Mortgage House - Anyone dealt with them?

Hi all,

I recently got an offer from Mortgage House of 2.99% for my investment properties and I can choose whether to have my loans as 2 years or 3 years fixed investment interest only or investment variable.

I have just over 5 million dollars in lending and a solid credit history hence why they have offered me this rate. They advised the lending will be with them directly (Mortgage House Capital Funding No.1 Ptd Ltd).

My question is has anyone dealt with Mortgage House before? Any issues or questions i need to ask or consider?

 

They're a mortgage manager, there's some interesting reviews on product review website.
What are the app fees?
Do you have to pay for your own valuations?
What's their internet banking like, do they have an app so you can access on mobile if that's something you need/want?

 

They do have app fees but they have provided a written confirmation including in the conditional approval that they will reimburse it post settlement or if the loan is not serviceable for any reason.

they also will only charge me one 395 annual fee across all my loans and no cross collaterisation.

only fees I will be liable for are the government charges and any valuation fees which they advise will not exceed 3-4 out of my 13 securities as they have confirmed the remaining 9 or so require no full valuation.

 

Conditional approval? So you're already applying with them? They should've checked serviceability well beforehand.
How much do they charge for the full valuations that you do need?
Recommend reading through some reviews, lots of customers saying their variable rates increased a few months after settlement out of line with the RBA and other lenders

What's their post settlement service like? What's their internet banking like? they don't appear to have an app either

 

Oh I haven’t made any payments for application fees or valuations yet. Told them I need to think about proceeding and will advise them by Monday.

not so sure now after what is being mentioned

 

Offering a far lower rate that others... why
1. Cutting somewhere, service/features
2. Will get you later.

 

is there serviceability calc much easier than others?

 

So on top of an annual fee at the top end of the market, they're also charging you an application fee and valuation fees? That's quite a bit more than the major banks and there's plenty of lenders with significantly lower fees than the majors.

The rate of 2.99% is pretty sharp, but that's owner occupier, not investment. There are more mainstream lenders with similar rates and significantly lower fees.

Additionally they're a mortgage manager, not a deposit funded bank. There's a big difference in the security of their funding models, which leads to these types of lenders aggessively increasing rates. Granted most lenders do this eventually, but Mortgage House's reviews indicate they're a lot more aggressive than other lenders and they're reluctant to review pricing later on.

Finally I think you'd be insane to put 13 properties with a single lender. Exposure risk to a single lender is very real and only increases with each property. It doesn't matter how good the rates are, risk mitigation is more important at this level.

 

I was thinking that this was sounding a bit too good to be true for IP loans!

 

No it definately is investment interest only and I can choose variable or fixed for 2 or 3 years

 

Can't find any IO Investment loan close to 2.99%? I'm on their website, am I missing something? Must be a special offer to you only?

 

Due to total loan size probably

 

Yes it’s a private client offer