Do I need a 'financial advisor' when first time buying?

OpenToSuggestions · 9 Apr 2013 at 18:55

Hey all.
I am in search of my first home.

I have visited a financial advisor, who has a £300 fee for managing the whole process. They mortgage hunt on my behalf, go through credit checks, deal with solicitors, deal with legal etc.

What is the general view on these?
Do I really need one?
Can't I just go straight to a bank?

Dunks · 9 Apr 2013 at 18:58

Of course you can go straight to that bank.

cm1179 · 9 Apr 2013 at 19:09

£300 doesn't sound like a lot but you can do it all yourself, depends if you have time to scout around for the best deals.

you'll still have solicitors fees to pay if you do have an offer accepted.

deusexlumina · 9 Apr 2013 at 19:13

i'd do it myself, and then buy something with the £300. Win win,

ci_newman · 9 Apr 2013 at 19:22

I tell you what, I'll do it all for you:

Mortgage - http://www.ybs.co.uk/
Solicitor - http://www.iconvey.co.uk/

Both can be done online, both are giving excellent rates at the moment.

Done

BurningHorizons · 9 Apr 2013 at 19:22

As a FTB going through the same process and just about to complete... No need in my opinion. Just search the price comparison sites and go to the banks who are not generally on the sites. HSBC, NatWest, First Direct etc. Have a good relationship with your solicitor/conveyance and you should be laughing to the tune of £300 to buy some curtains!

OpenToSuggestions · 9 Apr 2013 at 19:36

What exactly does a financial advisor do then?
It sounds like I can do it all myself!

knip · 9 Apr 2013 at 19:39

Bought my first home last year.

Didn't need any financial advice, I did my own research on the best deals. You'll need the £300 when it comes to conveyencing fees or mortgage arrangements fees. Keep the money in your pocket and do your own homework

BurningHorizons · 9 Apr 2013 at 19:52

OpenToSuggestions said:
What exactly does a financial advisor do then?
It sounds like I can do it all myself!

Not a great need for them as far as mortgages are concerned these days. The internet has largely negated their requirement.

Wink · 9 Apr 2013 at 19:58

No need at all. Don't waste your money

peige · 9 Apr 2013 at 20:24

No need unless your personal finances are complex or not straight forward.

If your situation is complex as mine was/is then you need one to make sure you apply for the right mortgage, being refused is not at all good.

BennyC · 9 Apr 2013 at 20:57

Wink said:
No need at all. Don't waste your money

ince · 9 Apr 2013 at 21:21

Yes if you have bad credit no if not.

Choose a local recommended solicitor not an online one

OpenToSuggestions · 9 Apr 2013 at 21:24

Many thanks for the help all!

I rang HSBC who have a good deal on at the moment for first time buyers.

Question is:
2 year fixed 4.15% no fee - The extra £40 cheaper per month over the 5 year fixed deal would make life more comfortable.
5 year fixed 4.65% no fee - Gives me piece of mind for 5 years, which in the meantime I expect to move up the salary ladder.

Hard to chose which!

.

Destination · 9 Apr 2013 at 21:27

What is their standard variable rate currently? The rate at which it will return to after the fixed period?

OpenToSuggestions · 9 Apr 2013 at 21:36

Hikari Kisugi said:
What is their standard variable rate currently? The rate at which it will return to after the fixed period?

Their best one is 2 years at 3.99+ base (so 4.44%). Not that this matters as they only start at 15% deposit. I only have 10%.

Destination · 9 Apr 2013 at 21:39

Have you been on moneysavingexpert and put in your details for te mortgage comparison thingy?
Should let you know what is available around 90%ltv.

feedtheram · 9 Apr 2013 at 21:43

No. You shouldn't be paying for this. Find a mortgage broker who doesn't charge. They get paid by the bank for setting up the deal not by you. They have a wide range of deals available from loads of lenders although there may be some they don't have access to. Finding a good mortgage broker was one of the best things we did when buying our first place.

OpenToSuggestions · 9 Apr 2013 at 21:44

Hikari Kisugi said:
Have you been on moneysavingexpert and put in your details for te mortgage comparison thingy?
Should let you know what is available around 90%ltv.

I have had a general search over many weeks, but think the current HSBC offer is the best by a good amount.

physichull · 9 Apr 2013 at 21:47

OpenToSuggestions said:
What exactly does a financial advisor do then?
It sounds like I can do it all myself!

Exactly, its just a money spinner that some affiliated estate agents try to spin at you. Totally and utterly pointless. Some offer services which compare different lenders and get you the best deal, but what you save there is taken away by them for their fee! Waste of space. Do it yourself, easy enough with a good solicitor.

I found that Bridgfords Estate Agents wouldn't let me view any of their properties without seeing their independant advisor, so I sat through it for a pointless half an hour then viewed the houses.