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

gosshawk · 9 Apr 2013 at 21:47

After just buying my first house, I agree that financial advisers are a waste of time - the £300 fee they quoted is just the upfront fee, there are a lot of hidden fees - referral fees, renewal fees etc etc. And they couldn't even offer a better rate than I found myself!

I am also with HSBC, we went with a 3 year fixed term with a 90% ltv - would recommend! The "no fees" is a great help, but definately pay the extra and get a more in-depth survey through them. I done my mortgage shopping about 6 months ago, and 4.44% is slightly better than the rate I got, and that was the best at the time!

So it sounds good mate - don't use online conveyancing though - use a local firm where you can speak face-to-face with someone and just pop in to sign things.

Hope that helps and good luck with it all - lots of stress, but best thing Ive ever done!

Destination · 9 Apr 2013 at 21:50

Sorry I have misunderstood, the reason I asked what their variable rate was, was for a vomparison between the two fixed offers, if their variable is 3.99 plus base, amd thats what you revert to after the fixed period, then I'd go with the five year fixed.
In the next two years our rate of interest might not move at all, but over the course of five years it is likely it will. A single half point increase will make things more dear at that stage once th variable switch occurs.

The counterpoint is the chance that a similar five year offer will be on the tale in two years, with no fee, if you think it might be, then roll for the two year deal. It'll be cheaper for you in those two years, and as long as no fees creep into th occasion just plump for a new deal when it expires.

NotAGolf · 9 Apr 2013 at 23:10

feedtheram said:
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.

This.

A lot of people seem to be quick to write them off, but if you find one that doesn't charge (which should be most of them tbh as they get a cut from the lender, not you), why wouldn't you use them?

We went with one for peace of mind and are glad we did as Nationwide kicked up a fuss about our house being timber frame and built before 1970 so they said they would not give us a mortgage. Our broker told us this but immediately got in talks with Nationwide and got it all ironed out. It was really handy as I was out of the country at the time so it saved a big delay or the missus having to handle it all.

Haggisman · 10 Apr 2013 at 08:37

As someone who is close to completing on my first house (next Friday

) I would say don't bother - as long as you have a bit of common sense and are prepared to do a bit of research/chasing, it's not a big deal

OpenToSuggestions said:
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.

I guess it depends on how much you value the knowledge that your payments aren't going to change (how much could you afford them to go up by?) over an extra £40/month in your pocket?

We ended up going for a 5 year fixed for that peace of mind.

kinobestew123 · 10 Apr 2013 at 17:21

mpledge52 said:
This.

A lot of people seem to be quick to write them off, but if you find one that doesn't charge (which should be most of them tbh as they get a cut from the lender, not you), why wouldn't you use them?

We went with one for peace of mind and are glad we did as Nationwide kicked up a fuss about our house being timber frame and built before 1970 so they said they would not give us a mortgage. Our broker told us this but immediately got in talks with Nationwide and got it all ironed out. It was really handy as I was out of the country at the time so it saved a big delay or the missus having to handle it all.

I think i'd be a little bit skeptical about an advisor that is being paid by the people who's services that advisor is ultimately selling. The advisor going to be pretty strongly drawn to recommending the mortgage that nets them the most commission rather than acting in your best interests.

NotAGolf · 10 Apr 2013 at 18:56

kinobestew123 said:
I think i'd be a little bit skeptical about an advisor that is being paid by the people who's services that advisor is ultimately selling. The advisor going to be pretty strongly drawn to recommending the mortgage that nets them the most commission rather than acting in your best interests.

That's why you should do your own research first You be a bit of a donut just to take someone's word on something as huge as a mortgage. As it turns out the best our broker could find was exactly the same package as what we found ourselves.

Matutu · 10 Apr 2013 at 20:19

If your looking for mortgages as well have a look at Nationwide, I just purchased my first property and have a 5 year fixed for 3.39%

ci_newman · 11 Apr 2013 at 09:32

Matutu said:
If your looking for mortgages as well have a look at Nationwide, I just purchased my first property and have a 5 year fixed for 3.39%

With a 10% deposit I think he'll be lucky to get anywhere near 3.39%.

We're buying a new place at the moment, with a 25% deposit we've secured 2.29% from YBS.

Kimi · 11 Apr 2013 at 11:27

Financial advisers are a con, they give you information you can get for free

DogsBody · 12 Apr 2013 at 12:56

I talked with a mortgage advisor then went and found teh best deal possible, I showed him the deal and he said I can't beat that good luck

SO I kind of got a free mortgage advisor

NotAGolf · 12 Apr 2013 at 21:24

Kimi said:
Financial advisers are a con, they give you information you can get for free

And what if they give you the information for free :rolleyes:

HangTime · 13 Apr 2013 at 00:43

mpledge52 said:
A lot of people seem to be quick to write them off, but if you find one that doesn't charge (which should be most of them tbh as they get a cut from the lender, not you), why wouldn't you use them?

Because some of them may not be any good. We used an IFA for our first mortgage and he didn't fill out all the forms properly, we had to get a couple of amendments made. I could have done a better job myself, the only reason we used one was due to lack of experience and knowledge of how things worked the first time out.

When we remortgaged I just did it all myself, a lot easier, less reliance on other people, less chance of mistakes, if you do it yourself you know it is being done with care and attention not rushed through for the minimum effort possible. I'm sure there are some that are very good but personally I wouldn't use one just for the sake of it.