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90% mortgages and meeting with advisor for 1st time

#1
Hopefully be starting to apply for a mortgage this week I should be able to put down a 10% deposit and looking for a mortgage of around 55k. I've already spoken to an independent advisor over the phone at the estate agent were I seen the property I'm interested in.

He has advised me that while mortgages are available with a 10% deposit they are attracting a higher interest rate at 7% this was with the Halifax is this the case? I will be classified as a 1st time buyer

I'm meeting him face to face today what sort of questions should I be asking him?
 
#2
brettarider said:
Hopefully be starting to apply for a mortgage this week I should be able to put down a 10% deposit and looking for a mortgage of around 55k. I've already spoken to an independent advisor over the phone at the estate agent were I seen the property I'm interested in.

He has advised me that while mortgages are available with a 10% deposit they are attracting a higher interest rate at 7% this was with the Halifax is this the case? I will be classified as a 1st time buyer

I'm meeting him face to face today what sort of questions should I be asking him?
I know someone who is going through this process at the moment and that was the figure that was discussed for a 10% deposit. With base rates at 0.5%, it is astonishing that Halifax can demand 7%!

I suspect that the questioning will be the other way... :(

I would ask about what your options will be when your current offer ends - do you go onto the SVR etc?

How long will the application take? Anecdotal evidence says weeks!

If you pay the arrangement fee, and the bank says "no", does it return the fee?

Litotes
 
#5
I took out my motgage with halifax in april and i got about 7%. Yes there .5% now but its fixed for 5 years and there not going to be .5% in 3 years (although they might not be 7% either) i just had to take what i could get. Had to move out of home and had just come back of tour and didnt want to waste all my money on shit. I took out LSAP for the 10% and i got a mortgage of 64K.
He might want to see your last 3 pay slips and your last P60 (or is it P45 the one you get every april not when you get sacked)
Ask about set up fees etc i think my mortgauge had an extra 1000 stuck on it from the start.
Unless things have changed since april its very much a sellers market i coudnt really shop around at all.
 
#7
Haha looking at Paisley mate propetry on market for 59.995k and seller is offering 5k cash back as kitchen and bathroom need re-doing flats a 2 bedroom and ok as well

Still wish it was back when I got my 1st Mortgage in 2000 3 bedroom house 2 reception rooms and a garage for 43K!
 
#8
Couple of things.
Consider LSAP if it is available to you, although it isn't an advance of pay at all (lying barstewards) but a secured loan on a chunk of the property, that will scare some lenders away.

Do not underestimate the amount of money you will need to 'set up home'. Moving in, decorating, new furniture, work required etc...

Also make sure financial adviser is independant.
 
#9
brettarider said:
Haha looking at Paisley mate propetry on market for 59.995k and seller is offering 5k cash back as kitchen and bathroom need re-doing flats a 2 bedroom and ok as well

Still wish it was back when I got my 1st Mortgage in 2000 3 bedroom house 2 reception rooms and a garage for 43K!
Vendor cash back may cause you a problem.
 
#10
ENSURE that the guy is an Independent Financial Adviser. Be *very* specific about this, plenty are tied ie they can only sell the products of one / a limited number of providers.

Check to make sure he does not simply say "I'm independent". Not the same thing; can mean "independent of the Estate Agent.
 
#11
I have just taken out my mortgage with the Halifax. The rate - 7.49% fixed for 5 years! Credit rating - A. The problem is as a first time buyer they have you by the nuts if you only have a 10% deposit (mine was 13%). Wish my house was that cheap!! However, once my place is done up then I will have a good deal of equity in it and then may take the redemption hit and remortgage. It could be alot cheaper doing it that way but at least I know what I am paying for the next 5 years.

Edited to add, I can also tell you that your valuation will be high too. Brace yourself because if you really want your own place the banks will rip you off big time!! We are paying for their mistakes! :x
 
#13
brettarider said:
Haha looking at Paisley mate propetry on market for 59.995k and seller is offering 5k cash back as kitchen and bathroom need re-doing flats a 2 bedroom and ok as well

Still wish it was back when I got my 1st Mortgage in 2000 3 bedroom house 2 reception rooms and a garage for 43K!
Jesus, hope you've got a good stab vest and good insurance!!!!
 
#14
Bravo_Bravo said:
ENSURE that the guy is an Independent Financial Adviser. Be *very* specific about this, plenty are tied ie they can only sell the products of one / a limited number of providers.

Check to make sure he does not simply say "I'm independent". Not the same thing; can mean "independent of the Estate Agent.
And ask him if he is going to charge you a fee or take a procuration fee from the lender or both. And then go to the HSBC.

Max Loan Balance £400,000 & Max LTV 90%
Life Time Tracker - Special

Rate Bank of England Base Rate + 4.09% for term Overall cost for comparison 4.8% APR

Term Tracker app fee £999

rate currently at 4.59%

You can call them on 0800 169 6333†, 8am – 10pm, 7 days a week

My fee for this advice is Two Pints if you ever see me at an ARRSE crawl.Normally I'd charge you 1% for the advice but I'm feeling genereous.
 
#15
HSBC might advertise this however, when it comes down to it and the application they change their minds. There have been cases recently of people with a 45% deposit going to HSBC, with good credit ratings and being refused.
 
#16
urban_spaceman said:
Couple of things.
Consider LSAP if it is available to you, although it isn't an advance of pay at all (lying barstewards) but a secured loan on a chunk of the property, that will scare some lenders away.

Do not underestimate the amount of money you will need to 'set up home'. Moving in, decorating, new furniture, work required etc...

Also make sure financial adviser is independant.
Got my own furniture and deal would see 5k back to cover decorating costs which given whats required with a careful bit of budgeting and tradesmen in the family/freinds should be quite easy to do what's required :wink:
 
#17
Enigma266 said:
HSBC might advertise this however, when it comes down to it and the application they change their minds. There have been cases recently of people with a 45% deposit going to HSBC, with good credit ratings and being refused.
We'll they've all been guilty of that in the recent past. However what are HSBC doing with the App fee in those circumstances?
 
#18
Bruce Road, Paisley, Renfrewshire

***HOME REPORT AVAILABLE***Lower cottage flat comprising reception hallway, lounge, kitchen, two bedrooms and bathroom. The property benefits from gas central heating, double glazing and garden grounds.


Is that the one?
 
#20
BiscuitsAB said:
Enigma266 said:
HSBC might advertise this however, when it comes down to it and the application they change their minds. There have been cases recently of people with a 45% deposit going to HSBC, with good credit ratings and being refused.
We'll they've all been guilty of that in the recent past. However what are HSBC doing with the App fee in those circumstances?
I have no idea but I suspect hanging on to them! Personally, I didnt get that far with them.

Also be aware that once you have an agreement in principle you have been credit scored so to keep your shiney credit rating make sure you are happy with the company before getting an agreement in principle and dont be swayed by the estate agents mortgage bod. I am learning very quickly that 99% of people in this business are liars.
 

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