: £16,500

  • K_S said:
    K_S said:
    @squarehead99 Sorry it's not clear to me, at what stage is the FD rate secured? Has it not been secured yet?
    so dont know what to do, price is still locked in with nationwide via broker, had my docs accepted by First Direct and awaiting underwriters decision before I can even book a mortgage app with them (states within 7 days for the decision from underwriter) upon speaking to FD they say its usually a lot quicker than 7 days however. Also queried wait times for appointments and again they advised these are usually around 5 days or so. So potentially 10 days wait, in which time their rates could shoot up meanwhile I lose my deal with Nationwide... sending anxiety into overdrive! what should I do?
    No, I asked this today and despite having an AIP they advised no rates are secured until my mortgage appt. Which could obviously be in about 10 days. Part of me is thinking just go with nationwide for the sake of £10-20 a month and secure it sooner (as I have a rate locked in with them via the broker) 
    @squarehead94 In that case, from a rate point of view, you might not have this quandary in 10 days time. HSBC (FD's parent company) is upping rates from Monday, and while FD could hold out a bit longer (as unlike HSBC it can throttle/delay the volume of direct applications fairly easily) I would be surprised if the rates they offered today were unchanged in 10 days time.

    I'm not entirely clear what you mean by the part in bold above as I read it as saying that you have a rate locked in but it isn't secured. I would assume both to mean the same?

    With Nationwide, there are two ways to secure a product/rate (subject to underwriting) -
    - the first is the broker doing a DIP, getting a Yes and then 'reserving' a specific product/rate for 90 days
    - the second is the broker actually submitting a full mortgage application

    Once you have the above then irrespective of whether Nationwide ups rates (like they did yesterday for some products), your product/rate is safe subject to full underwriting.
    Thanks for that. I think I'm just going to call my broker and go with nationwide and save the hassle for such a small monthly amount currently.

    Re your highlighted query, my broker advised my rate of 4.79% was locked in (I note their rate has now gone up to 4.89% but I believe I'm still guaranteed the 4.79% deal)
    Whereas first direct I'm at the under writer review stage, they advise once a decision is made (within 5 working days) I can then book an appointment to then secure a rate, but obviously that rate now isn't yet secured so their currently advertised rate could well go up significantly in the next week or two before I can lock in a price
  • K_S
    K_S Posts: 6,880 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    @squarehead94 Ah ok, that'll be a NW product reservation then, there's no other way to lock-in a rate besides an actual full application https://www.nationwide-intermediary.co.uk/products/reserving-a-product
    K_S said:
    K_S said:
    @squarehead99 Sorry it's not clear to me, at what stage is the FD rate secured? Has it not been secured yet?
    so dont know what to do, price is still locked in with nationwide via broker, had my docs accepted by First Direct and awaiting underwriters decision before I can even book a mortgage app with them (states within 7 days for the decision from underwriter) upon speaking to FD they say its usually a lot quicker than 7 days however. Also queried wait times for appointments and again they advised these are usually around 5 days or so. So potentially 10 days wait, in which time their rates could shoot up meanwhile I lose my deal with Nationwide... sending anxiety into overdrive! what should I do?
    No, I asked this today and despite having an AIP they advised no rates are secured until my mortgage appt. Which could obviously be in about 10 days. Part of me is thinking just go with nationwide for the sake of £10-20 a month and secure it sooner (as I have a rate locked in with them via the broker) 
    @squarehead94 In that case, from a rate point of view, you might not have this quandary in 10 days time. HSBC (FD's parent company) is upping rates from Monday, and while FD could hold out a bit longer (as unlike HSBC it can throttle/delay the volume of direct applications fairly easily) I would be surprised if the rates they offered today were unchanged in 10 days time.

    I'm not entirely clear what you mean by the part in bold above as I read it as saying that you have a rate locked in but it isn't secured. I would assume both to mean the same?

    With Nationwide, there are two ways to secure a product/rate (subject to underwriting) -
    - the first is the broker doing a DIP, getting a Yes and then 'reserving' a specific product/rate for 90 days
    - the second is the broker actually submitting a full mortgage application

    Once you have the above then irrespective of whether Nationwide ups rates (like they did yesterday for some products), your product/rate is safe subject to full underwriting.
    Re your highlighted query, my broker advised my rate of 4.79% was locked in (I note their rate has now gone up to 4.89% but I believe I'm still guaranteed the 4.79% deal)

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • K_S said:
    @squarehead94 Ah ok, that'll be a NW product reservation then, there's no other way to lock-in a rate besides an actual full application https://www.nationwide-intermediary.co.uk/products/reserving-a-product
    K_S said:
    K_S said:
    @squarehead99 Sorry it's not clear to me, at what stage is the FD rate secured? Has it not been secured yet?
    so dont know what to do, price is still locked in with nationwide via broker, had my docs accepted by First Direct and awaiting underwriters decision before I can even book a mortgage app with them (states within 7 days for the decision from underwriter) upon speaking to FD they say its usually a lot quicker than 7 days however. Also queried wait times for appointments and again they advised these are usually around 5 days or so. So potentially 10 days wait, in which time their rates could shoot up meanwhile I lose my deal with Nationwide... sending anxiety into overdrive! what should I do?
    No, I asked this today and despite having an AIP they advised no rates are secured until my mortgage appt. Which could obviously be in about 10 days. Part of me is thinking just go with nationwide for the sake of £10-20 a month and secure it sooner (as I have a rate locked in with them via the broker) 
    @squarehead94 In that case, from a rate point of view, you might not have this quandary in 10 days time. HSBC (FD's parent company) is upping rates from Monday, and while FD could hold out a bit longer (as unlike HSBC it can throttle/delay the volume of direct applications fairly easily) I would be surprised if the rates they offered today were unchanged in 10 days time.

