Reply to: House purchase - 10% deposit versus 20% and other factors

[northernladuk]

I would say the fee is worth it but my opinion is from an investor POV where I have needed multiple mortgages over time. Freelancer Financials gets my vote every time.

Ultimately you get what you pay for.

Absolutely this. Same experience for me and no regrets.

[dx4100]

I tried all the contractor brokers and, after their fees, all of the products offered were more expensive than going direct to Halifax, all of whom's staff are trained to accept contractors. There's even an option for it when you apply for a mortgage online.

Always question what you're told.

Interesting to know! cheers

[ChimpMaster]

Sorry to hijack this thread, but I wanted to ask if you are using a "mortgage broker" and if so, is there any fee to be paid to the broker?

I'm trying to compile a list of brokers who don't charge any fee to the client but instead get their commission from the bank.

Thanks!

I would say the fee is worth it but my opinion is from an investor POV where I have needed multiple mortgages over time. Freelancer Financials gets my vote every time.

Ultimately you get what you pay for.

[PerfectStorm]

Sorry to hijack this thread, but I wanted to ask if you are using a "mortgage broker" and if so, is there any fee to be paid to the broker?

I'm trying to compile a list of brokers who don't charge any fee to the client but instead get their commission from the bank.

Thanks!

I tried all the contractor brokers and, after their fees, all of the products offered were more expensive than going direct to Halifax, all of whom's staff are trained to accept contractors. There's even an option for it when you apply for a mortgage online.

Always question what you're told.

[northernladuk]

Sorry to hijack this thread, but I wanted to ask if you are using a "mortgage broker" and if so, is there any fee to be paid to the broker?

I'm trying to compile a list of brokers who don't charge any fee to the client but instead get their commission from the bank.

Thanks!

But are you sure those brokers understand contractors and have access to the contractor friendly products? Do those products actually pay commission?

[AnotherGuy]

Sorry to hijack this thread, but I wanted to ask if you are using a "mortgage broker" and if so, is there any fee to be paid to the broker?

I'm trying to compile a list of brokers who don't charge any fee to the client but instead get their commission from the bank.

Thanks!

[PerfectStorm]

By the way of the Halifax rate seems a little high - it's because the fee is 500 (rather than 1000) and you get £2000 cashback in the first month

[northernladuk]

And a very timely article....

Corporate Charges Set to Rise - Contractor Weekly

Budget 2016 announced that the corporate charge (s.455 charge) on loans to participators will rise from 25% to 32.5% as from 6th April 2016, so as to prevent an unfair tax advantage being obtained by taking a loan from the company rather than salary or a dividend. The new rate applies to loans, advances and arrangements made on or after 6th April 2016.

[WTFH]

It's a shame the rates on the loan offered is 2.54% or 2.34%

Never let the facts get in the way.

[eek]

Just recheck my numbers:
1st year the interest is 36.7% of the total re-payment.
Interest is 1.84% for 2 years.

Anyway, OP, pay as much as you can as deposit.

It's a shame the rates on the loan offered is 2.54% or 2.34%

[garnet]

Just recheck my numbers:
1st year the interest is 36.7% of the total re-payment.
Interest is 1.84% for 2 years.

Anyway, OP, pay as much as you can as deposit.

[WordIsBond]

it shows that the other poster doesn't know their coccyx from their radius.

Anyone who has been paying attention to him previously knew that already. But at least he posts with great certainty. Ignorance with certainty, it's glorious. Since my arrogance takes a hit every time I do something stupid, I appreciate people like him (he's not the only one) who restore the balance from time to time and help me feel superior again.

Forward! (I guess)

[WTFH]

It was just an interesting number puzzle, but it shows that the other poster doesn't know their coccyx from their radius.


As for this job offer, I guess you need 2 references...

[WordIsBond]

I've just played with a few figures. To hit 33% in the first year, the interest rate needs to be approx 1.7% on a 25 year, or 2% on 20 years.

I was too lazy to figure that out. Far better as I get old, fat, and complacent to just throw the general principle out there and have somebody who works for me nail down the details.

Want a job?

I'll give myself credit, I DID do the calcs for OP's case since the specifics might actually matter to someone's actual life, though. I'm not THAT lazy if things actually matter. I do things like this occasionally so I can pat myself on the back that I really am not totally worthless to mankind, at least not always. Now, I can go back to being my reprehensible and lazy self for a few days without feeling too much remorse, all because of a few calculations on the Internet. Ain't life grand?

[WTFH]

House purchase - 10% deposit versus 20% and other factors

Yes. This isn't hard to calculate. And you'd need a very short mortgage or a very low interest rate to be paying only 33% in interest in the first year.

I've just played with a few figures. To hit 33% in the first year, the interest rate needs to be approx 1.7% on a 25 year, or 2% on 20 years.

As for your other calculations, they are a bit more accurate than mine - I went for 40k instead of 38k on the deposit just to make it easier.