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Mortgage rates decreasing
Katecooks
Posts: 50 Forumite
My daughter is buying a house and her broker found a 4.5% five year fixed mortgage deal which she has signed. However, she hasn't bought the house yet (and that won't happen until March at the earliest) therefore hasn't started paying any mortgage. The broker has told her that if she wants a new deal she will have to pay to leave the current contract and again to pay for a new one to be set up. She has done the calculations and doesn't think it's worth it (she is borrowing £250,000). Does this sound right? A lot of new deals are now around 4%....
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Do we know who the Lender is?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
how much does she need to pay to leave the current deal?0
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Pay whom? Broker or lender?
4.5% is still a decent rate for 90% but 4% would apply at the 60-70% LTV level. Without knowing the lender or LTV it's difficult to comment with any accuracy.I am a mortgage broker. 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.0 -
The lender is Nationwide and she is putting in a 25% deposit on £297,000. Being done via a broker. Apparently she has signed the contract so her broker has told her she will have to pay to leave0
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If she has a mortgage offer which is not yet close to legal completion, changing products with Nationwide is straightforward and if she has paid a product fee, she will not have to pay another for a product change. I don't understand the problem - other than a possibly lazy broker who doesn't want the hassle.I am a mortgage broker. 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.2
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I think the broker may be pulling a fast one - what exactly has he told her she has to pay - IF she wants to change the deal?0
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Please could you tell me what 'legal completion' is - apparently the documents have been signed 'and processed'kingstreet said:If she has a mortgage offer which is not yet close to legal completion, changing products with Nationwide is straightforward and if she has paid a product fee, she will not have to pay another for a product change. I don't understand the problem - other than a possibly lazy broker who doesn't want the hassle.0 -
Legal Completion is when you actually take possession and the whole of the money changes hands.
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