I'm in the process of looking around for Mortages to get an 'agreement in principal'.
As a first time buyer with a 5% deposit, Yorkshire appear to be offering the most favourable rate for a 2 year fixed and they do have a branch in my local high street.
I had a look for reviews online (like I do for most things I purchase) and noted they had predominant bad reviews out of the 25 or so submitted, mainly due to slow or bad service.
I'm thinking they are irrelevant due to the low volume and the fact you'd probably only bother writing a review for a mortage provider if you've had a bad experience, hence the high percentage of bad ones.
Does anyone have any experience of a mortage with them, or think I should be concerned with some bad reviews, or is it a case of if the rate and terms are best, to hell with the rest?
Cheers.
I have my mortgage with them for 12 months as a first time buyer last year they was the best around. I have had no issues of any sort to be honest.
If you are starting out and can afford a 5 year fix I'd do it, yes you can take a cheaper rate but that needs to be balanced against affordability if rates go up. I'd work on the basis of rates being 1-1.25% higher in 3 years time, do the math and see what comes out.
Many of us can remember double digit interest rates, it can be painful!
I remember my mortgage being 15.5%. How did we survive?!
by borrowing comparatively a lot less than what 'we' borrow' nowadays
Indeed, although I'd say most struggled as much or more than these days in the paying even though proprtianelty we borrowed less.
My first house was £80k, I borrowed £70k and at the time earned about 18k. I was luckier than most as worked for a building society so got a 5% mortgage interest only paying a bit under £300 a month rather than the £700 it should have been. My take home pay from memory was about £1200 a month but with overtime & second job I'd get £1600 in all.
Do people still do second jobs? In the early 90's it was the only way I saved a deposit and lived 'ok'....
I remember my mortgage being 15.5%. How did we survive?!
by borrowing comparatively a lot less than what 'we' borrow' nowadays
Indeed, although I'd say most struggled as much or more than these days in the paying even though proprtianelty we borrowed less.
My first house was £80k, I borrowed £70k and at the time earned about 18k. I was luckier than most as worked for a building society so got a 5% mortgage interest only paying a bit under £300 a month rather than the £700 it should have been. My take home pay from memory was about £1200 a month but with overtime & second job I'd get £1600 in all.
Do people still do second jobs? In the early 90's it was the only way I saved a deposit and lived 'ok'....
I have the opportunity to work overtime which is always preferable as you get mullered for tax on a second income. However when I was saving for my first place I turned my hand to anything if a pound note was involved and I still do.
I took every call out, every second of overtime and did a few things on the side too and remarkably quickly I had a deposit
I'd recommend getting a mortgage broker too. I bought my first house in October with a 5% deposit, I visited all the high street banks and thought I'd got myself a good deal (RBS), Yorkshire were a close second. Then the deal fell through and RBS became pretty useless as their mortgage advisor left the company without telling us so we visited a mortgage broker and got an even better deal than before!
Also the mortgage broker was always available on the phone/email and helped me out with any questions I had regarding the solicitor which can be quite daunting when dealing with it for the first time.
Also just to add, the mortgage broker charged nothing for going to see them but if we took one of their offers there was a £500 fee but most the offers included about £750 cashback so it paid for itself.
I remember my mortgage being 15.5%. How did we survive?!
by borrowing comparatively a lot less than what 'we' borrow' nowadays
Indeed, although I'd say most struggled as much or more than these days in the paying even though proprtianelty we borrowed less.
My first house was £80k, I borrowed £70k and at the time earned about 18k. I was luckier than most as worked for a building society so got a 5% mortgage interest only paying a bit under £300 a month rather than the £700 it should have been. My take home pay from memory was about £1200 a month but with overtime & second job I'd get £1600 in all.
Do people still do second jobs? In the early 90's it was the only way I saved a deposit and lived 'ok'....
I have the opportunity to work overtime which is always preferable as you get mullered for tax on a second income. However when I was saving for my first place I turned my hand to anything if a pound note was involved and I still do.
I took every call out, every second of overtime and did a few things on the side too and remarkably quickly I had a deposit
If you want to buy a house, then THIS.
Nothing like a 12 hour day job then another 4 hours working in a pub to get that deposit together.
I remember my mortgage being 15.5%. How did we survive?!
by borrowing comparatively a lot less than what 'we' borrow' nowadays
Indeed, although I'd say most struggled as much or more than these days in the paying even though proprtianelty we borrowed less.
My first house was £80k, I borrowed £70k and at the time earned about 18k. I was luckier than most as worked for a building society so got a 5% mortgage interest only paying a bit under £300 a month rather than the £700 it should have been. My take home pay from memory was about £1200 a month but with overtime & second job I'd get £1600 in all.
