First time mortgage

23
Found 16th Nov 2017
Hello looking at taking out a first time mortgage:

Have been quoted in my bank: 1.4% interest with my bank natwest on 2 year fixed rate.... fees 995, plus 248 survey. £250 cash back.


Alternatively I walked into a broker today, and got quoted this:

Nationwide 1.99% for a fixed rate 5 year mortgage with no fees and survey free. Broker wants £299 but it's £500 cash back.

Does it sound reasonable to take the nationwide option? Are these good rates?

It's a right to buy mortgage of £62,500.

Thanks. Tim
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Can’t be much of a survey for that price, is it just a valuation survey? Don’t you want a house buying survey as a minimum (or structural survey depending on type and age of build) for your own piece of mind
Original Poster
Yes it's a valuation survey.

It's a council flat, was last bought by the council for £109,000) 3 years ago. Now we're buying it back off them.

I'm going to "risk it" without a survey.

Tim
timmyboy14721 m ago

Yes it's a valuation survey. It's a council flat, was last bought by the …Yes it's a valuation survey. It's a council flat, was last bought by the council for £109,000) 3 years ago. Now we're buying it back off them.I'm going to "risk it" without a survey.Tim


You may find you have to have a survey as a stipulation of the mortgage. The lender needs to know the house is structurally sound. Depends on the age and condition of the property as to which is most appropriate. Valuation is fine for a fairly new place but if it is older you need to know about damp, wiring, plumbing, condition of the roof, the Windows, the joists etc.
Hi Timmy, I'm a NatWest mortgage advisor. I'd say calculate the difference between the deals (as in monthly payment) & then consider whether you want to have the lower payment but have to renegotiate in 2 years vs having the longer term stability of 5 years. Mortgage rates are on the up & will likely continue that trend. Feel free to pick my brains if you have any other questions
It's only about £16 per month less on the NatWest deal, plus there are more fees & less cashback. Brokers do tend to get better deals.

Assuming you plan to live there for next 5 years & being your first mortgage I'd say go for the Nationwide deal
Original Poster
jp201610 m ago

Hi Timmy, I'm a NatWest mortgage advisor. I'd say calculate the difference …Hi Timmy, I'm a NatWest mortgage advisor. I'd say calculate the difference between the deals (as in monthly payment) & then consider whether you want to have the lower payment but have to renegotiate in 2 years vs having the longer term stability of 5 years. Mortgage rates are on the up & will likely continue that trend. Feel free to pick my brains if you have any other questions


Hi that's very kind. I think I kind of know what I'm going todo.

I noted NatWest 5 years fixed is something like 3%+ interest.

I like NatWest and my partner and I both bank with you but I think we are going to go with nationwide as it's more competitive with the free fees and £500 cash back.

Thank you for taking the time to respond back. 1.99% on 5 years I think we're quite happy with that.
Original Poster
psychobitchfromhell23 m ago

You may find you have to have a survey as a stipulation of the mortgage. …You may find you have to have a survey as a stipulation of the mortgage. The lender needs to know the house is structurally sound. Depends on the age and condition of the property as to which is most appropriate. Valuation is fine for a fairly new place but if it is older you need to know about damp, wiring, plumbing, condition of the roof, the Windows, the joists etc.


Thank you for that piece of information. I have made another appointment for tomorrow at the brokers, think we are going to go with them and then see what happens after that.

Any idea how much a survey is likely to cost if I do indeed need one?

Thanks Tim
Original Poster
jp20164 m ago

It's only about £16 per month less on the NatWest deal, plus there are …It's only about £16 per month less on the NatWest deal, plus there are more fees & less cashback. Brokers do tend to get better deals. Assuming you plan to live there for next 5 years & being your first mortgage I'd say go for the Nationwide deal


Thank you my feelings exactly.
No worries & good luck with it all
timmyboy1471 h, 56 m ago

Yes it's a valuation survey. It's a council flat, was last bought by the …Yes it's a valuation survey. It's a council flat, was last bought by the council for £109,000) 3 years ago. Now we're buying it back off them.I'm going to "risk it" without a survey.Tim


No lender will give you a mortgage without a survey of some description.

