Yeah, I'd never take their advice but I'd take their grunt work and slightly better deals.
Mortgage Rate Rises
- Thread starter glenimp617
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Soldato
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Financial advisors are just salespeople. They provide a service to people who aren't prepared to spend time doing the research themselves. They are not able to know more about what is the right thing to do and when, because this involves predicting the future, which nobody can predict. In particular, mortgages are dependent on interest rates, which nobody can predict, as the central bankers who set them are making their strategy up as they go along, and very much flying by the seat of their pants.
What you can do when deciding on a mortgage/remortgage is reduce the amount of uncertainty you have in future.
Soldato
could've gone both ways to be fair. The whole market mess was very unexpected and caused by a bit of cabbage in charge.
fair play to him for agreeing with your choice. Doesn't sound like a bad guy all in.
And it was a very difficult decision. Took me weeks to commit. I didn't expect rates to go this high. I thought I'd be marginally better off. Not to this degree
Soldato
That's an insult to cabbages.
Soldato
is there a working and trusted online calculator to work out if it's worth switching deals with the early exit fees included? or it's it a case that I need to do the maths myself?
Soldato
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Mortgage Calculator UK: Repayment & interest only mortgages - MSE
Comprehensive mortgage calculator, as well as the basic mortgage calc you can check the impact of savings vs mortgages, offset mortgages, overpayments and more
www.moneysavingexpert.com
Use the dropdown menu to choose compare. I've no idea about your early exit/ pay fee, and how that's charged, but shouldn't be difficult to adjust the calculators results to suit.
E: use the ditch your fix option also
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Soldato
Excel. There may be a spreadsheet someone else has prepared but it is fairly simple to make one.
I've got 6 months left on my fixed term.
My current deal is a 12 month one as 6 months ago I was pretty sure the rate was going to drop.
I use an advisor as they take care of most of the paper work and it's less for me to think about, but I always do my own research when it comes to deciding on a rate.
My current deal is a 12 month one as 6 months ago I was pretty sure the rate was going to drop.
I use an advisor as they take care of most of the paper work and it's less for me to think about, but I always do my own research when it comes to deciding on a rate.
Had the revaluation back, they agreed with 850k... saved about a tenner but over 60 months that's £600...
Soldato
That’s what any sane person should do! We’ve used a local trusted advisor several times and he has always found us a decent deal. I’m happy to listen to his suggestions and review his options and then sit back while he does all the leg work on the product we choose. He’s often got us better rates than we could get going direct to institutions and has never charged us anything just picked up the banks comissions.
Soldato
Whilst I would never suggest leaving it all to a broker and not doing any research yourself, I have found my current broker can find new deals quicker than I can, but more importantly has access to individual lender's lending criteria. This saves me from applying for specific mortgage products only to find obstacles further down the line.
For example: some lenders do not take bonuses into account or they do, but only the average over x amount of years.
Another example: some lenders (like HSBC) will take into account a % of your cc debit, even after you have paid it off and have proof. There are lots of little things like this which can affect your affordability. It's been almost 10 years since I last took out a mortgage and I'm seeing lenders have moved the game on somewhat.
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Soldato
Another vote here for using brokers - just don't do it blindly. I spent ages looking for the right deal and he still beat it within a couple of days when I showed it to him.
His day starts way earlier than mine so when a new product comes up from a lender (but they might only have a few hundred deals at that rate) he was able to secure it before it was pulled/disappeared.
They are also handy when you have some niche (ish) requirements - E.g we had an annex with it's own utilities and address (which a lot of lenders won't touch) and we wanted to able to let the annex if we ever needed too. Having gone through loads of applications just to find out at the end that your property doesn't meet some criteria (that they are not always fully upfront about) is a pain in the backside.
His day starts way earlier than mine so when a new product comes up from a lender (but they might only have a few hundred deals at that rate) he was able to secure it before it was pulled/disappeared.
They are also handy when you have some niche (ish) requirements - E.g we had an annex with it's own utilities and address (which a lot of lenders won't touch) and we wanted to able to let the annex if we ever needed too. Having gone through loads of applications just to find out at the end that your property doesn't meet some criteria (that they are not always fully upfront about) is a pain in the backside.
Soldato
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Any net gain is a good result in my book. I know too many people who will scoff at a tenner, and are too lazy to learn, even when you explain the maths to them.
I've had several mortgage products over the last 12 years and I've always seem to have found the best deal from the moneysavingexpert mortgage finder.
Again, I always refer it to an advisor, but they can never do anything substantially better than what I can find online.
Again, I always refer it to an advisor, but they can never do anything substantially better than what I can find online.
But it is better?