Remortgage question

infobank

The FSA demand that any mortgage broker take in to account what the existing lender will offer the clent when recommending any alternative product on a remortgage case.
Not to do so, is a clear breach of their rules.
However, in quite a lot of cases the existing lender will not tell the broker what they will offer the client, and use the data protection act as their excuse.
The only way for the broker to deal with this is to get the clients consent in writing to give authorisation to the lender to allow it.
So ....... if as a borrower you can not recall being asked for this, then it is very likely that it has not occurred ?
That begs the question "has the broker taken in to account the "retention deals" being offered by the existing lender ?

MarkyMarkD

4.79% for how long, fixed or variable, and with what fees to change product?

regularsaver1

£299 fee for mortgages over £75k - is a tracker, currently 4.79% until July 2009

when you think that to leave Halifax it will be £175 early discharge fee plus £50 deeds dispatch and then the fees with new lender, its not that bad really

stanmoresaver

stanmoresaver wrote:

A decent broker should be aware of the Halifax's retention products and have taken them into considaration- Ask him if he has- if not- maybe another broker might be in order?

infobank wrote:

The FSA demand that any mortgage broker take in to account what the existing lender will offer the clent when recommending any alternative product on a remortgage case.
Not to do so, is a clear breach of their rules.
However, in quite a lot of cases the existing lender will not tell the broker what they will offer the client, and use the data protection act as their excuse.
The only way for the broker to deal with this is to get the clients consent in writing to give authorisation to the lender to allow it.
So ....... if as a borrower you can not recall being asked for this, then it is very likely that it has not occurred ?
That begs the question "has the broker taken in to account the "retention deals" being offered by the existing lender ?

This,again, is another inaccurate assumption of the role of a broker and the regulations we work within- I am sent monthly and therefore are freely available , a list of the Halifax retention products for the current period. They are not individually tailored to specific clients (and therefore the DPA doesn't apply) but, as the same as new business deals, apply to a set of certain perameters such as loan size LTV etc. It may be fair to suggest that some brokers may not pay enough attention to retention products, but, again, don't try to tar all brokers with the same brush

It's a good idea to know your facts when posting.

AndrewSmith

To the OP:

You need to arm yourself with as much information as possible. Get your broker to carry out research for you including any retention deals offered by the Halifax (which the majority of us experienced brokers do anyway as SS says).

Also it never hurts to call your existing lender yourself to see what they are offering just to ensure that they have supplied the broker with the most up to date info.

If going for a product with an arrangement or booking fee, ask initially for this to be added to the loan. This will mean that the lender will reserve the required funds for you without you having to pay an arrangement fee for them, allowing you to change your mind should a better rate with that lender come along in the meantime. You can always opt to pay the arrangement fee at completion later on. As long as it is with the same lender, any valuation you have had carried out on the original product submission should be transferrable to another product. Worth getting the broker to check this out first though.

Hope this helps

Andy