As they say, 'the proof is in the pudding!' Yum!
There is a good chance you will have read elsewhere on this site that we get you the best deal available
from the whole of the market.
You have probably read that we have some 80 lenders available and just over 8,000 deals to choose from.
We also shop around, using 15 insurers, to get you great value on your mortgage related insurances.
All impressive I am sure, but what does it mean in reality?
Well ........... judge for yourself.
Let's put Mortgage Solutions to the test. We sent out a real mystery shopper to compare what's on offer!
It cost us lunch.
PLACE: BRADFORD CITY CENTRE DATE: NOVEMBER 2010 WEATHER: RAIN & COLD
The Senario
So we have a real mystery shopper going out to a High Street Bank in Bradford to get the best deal they have available.
This happens every day. The mystery shopper already does her banking with the lender in question so she expects them to offer her some sort of 'special' deal.
She earns £21,000pa. She has a clean credit history. First Time Buyer. Single. No financial commitments. Deposit of £15,000 which her dad has given her on her 24th Birthday to get her started. She has seen a house at £90,000 that she wants to buy.
The Bank
The bank agreed to lend her 85% loan to value as that is the maximum they currently lend post 'credit crunch' to anyone.
They have told her she can have £76,500 over 25 years on a capital & interest basis (repayment).
They only have 1 deal available at 85% which is a 3 year fixed rate deal at 5.79% (APR 5.4%)
The deal has an arrangement fee of £999.
The mortgage payment is £488.79pm
If they stayed with this lender for the full 25 years and interest rates never changed they would pay back £136,660 over 25 years. The total charge for credit would be £60,160.
The figures in this section will vary following interest rate changes and if they do not keep the mortgage for 25 years.
Only use the figures quoted to compare the cost with another repayment mortgage.
The Bank quoted insurances, all from 1 provider that they are tied to.
Home insurance £42.79pm
Mortgage Payment Protection Insurance £37.62pm
Life & Critical Illness Cover £18.51pm
Total Mortgage & Insurance Payment from Bank = £587.71pm
Mortgage Solutions
To play fair, we matched the criteria that the bank had put before them, otherwise what's the point?
Firstly, our search came back with 481 deals available to her, including cheaper 'trackers'.
But, lets compare directly what the bank had, only Fixed rates with a £999 fee or lower.
Now we have a choice of 343 Fixed Rates, of which 64 are Fixed for 3 Years.
Our best deal is a 3 year Fix at 4.74%, with a £999 arrangement fee.
The mortgage payment is £435.70pm. (4.5% APR)
If they stayed with this lender for the full 25 years and interest rates never changed they would pay back £125,482 over 25 years. The total charge for credit would be £48,982.
The figures in this section will vary following interest rate changes and if they do not keep the mortgage for 25 years.
Only use the figures quoted to compare the cost with another repayment mortgage.
We quoted insurances from our panel of 10 providers.
Home Insurance £31.16pm
Mortgage Payment Protection Insurance £28.71pm
Life & Critical Illness Cover £9.61pm
Total Mortgage & Insurance Payment from Mortgage Solutions = £505.18pm
That's a saving of £82.53pm.
Over 3 years that is just under £3,000.
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