Hi,

We've posted before and are now close to applying for a mortgage.

By looking around etc. we have narrowed it down to two options at present

Halifax: 6.59% 5yr Fixed, product fee £299

Natwest: 6.94% 5yr Fixed, product fee £999

A few details . . .

Joint application, both employed full time salaries of £24k and £21k, both 25yrs old, value of house £103k, 5% deposit, we'd prefer fixed so that we know exactly what is going out each month.

The halifax deal seems to be the best at the moment, given our position i.e. only 5% deposit - Or are we missing something?

Thanks for any help in advance.

Hi...to obtain the Halifax product you must be a HBOS bank account holder, you can borrow up to 97% if you wish. Both lenders have a higher lending charge that will be added to the loan. These are direct application deals only, so you may not have the best advice so be careful and consider everything. You do not have to have their insurances so don't be taken in, you are free to shop around. All things considered the Halifax deal does look the best :)

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Regards

Ian

Hi,

Thanks for your advice - much appreciated.

We don't have a HBOS account at present but we know that we'd have to open a current account with them in order to qaulify. I expected a HLC - do you know how much that will be?

When you say 'direct application deals only' does this mean that Halifax don't make these deals open to brokers?

Do you think we'd get a better deal at the moment if we went through a broker? I understand that Halifax would only recommend their own products etc.

As far as i can tell - even if we went to a broker?? - this deal seems to the best for us at present

Hi....direct applications are known as dual pricing. We as brokers are not offered these products, therefore you will only receive advice from that particular lender. This works both ways of course when we get exclusive rates, but you also get unbiased advice. I am unable to say whether this is the best deal as there may be other direct offers from other lenders, this is what makes it so unfair for the client and means that they have no comeback on the advice they receive. Regulation has made a mistake here but the lenders are too big to brought to task and they are all sticking together as far as rates go and the competitiveness has now gone. It's funny isn't it that we brokers are telling clients that they can get better rates by going direct but I can't see the Halifax telling you to go to a broker and see if there is anything better out there. So in summary from what you say the Halifax does look the better option, the HLC is about 1,600. I haven't got their rates here but that is around the figure. One last thing HBOS have just announced that following the exit fee fiasco last year, when they reduced their's to 50 quid have announced that they will be charging 245 up front for their costs of "looking after" your account...nice aren't they???

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Regards

Ian

Thanks again for your advice Ian.

I wasn't aware of the exit fee fiasco, but it does seem that all lenders try to use all kinds of reasons in order to get away with charges and get more money out of you, but then again this is the world we live in isnt it!

I'm still of the opinion that the halifax deal looks the most attractive out of the choice we have availible to us at present, (or at least out of the ones I have seen and given the current media hyped 'panic'), but I think that I may also consult a fee's free broker (I'm assuming that we'll be under no obligation) to see if we can get a more cost effective solution.

Assuming that we do go for advice from both the halifax and broker before deciding on who to go with, should we start an application with both?

e.g. if I go into a branch of halifax, get a quote and a decision in principle, and then do the same with the fee's free broker, is this ok to do?

i.e. at which point should we pause the process, until you are 100% sure you want to go with one particular product?

Thanks again for your valuable advice, I'm sure you should be owed more than a pint or two for the amount of advice you dish out on this forum!!!!!

Hi....you won't get a better deal for this purchase than the Halifax, broker deals are higher for low deposit loans I'm afraid. The Halifax deal would be the one I would offer if it was available to us brokers, so that should tell you something?? It is only advisable to make multiple applications if there are no costs, I think all these deals have valuation fees??? I wouldn't hang around if I were you and if the Halifax deal is required, open the account and get the agreement in principle and book the rate, things are only going to get worse over the next few months.

I'll have a double Jack and Coke while you're at the bar :)

P.S and a packet of Scampie fries!!!!

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Regards

Ian

Thanks Ian, that tells me a lot!

I think I'll get the ball rolling tomorrow.

Thanks again for all your advice, I'll let you know how we get on.

P.S. I'm sure I could stretch to a packet of scampi fries . . . after all I haven't started paying the mortgage yet!

Hi Ian,

Just thought I'd let you know everything went smoothly and we've got an offer.

They did try to get us to sign up for their insurances so I'm going to have a search about before I commit to them, however they do look fairly comprehensive.

Anyway, thanks for all your help.

I am pleased that things have gone well. Halifax insurances are pretty good in respect of B&C and ASU, although it doesn't hurt to look around. Legal & General come out pretty well for all types of insurance.

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Regards

Ian