Building Society or Bank for mortgage?
Discussion
AJI said:
In the current UK financial situation would it be best to be looking at Building Societies or a bank for a mortgage?
(First-time buyer)
Asking for a mate of mine by the way.
He is looking at a £190,000 property and I think he mentioned a £40,000 deposit.
In what context is he asking? eg what is he concerned about? (First-time buyer)
Asking for a mate of mine by the way.
He is looking at a £190,000 property and I think he mentioned a £40,000 deposit.
Is he concerned about a bank/BS collapsing?
Is he concerned about actually getting a mortgage approved?
Is he unsure as to who offers the better rates?
Sarnie said:
In what context is he asking? eg what is he concerned about?
Is he concerned about a bank/BS collapsing?
Is he concerned about actually getting a mortgage approved?
Is he unsure as to who offers the better rates?
Having just spoken to him again he mentions about wanting the best rates and the least 'admin fees' (set-up fees, any on-going mortgage management fees and mortgage end of term fees), also if he were to go for any type of tracker or variable rate mortgage then would a Building Society be a better 'bet' in terms of how much they'd likely increase rates over the next 15-20 years?Is he concerned about a bank/BS collapsing?
Is he concerned about actually getting a mortgage approved?
Is he unsure as to who offers the better rates?
So if I've managed to get all of his concerns in a list it would look like this:
- initial offer rates
- rest of term variable vs tracker vs fixed
- admin fees (set up, any ongoing through the term and final end of term)
- he also mentioned penalties (ie. monthly over payments, or re-mortgaging with a different provider etc.)
walm said:
Those concerns are perfectly normal concerns for most people getting a mortgage.
The source of the mortgage (Bank or BS) has literally never crossed my mind before.
Why on earth would you care?
Exactly my thoughts.The source of the mortgage (Bank or BS) has literally never crossed my mind before.
Why on earth would you care?
In 12 years of being in the industry I've never had anyone ask this question. To answer the OP's questions, they are natural questions to ask but the answers are not specific to which type organisation of organisation is offering the product.
If your friend want some specific help or product guidance feel free to send him my email address and I'd happily have a chat with him
walm said:
Those concerns are perfectly normal concerns for most people getting a mortgage.
The source of the mortgage (Bank or BS) has literally never crossed my mind before.
Why on earth would you care?
'tis the whole point of the thread no?The source of the mortgage (Bank or BS) has literally never crossed my mind before.
Why on earth would you care?
Is there anything to care about.....is a bank going to be 'better' or 'worse' than a Building Society as a mortgage provider?
If its common opinion that there are no differences, ie. you get the same deal from both, then I'll pass this on.
Just doing a bit of internet trawling of my own on the issue and it seems Building Societies may provide more 'flexibility'.
http://uk.finance.yahoo.com/news/building-societie...
http://www.confused.com/mortgages/articles/should-...
There seems to be regular mention on various websites that Building Societies are owned by 'members' and not shareholders, and that this may have an effect on flexibility on a mortgage.
AJI said:
'tis the whole point of the thread no?
Is there anything to care about.....is a bank going to be 'better' or 'worse' than a Building Society as a mortgage provider?
If its common opinion that there are no differences, ie. you get the same deal from both, then I'll pass this on.
Just doing a bit of internet trawling of my own on the issue and it seems Building Societies may provide more 'flexibility'.
http://uk.finance.yahoo.com/news/building-societie...
http://www.confused.com/mortgages/articles/should-...
There seems to be regular mention on various websites that Building Societies are owned by 'members' and not shareholders, and that this may have an effect on flexibility on a mortgage.
It makes no difference.Is there anything to care about.....is a bank going to be 'better' or 'worse' than a Building Society as a mortgage provider?
If its common opinion that there are no differences, ie. you get the same deal from both, then I'll pass this on.
Just doing a bit of internet trawling of my own on the issue and it seems Building Societies may provide more 'flexibility'.
http://uk.finance.yahoo.com/news/building-societie...
http://www.confused.com/mortgages/articles/should-...
There seems to be regular mention on various websites that Building Societies are owned by 'members' and not shareholders, and that this may have an effect on flexibility on a mortgage.
Lenders will set out their own product range and lending criteria based on what sections of the market they are targeting, not whether they are a Building Society or a Bank.
AJI said:
'tis the whole point of the thread no?
Is there anything to care about.....is a bank going to be 'better' or 'worse' than a Building Society as a mortgage provider?
If its common opinion that there are no differences, ie. you get the same deal from both, then I'll pass this on.
Sorry, the way you posed the question sounded like you already "knew" there was a difference and you wanted to know which to go for.Is there anything to care about.....is a bank going to be 'better' or 'worse' than a Building Society as a mortgage provider?
If its common opinion that there are no differences, ie. you get the same deal from both, then I'll pass this on.
In any case, I would trust Sarnie on this one.
MattyB_ said:
On a similar topic, would anyone have any concerns going to a smaller building societies rather than one of the national big-boys for a mortgage?
For example, "Marsden" BS are the cheapest for me, but I've never heard of them.
Check that they actually lend Nationwide, a lot of regional BS's only lend in certain post codes.For example, "Marsden" BS are the cheapest for me, but I've never heard of them.
Expect the application to take an age, especially if "Doris" the sole person that deals with the mortgage goes off on sick for three months.......
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