Any experience with Mortgage House loans?

K

Kaliani

Hi all
Apologies, this is not an investment property question. We are about to take on a very large loan (for our PPoR). Have pre approval with Mortgage House, but have just seen on a product review website some terrible reviews. All seem to be from people with small deposits or self employed etc. We have regular well paid jobs and a 30% deposit,

Anyone have any experience with Mortgage House as a lender? Noone I know has heard of them. I'm feeling very nervous but don't know where to turn to find anyone who has used them.

Thanks in advance.
 
Hi,

I am a Mortgage Broker with Choice, i.e Choice Broker.

In 2009 I was a Brand Partner with Mortgage House for a total of 9 months.

I would be happy to answer your questions but would only do so offline.

Sorry can't say any more here.

Cheers,
:confused::(
 
I don't have any experience with them but why did you initially go with them?

With good jobs and deposit it's highly likely that you would be better off with a Tier 1 or 2 provider.

Have a chat with another broker and get a second opinion.
 
Thanks. We went with them as we are borrowing to our limit and they offered a really good fixed rate loan of 4.64% for 2 years.

Unfortunately we had two previous pre approvals with other lenders (which we passed on as rates not as favourable) so can't go elsewhere as i've heard this mucks up the credit file. (i.e. to have too many enquiries on the credit file).
 
Oh, and we have pre approval with ING, and a good fixed rate. But the rate lock in period we paid for expires 2 weeks before we would have to settle on this house. So we were forced to try another lender. ING won't extend it.
 
Hi,

On the surface 4.64% fixed for two years seem good, just check what it reverts back to after this period.

Of course you can always refinance after this period.

Cheers,
 
Kaliani said:
Thanks. We went with them as we are borrowing to our limit and they offered a really good fixed rate loan of 4.64% for 2 years.

Unfortunately we had two previous pre approvals with other lenders (which we passed on as rates not as favourable) so can't go elsewhere as i've heard this mucks up the credit file. (i.e. to have too many enquiries on the credit file).
Click to expand...

So does it come with things like 100% offset, IO etc?

The Y-man
 
Kaliani said:
Oh, and we have pre approval with ING, and a good fixed rate. But the rate lock in period we paid for expires 2 weeks before we would have to settle on this house. So we were forced to try another lender. ING won't extend it.
Click to expand...

A proper pre-approval will answer 98% of the questions around finance. A second pre-approval will answer the same 98% of questions.

Unless your circumstances have changed, there's no point in getting a second pre-approval. If you want to borrow more the person who assisted with the first pre-approval should be able to tell you quite easily if that's okay or not.

It's also fairly pointless to commit to a rate lock on a pre-approval. It only puts pressure on you to make a hasty decision which may cost you far more than the rate lock was worth.
 
Hi Y-Man. It comes with 100% offset, ability to make extra payments etc.
http://mortgagehouse.com.au/home-loans/Advantage-2-Year-Fixed-Rate-Home-Loan

PT Bear. Thanks. ING are offering about 15k less than Mortgage House.

We live and learn with the rate lock in. We will be out but about 3.5 weeks of the lock in period as the vendors want a 90 day settlement. I asked ING to extend it which they won't. Seems silly as they will probably lose our business on that point alone. We could deal with the smaller loan offering and slightly higher rate but we don't want to risk the fixed rate rising.
 
Offer a 60 day settlement and the vendors can rent the property back from you for a month.

If that's not the solution, then figure out what the problem is and get creative. It's fairly rare in my experience that a vendor wants 90 days over 60 and it's hard to figure out a reason why it would inconvenience the vendor to have the money a month earlier.
 
Kaliani said:
Hi Y-Man. It comes with 100% offset, ability to make extra payments etc.
http://mortgagehouse.com.au/home-loans/Advantage-2-Year-Fixed-Rate-Home-Loan

PT Bear. Thanks. ING are offering about 15k less than Mortgage House.

We live and learn with the rate lock in. We will be out but about 3.5 weeks of the lock in period as the vendors want a 90 day settlement. I asked ING to extend it which they won't. Seems silly as they will probably lose our business on that point alone. We could deal with the smaller loan offering and slightly higher rate but we don't want to risk the fixed rate rising.
Click to expand...

Just be careful, it doesn't say it has a 100% offset account is says:
with all the benefits of a transactional 100% offset account
Click to expand...

Because this is a non-bank lender there may not be a true offset account available, but instead it may be a redraw type account - which appears to the average person of haivng "all the benefits" bu may not actually because of the potential tax issues.
 
PT_Bear: They are an old couple - the man is 90. They want to buy a place very close to their kids. they are anxious to have time to find somewhere. We offered exactly as you suggested - 60 settlement and to rent it back to them for as long as they need it. But they refused and said they had been there 50 years and could wait longer for another buyer.
I've run out of ideas on that front.
 
I'm not sure why you would keep going for pre-approvals when banks are upfront about their fixed rates, why apply if you didn't like their fixed rates?

3 applications is not the end of the world if you have an explanation for it but don't feel cornered into the deal if that is the only reason you are sticking with them. If you don't want to go with this lender then don't but stop applying around, go see a good broker and get some good upfront advice and then decide what to do
 
thanks for all that.
The Offset is not a big issue for us as we won't really have extra funds to place in an offset anyway. Hence needing to secure a low fixed rate loan. Once the 2 year fixed rate period is up, those extras might come into play as we consider refinancing.

Westminster: Thanks. Yes, good point. The reason for the series of pre approvals was that we have been looking for 3 years and weren't originally looking at fixed rates. Then the market boomed late last year and we found ourself almost priced out of the area we wanted to buy - so have upped our budget substantially and now need the certainty of a fixed rate. So we went to ING who offered good rates. But they have been very slow and kept changing the amount they said they'd lend, and have dragged it out for 10 days now in terms of getting the unconditional approval. At one stage late last week they had reduced the amount they were promising to below what we would need to settle. At that point we went to Mortgage House to see what they would offer.
In the meantime ING have offered a bit more, but not quite as much. And we now have the issue with them of the rate lock period expiring prior settlement.

Next time we will certainly use a broker. Lesson learned! No experience with this stuff.
 
Kaliani said:
thanks for all that.
The Offset is not a big issue for us as we won't really have extra funds to place in an offset anyway. Hence needing to secure a low fixed rate loan. Once the 2 year fixed rate period is up, those extras might come into play as we consider refinancing.
Click to expand...

In that case make sure your loan is IO and don't pay any of the principle off for now.

The Y-man
 
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