My Mortgage Offer

peterc2609

Been offered this:

Value £155,000
Mortgage £147,250 over 25 years

Lender 1:
-Fix 6.44% for 2 years
-Arrangement fee £1999* can be added to loan
-Mortgage Indemnity Premium FREE
-Valuation fee £305 upfront
-You pay your own solicitors
-Redemptions: 5% in fixed period, 10% per annum overpayments allowed without penalty
-Monthly payments for £149249* would be £1002.15 on repayment or £800.97 on interest only

They have a 3 year fixed at 6.34% which would be £992.87 on repayment or £788.53 on interest only

Lender 2:
-Fix 5.99% for 2 years
-Arrangement fee £1499* can be added to loan
-Mortgage Indemnity Premium FREE
-Valuation fee £384 upfront
-You pay your own solicitors
-Redemptions: 5% in fixed period
-Monthly payments for £148749* would be £957.48 on repayment or £742.51 on interest only

They have a 3 year fixed at 5.89% which would be £948.41 on repayment or £730.11 on interest only

I'm nt sure who the lender is, but the broker (a specialist in IT contracting) charges £400 for their services, 200 on application and 200 on completion. As well as the money from the lender.

Seriously now... are there any brokers on here who could help me? PM me if you can.

ixwood

I know you're not asking and don't care, but those are really bad deals imho. especially in the current climate.

Why don't you save for 6 months or a year 1st? You'll get a much better deal on a mortgage and probably a house!

And considering you haven't saved a bean even being on good money suggests you'd struggle repaying it to me.

herbiesjp

What worries me is that you do not have an illustration to look at and see who the lender is - or do you?

Ask them who the lender is

peterc2609

I'm waiting on an email back from him re: the lender.

Bear in mind ixwood, I don't have a Daz white credit file... so the rates seem quite OK to me!?!?!?

What is an illustration??

ixwood

I don't get the big rush to buy, regardless of the rate. There's not much doubt now, we're at or near at least the peak of the market. So you're probably buying an overpriced assest with very expensive debt at the worst time in 20 years in a job with the least amount of security available.

If I was you, I'd wait 6 months, save like crazy for a decent deopist and work on my credit rating.

Have you loooked at all the insurance you'll need, since you have no company benefits/sick pay etc?

herbiesjp

peterc2609 wrote: »

What is an illustration??

You say you have spoken to several brokers - and not one has given you an illustration or told you what one was?

peterc2609

Thanks fo your concern Ixwood, but I really don't need it.

Why can't people just give me the info I request. Instead we just have certain people on the board who insist on painting the blackest picture possible.

Market is going to crash.
Your job is unsafe.
Your deposit is not enough.
House is overpriced.
Credit rating is rubbish.

And its not just me... plenty of people come on here looking for advice... in laymans terms... and instead they end up going away looking for the noose or razor blades.

Maybe I'm moving into a house because I want to live there, and not sell in 2 years to make a profit. I'm not a developer. I'm looking for a home.

At the end of the day, I currently rent. If I came out of work, I'd have nowhere to live.

Whats the difference?

No jobs are safe nowadays. My current role is probably safer than the permanent employees in the company.

So, for anyone who wants to listen, please can people just provide the facts. I think that in this kind of industry opinions should not come into play. Its peoples lives you are talking about. Not just cold hard cash.

Rant over.

peterc2609

I thought a mortgage illustration was just a page telling you what you could borrow and at what rate kinda thing....

And that is what I had posted above? I think!?!?

herbiesjp

peterc2609 wrote: »

I thought a mortgage illustration was just a page telling you what you could borrow and at what rate kinda thing....

And that is what I had posted above? I think!?!?

No it is called a Key Features Illustration - or a quote for want of a better wors, and is in a standardised format for all lender, and highlights the key points of the deal

It can be 5-7 pages long depending on the deal

ixwood

You got advice. You just don't like it.

Messgae recieved though. Good luck!

homer_j_3

A Key Features Illustration will have a 12 numbered sections to it and will relate to 1 deal. It will have a nice "Key Facts" sign on it in the top left hand corner.

The KFI will tell you who the lender is and all the specifics of that deal.

The above 3 deals are just basic options and it sounds like they are asking you to choose which is not good. The adviser should have found out what your priorities were - low fees, low payments or overall lowest cost etc. If they had found that out, they would have known which one is best for you.

Have you had any paperwork with the "Key Facts" sign on it?