We decided to build a new house and the builder recommended Newbuild for finance. We didn't look at any other options as we needed to get finance asap, so we spoke with one of the representatives.
Very good sales pitch and when I asked about how much it would cost us this subject was skimmed over and I was under the assumption it would cost us $500.
We agreed to sign up and then the next meeting we were told we had to sign up for life insurance with Sovereign for two years or else we wouldn't get the mortgage. Not happy but went for the cheapest option, also had to pay insurance indemity of $3500 to cover Sovereign in case we went bust.
The payments to the builder were managed without hassle but over the 6 months we added an extra $27,000 on top of or budget with interest payments and extra's.
To top it off my first mortgage payment with Sovereign was $600 extra than I was expecting, when I contacted them they put it down to interest during the set-up over a 10 minute phone call.
Just finished my two years, life insurance now cancelled and change mortgage provider. BEWARE.
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