    I'm not entirely clear what you mean by the part in bold above as I read it as saying that you have a rate locked in but it isn't secured. I would assume both to mean the same?

    With Nationwide, there are two ways to secure a product/rate (subject to underwriting) -
    - the first is the broker doing a DIP, getting a Yes and then 'reserving' a specific product/rate for 90 days
    - the second is the broker actually submitting a full mortgage application

    Once you have the above then irrespective of whether Nationwide ups rates (like they did yesterday for some products), your product/rate is safe subject to full underwriting.
    Re your highlighted query, my broker advised my rate of 4.79% was locked in (I note their rate has now gone up to 4.89% but I believe I'm still guaranteed the 4.79% deal)
    Can I double check then that a reservation will still guarantee me that rate? When I log in to the brokers app (myfluent for reference) it's still showing that rate.
  • K_S
    K_S Posts: 6,880 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    edited 10 June 2023 at 6:10PM
    @squarehead94 You’d have to check with the broker to be sure but if they have reserved a product then it works like in the link in my post above-

    “In NFI Online you can reserve a product without needing to submit a full mortgage application. 

    If an offer is issued within 90 days of the original product reservation date, we’ll honour the rate you reserve. Even if rates subsequently change. 

    If an offer isn’t issued, you’ll have to choose a new product from the range available at that time.”

    K_S said:
    @squarehead94 Ah ok, that'll be a NW product reservation then, there's no other way to lock-in a rate besides an actual full application https://www.nationwide-intermediary.co.uk/products/reserving-a-product
    K_S said:
    K_S said:
    @squarehead99 Sorry it's not clear to me, at what stage is the FD rate secured? Has it not been secured yet?
    so dont know what to do, price is still locked in with nationwide via broker, had my docs accepted by First Direct and awaiting underwriters decision before I can even book a mortgage app with them (states within 7 days for the decision from underwriter) upon speaking to FD they say its usually a lot quicker than 7 days however. Also queried wait times for appointments and again they advised these are usually around 5 days or so. So potentially 10 days wait, in which time their rates could shoot up meanwhile I lose my deal with Nationwide... sending anxiety into overdrive! what should I do?
    No, I asked this today and despite having an AIP they advised no rates are secured until my mortgage appt. Which could obviously be in about 10 days. Part of me is thinking just go with nationwide for the sake of £10-20 a month and secure it sooner (as I have a rate locked in with them via the broker) 
    @squarehead94 In that case, from a rate point of view, you might not have this quandary in 10 days time. HSBC (FD's parent company) is upping rates from Monday, and while FD could hold out a bit longer (as unlike HSBC it can throttle/delay the volume of direct applications fairly easily) I would be surprised if the rates they offered today were unchanged in 10 days time.

    I'm not entirely clear what you mean by the part in bold above as I read it as saying that you have a rate locked in but it isn't secured. I would assume both to mean the same?

    With Nationwide, there are two ways to secure a product/rate (subject to underwriting) -
    - the first is the broker doing a DIP, getting a Yes and then 'reserving' a specific product/rate for 90 days
    - the second is the broker actually submitting a full mortgage application

    Once you have the above then irrespective of whether Nationwide ups rates (like they did yesterday for some products), your product/rate is safe subject to full underwriting.
    Re your highlighted query, my broker advised my rate of 4.79% was locked in (I note their rate has now gone up to 4.89% but I believe I'm still guaranteed the 4.79% deal)
    Can I double check then that a reservation will still guarantee me that rate? When I log in to the brokers app (myfluent for reference) it's still showing that rate.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • I'm in exactly the same boat as you. I had a quoted figure for fixed rate 5 years from a broker but found a deal with First Direct that would save me about £2k over the 5 year period. Did the initial phone call but unsure how quickly I could secure a rate with FD vs how quickly my broker can secure rate with Santander.
  • HarryT123 said:
    I'm in exactly the same boat as you. I had a quoted figure for fixed rate 5 years from a broker but found a deal with First Direct that would save me about £2k over the 5 year period. Did the initial phone call but unsure how quickly I could secure a rate with FD vs how quickly my broker can secure rate with Santander.
    First direct will take you at a bare minimum 10 days to even secure you a rate. You need to do the app over the phone, once you get your AiP you submit bank statements & other docs, then they do the hard credit check which they state can take up to 7 days then you can book the appointment with a mortgage advisor where you secure a rate. 

    Honestly kind of regret going through the process with first direct myself, if the broker can sort you out with Santander I'd maybe go with them to be honest, or nationwide if there deal is good for you as well.
  • K_S
    K_S Posts: 6,880 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    HarryT123 said:
    I'm in exactly the same boat as you. I had a quoted figure for fixed rate 5 years from a broker but found a deal with First Direct that would save me about £2k over the 5 year period. Did the initial phone call but unsure how quickly I could secure a rate with FD vs how quickly my broker can secure rate with Santander.
    @harryt123 With Santander your broker will need to submit a full application to secure a rate. They are upping rates (doesn't necessarily mean every single product will see a rate rise so you may or may not be affected) from Tuesday so your broker will probably need to get it in by eod tomorrow if your rate is getting pulled.

    No idea how the FD process works.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • So no surprises FD upped their rates, now the same price as nationwide via my broker (nationwide has actually gone up) but thankfully my price was secured so just going with nationwide now. Thanks for the help anyway
  • @K_S quick question, so I hadn't realised at the time that FD were doing a hard search on me (I assumed this would be at the mortgage appt stage, however I suppose my fault for not thoroughly checking their processes) I'm now sticking with the broker recommended Nationwide deal - and they have submitted my application. Do you envisage this hard search to be an issue with Nationwide? I only ask as my Credit Score dropped 70 points on Clearscore following the addition of the hard search via First Direct.
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