Project Description
John and Amy’s visit
John and Amy advised me that they were going direct to their own lender for their mortgage, and didn’t want further advice. After a few more questions, Amy told me that they were borrowing £95,000 and had found and “amazing deal” themselves. John elaborated “Yes, it’s at just 1.29%, fixed for two years and the monthly payments are only £449.30!”
I asked if there were any fees involved. “Well” said Amy “We’ll need to pay an upfront valuation fee of £325 and an arrangement fee of £999, but really, we don’t need any advice to know that we’ve bagged a bargain!”
What we did
I was pleased for them, but decided to look a little deeper. After looking at some options for them, I can point them in the direction of a 2-year fixed rate at 1.59% with a monthly payment of £462. Now, I know that that looks more expensive initially, but it also comes with no valuation fee and no arrangement fee.
Saving £999 and £325 in fees, for an extra cost of £13 per month means that, over 24 months, Amy and John save £1,000, just by taking advice.
“Don’t buy on price, without taking advice!”
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