Nationwide or Lloyd TSB,pls help.

mr_mortgage

mrsbudget wrote: »

But folks, am still open to your suggedtions...It's for £90,000 remortgage, value of property is £220,000. Either a fixed rate for 3 yrs or tracker..whichever you think would be best for me.

Woah! Be careful - you need to work out what it best for you, or employ someone who can give you qualified, regulated advice. An internet forum is not a place where you can get qualified, regulated advice. An internet forum can help educate you so you make your own decision, but you're not going to find someone to tell you what to do...

Thanks all!!

You're most welcome!

mrsbudget

Hi, guys,, thanks for all the concern and help, anyway, I did what I should be doing first at the first place, I phoned my current lender which is Bank of Scotland and asked them what they can offer me if a borrowed additional funds to make my mortgage to £90,000 payable in 16 yrs. The guy I spoke to said, 6% interest tracker (same as I am now), and monthly payable of £730 with £199 arrangement fee and no tied up. He said, I just need to fill up some forms and hopefully there will be no problems since I am with BOS anyway.

I think, I just stick to BOS, am getting stressed already just thinking of going to different people, I know it will still be £20 more than HSBC could offer (taking monthly payment would be £710) but as you said, I really have to decide and work out what is best for me. I am learning though and really appreciate your help.

Thanks everyone..

payless

Again a good adviser should have considerd this option after doing his factfind .. again back down to the "free lunch" ... if in the current market you approach an adviser you need to be sure he looks at all options.

HelpWhereIcan

mr_mortgage wrote: »

I've been harping on about this for a while now, but if you are after a tracker (variable) and are looking to borrow 90% or less of the property there's really nobody to touch HSBC at the moment.

On 3 year deals and the loan amounts the OP is looking at there is really very little to touch the Nationwide deals at 5.75% fixed or 5.74% variable - both have free legals and valuation and only a £599 arrangement fee. Neither product is available through a broker and you must apply through a branch.

have a look at http://www.moneyfacts.co.uk/searches/mortgage.aspx - You can put in the details of what you are looking for and it will look at all deals whether they are available direct only or through a broker.

Use the 'ask me more' button at the bottom of the first page to select the fetaures you want and to have it calculate the total cost over the 3 years for each deal.

mr_mortgage wrote: »

Some things you might need:

• Passport
• Driving Licence
• Last 3 wage slips
• P60
• 3 years accounts (self employed)
• Existing mortgage details
• Existing loans and credit commitments
• Bank statements (3 months)
• National insurance number
• Details of any credit problems
• Existing life/income protection

:rotfl: :rotfl:

All the banks are dying for you to take details of your protection in with you. They make very little on the mortgage and are hoping that you will take out expensive bank products.

Do not let the adviser make you think that yur chances of getting the mortgage will improve if you take their insurance.

I have a client who I sent to HSBC to get one of their deals, came away with quotes for £85 pm worth of insurances which I could improve on (in terms of cover) for £60 pm by looking at the market for them.

A branch based adviser will be useful for arranging the mortgage, but is likely to be the worst possible place to arrange your insurances.

Check out Martin's guides

http://www.moneysavingexpert.com/mortgages/cheaper-life-insurance

http://www.moneysavingexpert.com/mortgages/payment-protection-insurance

You'll be amazed out how quickly a bank based adviser will want to cut the appointment short when they realise you are not going to do any insurances.

HelpWhereIcan

I have done some quick calculations for you and have worked out that you may only be about £59 better off over 3 years!!! by switching to the Nationwide deals I mentioned rather than taking Bank of Scotland up on their offer.

The HSBC fixed rate at 5.98% with a £499 fee would make you about £265 worse off.

The HSBC tracker rates offer a little improvement, but the lowest cost one (taking into account all interest and fees charges) over 3 years would be their 5.99 with no fee which has no real advantage as the Bank of Scotland rate is also a Tracker.

The advantage of the HSBC variable deal is that it is a deal for the term of the mortgage with no ties meaning you are less likely to be in a position where you have to remortgage at a fixed point in the future but you have to decide whether that is better for you or something you want.

In summary, you may want to consider staying with Bank of Scotland depending on how long the Tracker rate is for as there may be no real financial saving to be made by switching to another lender and you would have the hassle/time involved with a new application direct to a lender.

However, if you would prefer the security of a fixed rate and are looking at deals for 3 years you may want to consider the Nationwide 5.75% deal.

This is by no means a reccomendation or advice from me. Just trying to help you work through some figures to make your own decision.

As you are unlikely to get the best deal from a broker who does not consider products only available through branches, you should take the time to do your own homework using tools such as

http://www.moneyfacts.co.uk/searches/mortgage.aspx

http://img.thisismoney.co.uk/calculators/mortgage_comparison_calculator.html

to supplement the 'advice' yo have received so far.

Either that or find a broker who will charge you a research and reccomendation fee and look at all deals - whether available through a broker or not.

As has been said, the way to find out is to ask the broker direct and ask for proof that their research includes all deals from all lenders whether commission is paid or not.

I would expect that a fee of between £100 - £200 is as much as you will need to pay but will probably be well spent to get the reassurance and peace of mind you so obviously need.

