Find the Best Mortgage: Article Discussion Area

herbiesjp

Yogini wrote: »

Hi,

Was wondering if anyone had any advice about this one. My little sister is trying to buy (1st time buyer). She went through a financial advisor to get a mortage. Nationwide offered her 85% LTV, initially, then asked for about 3k more. Agreeing this, she went ahead with the survey. They took over £1500 out of her account including about £900 product fee. However, since the survey was done, they have refused and are now asking for 20% deposit. There is nothing in the survey or her credit check that would explain their decision. They are refusing to refund any of the money they have taken, so she will be massively out of pocket if she wants to go elsewhere. They are also refusing to specify why they have changed their minds.

What should she do? I suggested she go to the FSA, or at least put a complaint in writing. She is naturally anxious about going anywhere else until she knows whether she will get any of her money back, so things have stalled in terms of the purchase going forward.

Your advisor should be answering these questions for you or at the very least pushing for an answer from Nationwide.

Your advisor should be making a complaint on your behalf if there is indeed no explanation for this.

However I would tend to think that there is something about your scenario that would have limited you to 80% borrowing from the outset.

alsion_2

Hi, and hope I am doing this right. If not please forgive me. We have a house let out with permission from the mortgage lender and the rent is paying the mortgage. We have also built another house. Would it be possible to leave the existing mortgage in place on the house that is let out and also get a residential mortgage on the new build to raise finance (possibly for another build). If so would a lender be able to ignore the current mortgage as it is self sustaining when taking into account wether our income was sufficient to pay back the second mortgage?:)

PeteW

Hiya, if I want to reserve a fixed rate mortgage - how far in advance can I do it? I don't think my existing deal finishes until around August

RedRoan

Just a quick note to say that I was glad I checked out some of the direct deals mentioned in article that Broker's might not deal with. 2 x Broker's had given me the best of a deal at 3.79% (2yr fixed, 75%LTV, borrowing £79500, 1st time buyer) with £250 cashback and a free valuation (though I wanted a Homebuyers report anyhow which would be £450, though I might have been able to source separately cheaper) and no arrangement fee.

YBS offered £2.79%, still with the £250 cashback, an arrangement fee of £95, exit fee of £90, Homebuyers survey of £450 - overall, I calculated my 2 year saving at over £800!!! Rang back both the Brokers who mumbled something about not having access to all deals...

On a major plus, I also got to go with YBS which scores very high on ethical ratings, rather than Santander...

kingstreet

RR - perhaps you needed a different kind of broker;-

In some cases, using an independent broker may be preferable to a whole market adviser.

Whole market advisers may only select from lenders and products which pay them a commission, while an independent may agree a fee with you and pay to you any commission he receives. If a direct to lender product is better for you, the independent will tell you if that is better as you are paying a fee for the advice.

Here's an example;-

You see a whole market broker looking for a 25 year repayment £150k mortgage on a £200k purchase. You want the best five year fix, regardless of fees. You agree the broker will take commission on any arranged mortgage.

He finds you an Accord Mortgages product at 4.44% fixed until 31/08/2016 at £828.65 per month. The broker will receive commission of £487.50.

You then see an independent broker who agrees to charge you a fee of £299 and to pay you any commission he receives on any arranged mortgage. He also looks at direct to lender deals and explains that in this case, you may get the best deal, but no commission rebate.

He finds you the Accord option, but as you have a fee agreement, he tells you the commission rebate would be £487.50, leaving you £188 better off.

The best overall deal is Yorkshire Building Society's 3.99% fix until 30/09/2016. The monthly payment is £790.93. This is a direct to lender product, so no commission rebate. You've paid a £299 fee, but in doing so, the monthly cost of your mortgage has fallen by £37.72 against the Accord option, saving you £2,263 over the five year fixed term.

I'm sure someone will point out that you can save £299 by finding the best direct deals yourself and that is true. If you have the time and inclination to do that, why bother with a broker at all?

dcc251

You mean;
unqualified/ unregulated/ UK/ commission/ personal/ isn't/ purchase/ cheaper, and I haven't even started on the punctuation or grammar.

I dread to think what your mortgage advice would be like.

RyanP wrote: »

Through my eyes Martin Lewis is a non qualified/ un regulated advisor who reccommends his products for personla gain.

1.For example in the section where Martin Lewis lists the Uks Best Brokers he gets paid a commision from them when you go on to his site. This isnt very whole of market.

2.Everyone listens to his advice which is not supposed to constitute financial advice. Just heard him on radio 1 saying that mortgage brokers cannot advise on direct deals.We can advise on direct deals and this constitutes proper advice, recommending the most suitable product to the client. I have never heard such a lie.

3. He also stated that no one should purchhase a house at the moment because renting is chepaer. What a silly statement to come out with, no wonder house prices all falling with media/ martin lewis giving unqualified advice.

These are a few points of many, what you are reading is media for personal gain, his advice is not regulated and can be damaging to yourself never mind the nation if he is making such remarks on radio 1.

kingstreet

dcc - the post you are quoting dates back over three years, the time also elapsed since the member last posted on the board. You may, as a consequence, be wasting your time.

shaunv007

we have a £50.000 fixed rate mortgage with halifax and this ends this december and we will be looking for a new deal , we know its 3 months away but is there good deals to have , we have lots of equity in the house , approx $150.000 plus

Goldust

Hi all

I've temporarily moved back in with my folks while I sort out buying a house. For the price range I'm looking at I have a 15% deposit which seems to give me a half decent rate and I've read Martin's guide to how to find the best deals.

Now my question is a really stupid and basic one but as I'm a FTB I have no clue. Do I have to have a mortgage agreed before I start looking at houses? Or do I go and look at some and then when I see one I like put in an offer and then get the mortgage for that amount.

Sorry if that is a silly question!

Daisy_24_2

Advice needed really - myself and partner have @200k savings and are looking for a small mortgage (25k over 10 yrs) to enable us to buy a house outright - which would be the beat way to go for us.

Thank you