So I've been recommended a mortgage by an advisor from the mortgage broker London & Country, which on the face of it seemed alright but now I've thought about it and done some maths I'm beginning to think it's going to cost us hundreds of pounds compared with other deals. I can't speak to them right now so I'm double, triple, quadruple checking my maths so I can jump up and down on him when they're back in on Tuesday. I'm really just after some people to confirm/correct me as I've started to get a little tunnel vision after comparing a billion million deals.
Requirements are as follows:
Loan of £145,000
LTV @ 74.4%
2 year fix
We're first time buyers.
Now unfortunately due to a mix up with a mobile phone contract coming to an end we have a late payment on our credit record that doesn't sit well with quite a few lenders, meaning we're outside their lending criteria. From what I hear Halifax don't mind this sort of thing, and the advisor at London & Country agreed after seeing our credit file.
His recommendation is:
Halifax homemover @ 2.14%, 2 year (27 month) fix, 30 year term.
£650 fees (£355 valuation, £295 administration fee)
£0 product fee.
This works out at being...
Payments - 27*£545 = £14,715
+
Admin + valuation fee - £650
= total payable - £15,365 over the 2 year fixed term
The product is exclusive to them and can be found here as "FAJ102"
When looking at it in isolation it sounded good, low rate, no product fee etc. However, my maths yesterday and today shows it as being clearly more expensive than not only deals I can get by going direct to Halifax, but also more expensive than deals that are available to intermediaries!
What it comes down to is that Halifax currently have a cashback deal of 1% of the loan amount, equating to £1,450 in my case. Obviously the homemover product I've been recommended does not offer this 1% cashback incentive, as it is for first time buyers only. When taken in to account over the 2 year (actually 27 months) term, the FTB products that offer cashback seem to save hundreds over the homemover product I've been recommended.
Examples of FTB products available through Halifax Intermediaries that have the cashback:
2.09% + £999 fee
Payments: 27*541 = 14,607
+
Fees: £650 + £999 product fee = £16,256
-
Cashback: £1,450
=
Total payable £14,806 over 27 month term
vs £15,365 recommendation = £559 saving
2.29%+ £999 fee
Payments: 27*556 = 15,012
+
Fees: £650 + £999 product fee = £16,661
-
Cashback: £1,450
=
Total payable £15,211 over 27 month term
vs £15,365 recommendation = £154 saving
2.49% + £0 fee
Payments: 27*571 = 15,417
+
Fees: £650 = £16,067
-
Cashback: £1,450
=
Total payable £14,617 over 27 month term
vs £15,365 recommendation = £748 saving
2.69% + £0 fee
Payments: 27*586 = 15,822
+
Fees: £650 = £16,472
-
Cashback: £1,450
=
Total payable £15,022 over 27 month term
vs £15,365 recommendation = £343 saving
That's all of the suitable first time buyer products that halifax intermediaries offer, and all seem to leave me with money in my pocket compared with the homemover product, due to the pretty significant cashback.
Now there are even better deals to be had when applying for a product directly through Halifax instead of an intermediary, however that's a different point altogether as it's something that London and Country don't have access to. It's something I'll be considering alongside attempting to get the mortgage advisor to explain his recommendation.
So can anyone see any reason as to why I've been recommended the homemover product? My guess is the cashback simply hasn't been taken in to account.
Please excuse my formatting
Requirements are as follows:
Loan of £145,000
LTV @ 74.4%
2 year fix
We're first time buyers.
Now unfortunately due to a mix up with a mobile phone contract coming to an end we have a late payment on our credit record that doesn't sit well with quite a few lenders, meaning we're outside their lending criteria. From what I hear Halifax don't mind this sort of thing, and the advisor at London & Country agreed after seeing our credit file.
His recommendation is:
Halifax homemover @ 2.14%, 2 year (27 month) fix, 30 year term.
£650 fees (£355 valuation, £295 administration fee)
£0 product fee.
This works out at being...
Payments - 27*£545 = £14,715
+
Admin + valuation fee - £650
= total payable - £15,365 over the 2 year fixed term
The product is exclusive to them and can be found here as "FAJ102"
When looking at it in isolation it sounded good, low rate, no product fee etc. However, my maths yesterday and today shows it as being clearly more expensive than not only deals I can get by going direct to Halifax, but also more expensive than deals that are available to intermediaries!
What it comes down to is that Halifax currently have a cashback deal of 1% of the loan amount, equating to £1,450 in my case. Obviously the homemover product I've been recommended does not offer this 1% cashback incentive, as it is for first time buyers only. When taken in to account over the 2 year (actually 27 months) term, the FTB products that offer cashback seem to save hundreds over the homemover product I've been recommended.
Examples of FTB products available through Halifax Intermediaries that have the cashback:
2.09% + £999 fee
Payments: 27*541 = 14,607
+
Fees: £650 + £999 product fee = £16,256
-
Cashback: £1,450
=
Total payable £14,806 over 27 month term
vs £15,365 recommendation = £559 saving
2.29%+ £999 fee
Payments: 27*556 = 15,012
+
Fees: £650 + £999 product fee = £16,661
-
Cashback: £1,450
=
Total payable £15,211 over 27 month term
vs £15,365 recommendation = £154 saving
2.49% + £0 fee
Payments: 27*571 = 15,417
+
Fees: £650 = £16,067
-
Cashback: £1,450
=
Total payable £14,617 over 27 month term
vs £15,365 recommendation = £748 saving
2.69% + £0 fee
Payments: 27*586 = 15,822
+
Fees: £650 = £16,472
-
Cashback: £1,450
=
Total payable £15,022 over 27 month term
vs £15,365 recommendation = £343 saving
That's all of the suitable first time buyer products that halifax intermediaries offer, and all seem to leave me with money in my pocket compared with the homemover product, due to the pretty significant cashback.
Now there are even better deals to be had when applying for a product directly through Halifax instead of an intermediary, however that's a different point altogether as it's something that London and Country don't have access to. It's something I'll be considering alongside attempting to get the mortgage advisor to explain his recommendation.
So can anyone see any reason as to why I've been recommended the homemover product? My guess is the cashback simply hasn't been taken in to account.
Please excuse my formatting
