scare tactics?

spirit

A well known whole of mortgage advisor has just said to me that the mortgage market is changing (don't we know it) and is getting more expensive?

for this reason she is saying I need to sort my mortgage really quickly. thing is my fixed doesn't run out til 28 Feb. They wanted me to take up a NR fixed at 6.09%, but then i also noticed that it is til Dec 2010 so short of the 2 years anyway.

I'm a bit concerned about the advice. I asked them yesterday if it might be better to go for a tracker instead as rates seem to be coming down and now they say things are getting more expensive and i need to act quickly (presumably they want me to take this NR offer). I know they get their commission from the lenders as they don't charge the borrowers.

do you think they might just be wanting to sign me up to get their commission?

beecher

Without knowing anything about your LTV, salary etc it is impossible for anyone to say if a 6.09% deal is the best for you. I would be more inclined to either have a longer fix, or go for a tracker, depending on your attitude to risk. Do you know what your existing lender is offering?

minimike2

Well known? You can name names

They are voicing an opinion...they might be right, they might be wrong. I certainly wouldnt like to guess if mortgage rates are goign to go up or down....the fact is no one really knows. A fixed might be better for your circumstances, we dont know them so cant really say if a fixed or a tracker is best for you.

The whole thing at the end about "thier commission"....to be honest, im fed up of seeing that line batted about (not meaning to be rude to you, sorry) but that line has been done to death on this forum "they want thier slice of the pie" "they are in it for thier commission" etc etc......well of course....thats our salary! Thats how we are paid! We dont all work for nothing! lol.

That said, you get different types of brokers. I have clients who I saw six months ago who I have adivsed to hold off and not do anything - likelyhood is I will be doign something before the end of the year......am I in it for the commission.....well yes of course its how I get paid.....am I so desperate for it that I tried to push them into it six months ago when it wasnt right for them.....well no....I have a reputation for good advice that i dont want to lose...I know they will deal with me when the time and product is right for them, so I know I will get it at some point. Hope you see where I am coming from on that.



If you are not comfortable with thier recommendations, maybe you should see another broker and get a second opinion, but dont tell them what this other lot have already recommended....then see if they come out with the same / different?

sarkin

A female mortgage advisor you say, curiousrer and curiousrer Ok chaps which female mortgage advisor do we know.

Lets out them on a public forum for bad service.

Conrad

Bad advice probably. Rates are set to fall dramatically and lenders will have to pass on some of the reduction.

Furthermore, at less than 2 years, time you factor in Interim Interest (can be another months interest) and fees, I doubt you will make much if any true total saving

spirit

Hi,

My existing lender is saying it's too early to quote until 90 days before it's due to expire (Feb 28th). I would prefer to stay with Nationwide if they have a good either fixed or tracker.

Minimike2, sorry I didn't mean to offend anyone, i simply wondered whether I might be pressured into getting a product which may not be right for me on the basis that they might be targetted on selling x amount of mortages per month or that NR are offering them extra incentives to push their particular product?

Beecher, my salary is a tad under £25k, never been refused credit, House worth £235k and mortage needed of £80k

seriously am i allowed to name the brokers?

herbiesjp

Is that a fee free deal they have offered you?

If so , what they might be doing is getting you a current fixed rate which does not cost anything.

If rates do decrease, and lenders decide to decrease their fixed rates, it will have cost you nothing to set up and then walk away from the NR deal

However there may be cheaper deals, but for longer fixes - have they discussed those with you?

Jobless_Katie

6.09% fixed dosn't sound too bad giving you some stability for a while, check for any extended tie ins after the fixed rate expires, you don't want to be stuck with NR's svr in these uncertain times. 3 months prior to your existing deal expiring is about the right time to be looking for a new deal, if you find a good deal now most lenders will honour their mortgage offers for 3 months. NR does pay one of the highest proc fees to brokers but having said that I would take the advice of minimike2 and try another broker without telling them what you have already been recommended to do. good luck

dunstonh

Well known suggests salesforce. Small independent firms dont get well known. If you see a salesforce adviser then you get sold to.

That said, the commission potential on mortgages is tiny and they are still going to get it paid in March whether you do it now or in January. The only possible gain to an adviser is if they are a salesforce adviser and report sales made to a sales manager. Hence, my opinion that its probably a salesperson rather than an adviser.

That said, trackers have been going up in price so there is some truth in the comments. Problem is that February is still too far away for some lenders to offer terms. Especially your existing lender. C&G for example will only offer terms if you are within 10 weeks of the expiry of your existing deal. Nationwide are a good lender and have good deals. I would be inclined to wait to see what they offer first.

spirit

The advisor is a person at London & Country. the man who sorted the current deal for me has since left them and I had a call from a female who has taken his caseload. I was really happy with his advice 2 years ago by the way.

Jobless_Katie

Just a quick one, and I'm not looking for a fight, but the commission on a mortgage placed by a broker can be in excess of £700 depending on the lender. Place a couple of mortgages a week and not a bad income!!!