The 5 year deal is the better deal. 2 x £995 for 2 lots of 2 year fixed plus an exit fee if you move lender after the 1st 2 year period is pretty normal. With Brexit and rates only going one way it just makes sense.
timmyboy1471 h, 17 m ago

Thank you for that piece of information. I have made another appointment …Thank you for that piece of information. I have made another appointment for tomorrow at the brokers, think we are going to go with them and then see what happens after that.Any idea how much a survey is likely to cost if I do indeed need one?Thanks Tim


It depends on the level of survey. £200-£250 is fine for a valuation survey but a full structural could be double easily. The lender has to be sure they will get their money back if they have to foreclose on you. If it is ex council, they are usually built to last and you will be fine with the basic. If you are buying a fixer-upper or something at auction or that seems too cheap to be real them go the full Monty.
timmyboy1471 h, 16 m ago

Thank you my feelings exactly.

i first read this incorrectly as the nationwide rate being 1.19%, which would look to be the better deal immediately.

as jp2016 is a mortgage advisor, i would go with what he says as he has probably done the maths and has a better understanding of how mortgage rates will be following base rate rises, which will be rising slowly over the next 5 years.
I hope that's not mortgage advice coming from an advisor on here without going through a full 3 hour interrogation... I mean interview
Edited by: "EdinburghShop85" 16th Nov 2017
jp201610 h, 56 m ago

Hi Timmy, I'm a NatWest mortgage advisor. I'd say calculate the difference …Hi Timmy, I'm a NatWest mortgage advisor. I'd say calculate the difference between the deals (as in monthly payment) & then consider whether you want to have the lower payment but have to renegotiate in 2 years vs having the longer term stability of 5 years. Mortgage rates are on the up & will likely continue that trend. Feel free to pick my brains if you have any other questions


Hi, just one quick question:
What is your best rate for a 5y fix, 47%ltv
I'm with NW Already, but eligible to switch now.
I have seen quite a few different options on comparison websites.
Is it possible to negotiate anything? Get any discounts/ better deals?
Thanks!
The nationwide deal is much better

Much better company too
I was with Natwest - when I changed to Nationwide I got whacked with a large fee that was hidden in the smallprint - thanks Natwest!
Original Poster
Bigfootpete1 h, 32 m ago

I was with Natwest - when I changed to Nationwide I got whacked with a …I was with Natwest - when I changed to Nationwide I got whacked with a large fee that was hidden in the smallprint - thanks Natwest!


That's scary.
Original Poster
ataritheone5 h, 17 m ago

Hi, just one quick question: What is your best rate for a 5y fix, …Hi, just one quick question: What is your best rate for a 5y fix, 47%ltvI'm with NW Already, but eligible to switch now.I have seen quite a few different options on comparison websites.Is it possible to negotiate anything? Get any discounts/ better deals? Thanks!


What are you currently paying?
Are you already on 5 years?
Bigfootpete2 h, 52 m ago

I was with Natwest - when I changed to Nationwide I got whacked with a …I was with Natwest - when I changed to Nationwide I got whacked with a large fee that was hidden in the smallprint - thanks Natwest!


A fee hidden in the small print should only be exit fee which is not considered large or an early redemption charge that most certainly is not considered small print. Was it something else?
OllieSt16 m ago

A fee hidden in the small print should only be exit fee which is not …A fee hidden in the small print should only be exit fee which is not considered large or an early redemption charge that most certainly is not considered small print. Was it something else?



It was an exit fee, I was out of the fixed term into the variable rate, I was around the £2k mark so I was not happy.
Bigfootpete54 m ago

It was an exit fee, I was out of the fixed term into the variable rate, I …It was an exit fee, I was out of the fixed term into the variable rate, I was around the £2k mark so I was not happy.


Wow that is incredibly high, and I don't blame you for being unhappy. I would make a complaint. Typically they are £75 - £300 and are never mentioned

Have a look here and the links in the article


It's an administration fee, and £2000 does not seem reasonable at all.

If you are 100% sure that those fees were for nothing more than an exit fee I would imagine you have a very good chance of getting a refund. Small print has to be reasonable and inline with other lenders.
Edited by: "OllieSt" 17th Nov 2017
OllieSt2 h, 4 m ago

Wow that is incredibly high, and I don't blame you for being unhappy. I …Wow that is incredibly high, and I don't blame you for being unhappy. I would make a complaint. Typically they are £75 - £300 and are never mentioned Have a look here and the links in the articleIt's an administration fee, and £2000 does not seem reasonable at all.If you are 100% sure that those fees were for nothing more than an exit fee I would imagine you have a very good chance of getting a refund. Small print has to be reasonable and inline with other lenders.


Thanks, I'll check it out.
timmyboy1475 h, 6 m ago

What are you currently paying?Are you already on 5 years?


No, not yet. I' on variable rate
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