• This topic has 20 replies, 12 voices, and was last updated 2 days ago by P-Jay.
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  • Mortgages – Broker or IFA
  • Premier Icon DrP
    Full Member

    The saga of “DrP’s never ending divorce” seems to possibly maybe be coming to an end….

    ALMOST clear of the family home mortgage, so time to start lookng for a home for me and the kiddies..

    I’ve an IFA I used for my previous mortgage..
    But…
    Should I use him again (with his fees etc)
    Or just look on the high street
    Or get a specific mortgage broker~/

    Ta

    DrP

    Premier Icon Tallpaul
    Full Member

    Get a broker who gets paid by the lender.

    Premier Icon dannybgoode
    Full Member

    For a mortgage I would use a mortgage broker and not an IFA. They tend to have access to more of the market and are usually cheaper.

    Premier Icon matt_outandabout
    Full Member

    I have just done it all myself.

    I stuck to a bigger lender, and looked at rates vs tie-in. Some simple online tools to look at them all and compare.

    Rates are daft low – we knocked 3 years off the mortgage and have a rate of 1.17%(!) for 5 years, taking us to nearly the end of the mortgage.

    Premier Icon rockandrollmark
    Full Member

    These mortgage brokers and IFAs aren’t magicians and they don’t have access to any secret rates that aren’t available to the public.

    I recently remortgaged. The broker I spoke to said they could get me 1.39% on a three year with a £500 booking fee plus his arrangement fee (something like £200). When I told them I could get 1.14% on a 5y with no fee (30s of Googling to get that) he miraculously told me he could do that too.

    Just sort it out yourself and use the “arrangement fee” saved to buy coke / hookers / bike parts.

    Premier Icon juanking
    Full Member

    Personally a fan of London&Country used them for my last 3 mortgages, the process is simple and the lender pays their fees.

    Premier Icon scandal42
    Full Member

    L&C were excellent when we did ours 5 years ago. Will be using them again shortly.

    Premier Icon dannybgoode
    Full Member

    These mortgage brokers and IFAs aren’t magicians and they don’t have access to any secret rates that aren’t available to the public.

    That’s not quite true. Lenders do offer bespoke products to brokers however that does not mean they are always the best ones out there.

    Heard lots of people recommend L&C though as well as on here. They seem to do something right…

    Premier Icon baser
    Free Member

    Personally wouldn’t go to an IFA for a mortgage as they can be expensive and will only have access to the same rates as a broker. Our IFA referred us to our mortgage broker.

    The broker had a better rate than we could get. When we renewed they couldn’t get a better rate than our existing lender, they were honest about it and said take the deal as it could not be beaten. The last renewal the broker had a better rate so we went with the broker.

    Look at the fee structure with the broker, we paid a one time £250 with our first mortgage which covers us for ‘life’ we can go back to the broker whenever we want/need with no charge.

    Premier Icon cat69uk
    Free Member

    Also used L&C a few times for remortage, although did my own last time. Mine due early next year, hope the current 0.84% sticks around!

    Premier Icon DrP
    Full Member

    cheers all..registered with L+C…
    Spoke to my IFA (who initially entioned percentage fees equalling… five grand!!!!) but highlighted to him i’ll keep him on teh back burner. He said, as i’m a long term client, he’ll waiver some fees. But…. WOW!

    Also applying via HSBC online as they seem a good rate too..
    But…fix at 2 years at 1.59%, or 3 at 3.09%…hmm…..

    DrP

    Premier Icon 5lab
    Free Member

    you’d be crazy to take the 3 year fix (is that number even right?) for that to pay out the remortgage rate you would have to be 6.09% after 2 years.

    assuming the 3 year rate is 2.09, you would still have to not be able to better 3.09 when the 2 year fix ends for that to pay off. I doubt rates will be that high

    (assuming that you’re not paying off vast portions of your mortgage over those 3 years)

    Premier Icon DrP
    Full Member

    sorry.. three is 2.09%!!!

    “followed by a variable rate, currently 3.54%”..

    DrP

    Premier Icon thenorthwind
    Full Member

    Also thinking about this at the moment since our current fix is coming to an end. Used an IFA for our first house purchase and mortgage but seems a bit overkill now since there are no complicating circumstances (e.g. bad credit history).

    As far as I can see, a 5 year fix @ 1.16% with our current lender seems like a no brainer. 3 year fixes (with other lenders) seem to be significantly higher. Obviously, I can’t see the future, but neither can brokers/IFAs.

    Premier Icon DrP
    Full Member

    can’t see the future eh…
    You’re useless to me.. bring me someone who can please!!

    DrP

    Premier Icon juanking
    Full Member

    Just to add I recently moved house and used L&C who were excellent. I went with HSBC and got a fix @1.09% for 5 years and the mortgage turn around was approximately 2 weeks. We bought and completed within 5.5 weeks which apparently is a bit of a record here in north wales!

    Premier Icon DrP
    Full Member

    nice rate… unfortunately my LTV ratio is gonna be 80-85%..

    DrP

    Premier Icon franksinatra
    Full Member

    I am renewing renewing my mortgage just now. My broker is going away to look at deals but in the meantime I’ve been using a couple of the comparison sites. Santander are offering me 5 years fixed at 0.99% with no set up fees. I’ll be amazed if broker can better that.

    For use, such low fees rates mean we can carry on paying the same but reduce our term by 5 years, not too shabby.

    Premier Icon DrP
    Full Member

    i’ve had a brief ‘basic’ email back from my IFA this morning.

    I’d echo what’s been said above really RE “they can’t offer me much more than a bit of googling can”..
    I mean, HSBC (and will look at santander, thanks @franksinatra) seem the best of the bunch TBH…

    It’s akin to the fact that for years i had niche funky bikes, and now am super happy on an off the shelf, easy to buy specialized!!!

    DrP

    Premier Icon P-Jay
    Free Member

    These mortgage brokers and IFAs aren’t magicians and they don’t have access to any secret rates that aren’t available to the public.

    I wouldn’t put it as bluntly as that, but it’s not far wrong IME.

    They’re useful if you’re a bit clueless and need advice, but if you know what you want then their value is supposedly in knowing which lender ‘likes’ and ‘dislikes’ what, but again IME when I tried to use a broker before, he simply started from a long list of lenders and tried them all, frankly he was terrible, he came back hat in hand saying the best he could do was high-rate, over a very long term, never gave a reason. I walked into our bank and found a far better deal immediately and it was agreed in less than 10 minutes.

    I’m going through the process of re-mortgaging now, I’ve used Habito, mostly because, they say, they can match us to lenders who ‘like’ our profile. Which is useful to us, we had a stupid miscommunication with the Water Board a few months ago, and despite actually paying them, they’ve hit us with two missed payments on our CRA (Grrrr) it’ll be sorted out, but not in time for the re-mortgage. They’re offered us 1.45% with a £1k fee over 2 years, I could get the same from Go Compare, they’re not actually the cheapest on Go Compare I could, in theory, get 1.43% but if Habito are right, and they’d not look too kindly at the 2 ‘missing’ payments, then they’ve earned their £900 commission (paid by the lender).

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