Do people still do second jobs? In the early 90's it was the only way I saved a deposit and lived 'ok'....
I do and have done for about 12 years. Only way I can afford "luxuries" like England and Charlton.
If you are starting out and can afford a 5 year fix I'd do it, yes you can take a cheaper rate but that needs to be balanced against affordability if rates go up. I'd work on the basis of rates being 1-1.25% higher in 3 years time, do the math and see what comes out.
Many of us can remember double digit interest rates, it can be painful!
That's the dilemma I'm facing. 2/3 year fixed or pay £150 a month more for 5 years fixed. If I take the 2 or 3 year one I can make overpayments every month and start eating into it. It's all a lottery and comes down to your risk appetite I guess and luck.
Our fixed rate was up in March. Very easy to research all the deals these days . I did speak to about 3 banks though and in the end just stuck with the same provider and grabbed the 5 years at 1.79% they were offering us. Fairly pleased with that deal and if we lose out it surely wont be that much?
If you are starting out and can afford a 5 year fix I'd do it, yes you can take a cheaper rate but that needs to be balanced against affordability if rates go up. I'd work on the basis of rates being 1-1.25% higher in 3 years time, do the math and see what comes out.
Many of us can remember double digit interest rates, it can be painful!
Rates wont be going up for at least another 18 months & when they do only by 0.25% - 0.5%. A 2/3 year fixed at 0.5% above a tracker rate will be at best neutral over that period.
as you write @The Organiser unsolicited 'reviews' are usually reserved for dissatisfied customers .. we live in a time of 'computer says no/yes', if there are IT problems, and all too often there are with smaller outfits, then sometimes service can be slow and unsatisfactory
A mortgage broker is looking to get you a deal that is good, and wants to arrange things well enough to justify their fee that you will go for. You can research and compare if you want, but as has been said above, if a cashback deal covers their fee, and the mortgage is one that is affordable or saves you money, then they smooth things over and save you hassle.
some brokers will charge a fee & some will just rely on the fee they get from the lender. I believe that I am in the small minority that does the latter. The Company I work for says that I should charge a fee & the minimum is £1k - I have never done that as I'm lucky enough to have decent clients that often buy expensive houses (and thus large mortgages) & the fees will usually cover this minimum charge. In the few occasions it doesn't I hope that there will be repeat business, referrals or subsequent other "sales" such as insurance, pensions, savings etc which will offset this shortfall.
If you are starting out and can afford a 5 year fix I'd do it, yes you can take a cheaper rate but that needs to be balanced against affordability if rates go up. I'd work on the basis of rates being 1-1.25% higher in 3 years time, do the math and see what comes out.
Many of us can remember double digit interest rates, it can be painful!
Rates wont be going up for at least another 18 months & when they do only by 0.25% - 0.5%. A 2/3 year fixed at 0.5% above a tracker rate will be at best neutral over that period.
I'm not sure I'd be quite so confident on this given the upward trends in inflation, the likely lagged effects of the weak pound (implying more inflation to come) and the possibility for the pound to move even lower on Brexit/election concerns (implying even more inflationary pressure).
Most economists view the BoE's sudden 0.25% cut post-Brexit as completely unnecessary with hindsight so a reversal of this move is very likely in my view in the short-term.
Purchased my house using a help to buy equity loan (where the government provide a 20% deposit). Have heard that these are a nightmare when it comes to remortgaging. My current 2 year fix deal ends in around 10 months time and am getting worried that i will not be able to get a remortgage at the same rate i had upon purchase (1.84%).
Anyone else in a similar position and can provide some comfort/more information?
Comments
Many of us can remember double digit interest rates, it can be painful!
My first house was £80k, I borrowed £70k and at the time earned about 18k. I was luckier than most as worked for a building society so got a 5% mortgage interest only paying a bit under £300 a month rather than the £700 it should have been. My take home pay from memory was about £1200 a month but with overtime & second job I'd get £1600 in all.
Do people still do second jobs? In the early 90's it was the only way I saved a deposit and lived 'ok'....
I took every call out, every second of overtime and did a few things on the side too and remarkably quickly I had a deposit
Nothing like a 12 hour day job then another 4 hours working in a pub to get that deposit together.
If I take the 2 or 3 year one I can make overpayments every month and start eating into it. It's all a lottery and comes down to your risk appetite I guess and luck.
You can research and compare if you want, but as has been said above, if a cashback deal covers their fee, and the mortgage is one that is affordable or saves you money, then they smooth things over and save you hassle.
Most economists view the BoE's sudden 0.25% cut post-Brexit as completely unnecessary with hindsight so a reversal of this move is very likely in my view in the short-term.
Anyone else in a similar position and can provide some comfort/more information?