Good Luck

payless

Yes Fees of £100-£200 seem reasonable ( OK remember upfront .. not the thousands that some charge ) and I would think that many would refund the fee if the end result( after true comparaison) means they recommend / transact a fee paying deal.

---

although , whilst as mentioned there are better deals ( trackers) than BoS .. from likes of NW and others ( I generally don't like naming lenders / actual deals on these boards ) Base +1 from existing lender assuming ( based on your post) with no fees, no real hassle, no exit fee , & no ties seems a fair bet and competitive , although of course if security of fixed would suit (no way of anyway here knowing) then look further afield

Woodgnome_2

I totally agree with your comments below. I have just recently secured the 5.39% 5 year fixed with the Hsbc. Everything was great apart from the advisor being quite pushy with the (Life/accident/redundancy/house etc )insurances. After my mortgage was approved I told him that my current insurance deals were much better than they could offer and I didn't want all of them anyway.

The banks insurances are not competitive and you can find much better deals on the web. Don't be pushed into it by the banks mortgage advisors who are trying to line their own pockets with bonuses for selling these products.

Quote
All the banks are dying for you to take details of your protection in with you. They make very little on the mortgage and are hoping that you will take out expensive bank products.

Do not let the adviser make you think that yur chances of getting the mortgage will improve if you take their insurance.

I have a client who I sent to HSBC to get one of their deals, came away with quotes for £85 pm worth of insurances which I could improve on (in terms of cover) for £60 pm by looking at the market for them.

A branch based adviser will be useful for arranging the mortgage, but is likely to be the worst possible place to arrange your insurances.

You'll be amazed out how quickly a bank based adviser will want to cut the appointment short when they realise you are not going to do any insurances.[/quote]

mr_mortgage

HelpWhereIcan wrote: »

:rotfl: :rotfl:

All the banks are dying for you to take details of your protection in with you. They make very little on the mortgage and are hoping that you will take out expensive bank products.

<snip!>

You'll be amazed out how quickly a bank based adviser will want to cut the appointment short when they realise you are not going to do any insurances.

My experience is very much on the contrary to that. Now, perhaps it's because of what I do for a living (no, I'm not a mortgage advisor - but I do work for banks) that makes the difference, since I walk in the door knowing what I want, with the documentation that I need. I make it very clear that I don't require anything other than I am asking for (i.e. 'execution only' in old parlance) and I will take very little of their time, in fact I can't wait to get out of there. Part of this is bringing details of existing life cover to show them that if I drop dead, the mortgage will be paid off. Not a bad idea to bring ISA statements which can be taken into account for affordability, payslips AND P60 along with any payslips which have a bonus of any significant amount on them, etc. etc.

With this approach, I've never had anyone try to cut an appointment short or brush them off. They're getting a commission - maybe not the biggest one - but also not getting any difficulty during the entire origination process.

I think the approach of being savvy about the market and making it clear about what you want and helping them by supplying them with everything they need will make it a pretty quick and pain-free transaction.

On the other hand, not everyone is in the position that they know what they want - but if that's the case, what on earth would you be doing going to speak to an 'advisor' in a bank who can only advise on their products! I guess it boils down to if you are going direct to a bank, get everything lined up and know exactly what you want!

mr_mortgage

mrsbudget wrote: »

Hi, guys,, thanks for all the concern and help, anyway, I did what I should be doing first at the first place, I phoned my current lender which is Bank of Scotland and asked them what they can offer me if a borrowed additional funds to make my mortgage to £90,000 payable in 16 yrs. The guy I spoke to said, 6% interest tracker (same as I am now), and monthly payable of £730 with £199 arrangement fee and no tied up. He said, I just need to fill up some forms and hopefully there will be no problems since I am with BOS anyway.

I think, I just stick to BOS, am getting stressed already just thinking of going to different people, I know it will still be £20 more than HSBC could offer (taking monthly payment would be £710) but as you said, I really have to decide and work out what is best for me. I am learning though and really appreciate your help.

Well, if you had just done that you'd never have known if they were offering you a good deal, or not . So, I guess you've sounded out the market, probably learned a good deal along the way and found what is the right decision for you. Nicely done.

Thanks everyone..

You're most welcome. Glad to offer a bit of help - hope it was useful.


Mr M.

Gorgeous_George

mrsbudget wrote: »

Hi,folks,

...a remortgage deal for £90,000 for 16 yrs. here are they.

Option 1 -LloydTSB 3yr fixed rate - 5.99%

- no legal fees
- £1495 Fee added to Mortgage
- tied in for 3 yrs
- Monthly payment = £753.95

Option 2 - Nationwide - 2yrs Tracker - 6.25%

- no legal fees, no survey fees
-£599 fee added
- 2 yrs tied in
- Monthly payment = £759.96

Is it me or are those monthly payments wrong?

I make them £729.80 and £742.67 for Options 1 and 2 respectively for the straight £90K. Add on the fees (and £300 for a survey in Option 1) and I get £744.36 and £747.62 respectively.

I think I'd stick with your current lender as well.

GG