Project Description

This case study is for illustrative purposes only and does not constitute advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.

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!”