97% mortgage - anyone other than Halifax?

MortgageMamma

MMD your thoughtful explanation of the facts here just backs up why its important to take advice rather than go direct to lenders for almost everyone

Its imporant that the clients all know the true cost of the mortgage, sadly so many people just look at the rate and the monthly cost with little though to the other issues

However I am the first to admit there are some very savvy DIY'ers. The problem with mortgages is people dont know how wrong they could potentially get it because they have no idea of the technical nature of mortgages or indeed the many many issues that affect an advisers advice

MarkyMarkD

The problem with Nationwide's advertising is that it's aimed directly at direct applicants. A lot of the people seeing this untruthful advertising will believe "Nationwide is different" and "HLC is a rip-off" and go waltzing into the Nationwide, without looking at a best buy table and without getting any advice.

And they'll almost always not be getting the best deal.

I'll go further than that - if they are buying a product over 5 years in term, with over 90% LTV, they are always not getting the best deal.

As MM says, please don't believe a single lender's distorted advertising. Get some professional advice or at the very, very least study some comparison sites.

RubyShoes

I didnt say I believed them... I just said I wasn't too up on the HLC, it was someone else who mentioned Nationwide.

I checked NW website, to see what kind of deal I could get (bare in mind, all of this is hypothetical anyway - as I actually asked for advice on who did 97% mortgages!!) and posted it to see what others thought!

I know only too well how misleading advertising can be, and how important getting the right mortgage is!

I know what I am looking out for pretty much (although as I say, the HLC is something although I know it exsists, did not know how much this could potentially be) and know how to work out if it is the best deal for me.

homer_j_3

MMD, I see what you are saying in the fact that some lenders charging is implicit rather than explicit.

Put the fact that as an adviser you have to compare like for like, i.e. 95% v 95% mortgage, the nationwide may turn out better.

Ok if you look at 75% V 95% then yes the nationwide have clearly worked their profit margins BUT NO HLC can mean an awful lot, especially if the person gets repossessed.

This is a separate topic to what the OP was asking and if you need more than 95% but less than 100% then you are very limited to what options are available.

If your search is that specific, i can only think of one lender that will do between 95-100%other than Halifax. You have now got so far and with the frameworks provided, I can pretty much guarantee if you fit criteria, where your mortgage will be.

MarkyMarkD

Homer, thanks for the comments. I don't think that Nationwide's advertising will catch out advisers at all. Indeed, anyone using a comparison engine on a total cost basis will not get caught out.

But the sort of people who watch, and believe, TV advertising and then walk into their Nationwide branch and buy a mortgage, without any independent advice, certainly are likely to get taken in - which is precisely why Nationwide does it.

Regarding the OP's situation, I think that being blinkered and wanting exactly 97% LTV is over-restrictive. Some lenders do 100% LTV loans at rates which aren't too extortionate. And the same lenders will probably advance 97% on the same rates. So, I don't agree that there are a limited number of 97% options - there are fewer 97% options than 95% options, of course, but there are as many 97% options as 100% options and there are quite a few of those.