Mortgage Broker or not

NathanE said:
The fixed term (or the introductory rate of a tracker) lasts for a set number of years. Then you fall back onto the standard variable rate of the lender. It is important but generally most people will remortgage once their introductory rate has lapsed. The key is in making sure there are no or very little redemption charges (often called ERC or early repayment charge). This way you can either stick with the SVR or remortgage, it depends upon what the markets are doing at the time.
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Im looking to fix for 5 years. So it will just be a case of getting a new deal as the product expires
 
colthillary said:
Im looking to fix for 5 years. So it will just be a case of getting a new deal as the product expires
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Yes.

The SVR rate can be different for different products when your fixed rate ends though, just check the small print.

As per my example earlier, the SVR i'm dropping to now is base + 1.99%, if I took a fixed rate now for 2 or 5 yrs the SVR it drops to is base + 3.39%, so I'm just going to stick on the SVR now for a while and re-assess when the rates start to rise.

You can usually still overpay on a fixed rate mortgage, but just by a limited amount per year (eg. 10% of the capital). On a SVR its usually unlimited overpayments.
 
Yeah just as i thought. Best deal i can find fixed for 5 with 80% ltv is 4.12%, free val and 500 fees. prob is the forcast is 6.1 at the end of the 5. Broker informs that its irrelevant as 3 month prior you set up a new product to jump to as it expires.
 
As long as you are perfectly happy with the amount of the repayment on that fixed rate and it isn't stretching you financially, then that's fine - you have the security and knowledge of exactly what you need to pay for 5 years :)

*if* you can find some spare money over that time, then pay some extra off (**** Make sure to check the T&C's and don't over pay too much!****) this will help when you come to get a new deal, as who knows what the interest rate will be then....it can hardly be any lower than now! ;)

8, 10, 12% mortgages were common place in the 80's..90's etc, imagine what your repayments would be like if that was the case now...^^
 
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Consider the broker that the agent has no doubt offered you. You probably have no appreciation at all for the amount of leg work the agent themselves will likely have to put in to get you out and into your new place. Conveyancing is NOT easy.

Also, if you use the broker in the office with the agent, the degree of control that they have when things inevitably get a bit wobbly at times is neigh on invaluable. Remember, its in both the broker and the agents interests to make the sale happen. I personally would like their desire to make their money as a back up in this instance.

So many people bitch about brokers and agents but frankly, do you really expect them to do you a favour and do it for free?

The banks rate will NOT be the best out there. Shop around and take the advice.

Ask Phil and Kirsty.
 
I chose not to use a broker, wish I had now.

I went with HSBC - they've just changed the way they do mortgages as of 1st Jan so that you have to use one of their selected conveyancers and let me tell you, they are rubbish! I applied for my mortgage in January and am only just exchanging contract now - in April!

Brokers take the stress away and can advise you on things you wouldn't normally expect. They generally don't show you the HSBC's / First Direct etc. as they don't pay them commission, but in hindsight I would have happily paid a slightly higher rate than go through the pains of an HSBC mortgage.
 
Simon said:
I used a broker who charged no fee, got a lower fee mortgage then I could directly. A lot of the mortgages were under £1000 fee too, some were even no fee so I can't understand the assumptions above.

His only payment was commision from the lender, which was clear in the contract and was £600.
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This is exactly my experience too with our initial mortgage on this place and a subsequent remortgage. And I don't (as NathanE put) have 'lower equity or a weak credit score'. I did a lot of research both online and direct to the eventual banks with whom the brokers got the best deal and I couldn't beat them.
 
Same here really, I found a like for like myself fees against rate. Broker is local, fee free and whole of market. Why not let them do the leg work and jump the hoops lol.
 
NathanE said:
Conveyancing is what your solicitor does. The estate agent and/or broker don't do this.
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HA! I see your point if a little pedantic. My point was that conveyancing is NOT easy and the estate agent can and more often than not does play a crucial role in getting solicitors to pull their fingers out.
 
jonas123 said:
I chose not to use a broker, wish I had now.

I went with HSBC - they've just changed the way they do mortgages as of 1st Jan so that you have to use one of their selected conveyancers and let me tell you, they are rubbish! I applied for my mortgage in January and am only just exchanging contract now - in April!

Brokers take the stress away and can advise you on things you wouldn't normally expect. They generally don't show you the HSBC's / First Direct etc. as they don't pay them commission, but in hindsight I would have happily paid a slightly higher rate than go through the pains of an HSBC mortgage.
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Listen to this. In the industry we have known this for a while. Its hillarious. HSBC draw in all the poor unsuspecting punters with good rates that they can almost never actually qualify for, take £1500 from them at the start and then force them to use awful solicitors and dreadful surevyors. Use a broker damn it!
 
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