Preferred Mortgages Ltd - advice please?

AliceBanned

Hi all

I've been offered a repayment mortgage by the above, (I have a small bit of bad credit history), 7.64% fixed over two years, fees £1,495.

I got this through a broker, have never heard of them (I assume they are subprime) and would welcome any advice - if anyone has had bad experiences for example, would be good to know before i take the plunge. I'm a first time buyer and am lucky to have a right to buy on a council property (concrete) which is only just over £70k with discount.

Thanks for any help!

Leon_W

Preferred are OK

Not necessarily subprime although most of it is. They also do the out of the ordinary, as in your case, concrete AND Right To Buy.

With your set of circumstances I would think that they are probably the ONLY lender that could help you. Best of luck.

Regards

sarkin

Has the broker charged a fee for this deal

Conrad

Preferred have a low tollerance for such properties. I think the valuation will need to deem demand and condition to be 'good' as opposed to 'fair', and to be honest, 'fair' is the norm for council properties as far as surveyors are concerned.

Preferred have very bad service (even thier answer machine to this day is very loud and awfull). I would'nt part with a penny until a human underwriter has completed all thier checks (not just an AIP).

They may well request a copy of 12 months rental history to see if you pay on time or not.

The concrete will be carefully considered by the lenders valuer.

C & G might accept you - they do (did?) RTB and they do adverse credit. Much more likely to accept the property than Preferred. Preferred pay 1.8% commision. C & G pay 0.34% .

minimike2

Platform also do RTB and concrete....i just put one in for these circumstances this week. The rate is similar but the fee is a shade lower. Might want to ask your broker if they looked at them.

AliceBanned

minimike2 wrote: »

Platform also do RTB and concrete....i just put one in for these circumstances this week. The rate is similar but the fee is a shade lower. Might want to ask your broker if they looked at them.

Thank you all! I find this site invaluable - such quick replies too. The broker is getting £700 fee from the lender. I must admit the broker is pleasant but a bit pushy now in that he thinks i should go for three year fixed, as I will have to remortgage with Preferred and won't get anyone else to lend on a concrete build, hence the fees £1500) in two years again!!

I will look into the other options. I had a previous offer from Abbey and from Norwich and Peterborough but they fell through due to me changing jobs, and could have gone through otherwise pending their survey. It is a great flat, very unusual for a council property, great value but with some potential maintenance fees from the freeholder which could add on to the cost, so there is some risk but otherwise I rent for ever! My plan is to sell it in 2-3 years and get into "normal" property!