London & Country – A word of warning

MortgageMamma

Hi QuidProquo

I think what you have posted is very interesting, but I am not at all suprised by it. This is why I charge an advice fee, so that if I want to recommend a lender who does not pay brokers for their services, I can do. In fairness I have only done this a couple of times and this was with existing clients, it was earlier this year when Britannia has the 4.39% fixed.

It is sadly an FSA glitch and whole of market is misunderstood by most. Some estate agents advisors and other tied advisors can claim to be whole of market if they can cover all mortgage requirements, fixed, discount, tracker, adverse, buy to let, self cert, etc etc. I did a post about this some time ago as I was getting frustrated trying to explain it to clients. As I felt it was really unfair on the TRULY whole of market advisors who have to work so hard to keep that status!

As for the insurances, if you knew the technical difference between different types of cover and insurer's definitions and exclusions, you would see it really is well worth taking advice on this. None of us ever know what life has in store for us, my ex father in law aged 59 was diagnosed with throat cancer on wednesday 17th may, and he was dead on the saturday 20th. His family are still reeling and my ex mum in law now has to sell her treasured home and downsize down to a lack of life assurance.

dfarry

Hi all, I haven't had chance to read all this thread yet, but L&C are recommending a First Direct Offset mortgage to me... isn't FD a HSBC company?

dfarry

I've been searching high and low too... but I can't beat it.

homer_j_3

dfarry wrote:

Hi all, I haven't had chance to read all this thread yet, but L&C are recommending a First Direct Offset mortgage to me... isn't FD a HSBC company?

FD are part of HSBC.

dfarry

homer_j wrote:

FD are part of HSBC.

Yup indeed and thats why I don't understand why L&C would not consider HSBC mortgages.

The deal I have been offered with FD is:

Fully Flexible Offset tracker
18mths 4.69%
then
18mths 5.25%
thereafter 5.50%

No early redemption
deeds/admin fee - £150
arrangement fee - £299
valuation - £270

Abbey National came close but still couldn't beat this... most other offset lenders don't come close. For example my current offset rate is 5.25% with the Woolwich - but if I start a new mortgage with them it will be 5.35%

homer_j_3

some lenders will not accept business from introducers/brokers. HSBC are one of those I think. Whilst they are part of the same company - they will have different business models and approaches..

payless

Certain "non broker" lenders ae looking at getting into broker market, and might try and dip toe in water and although access via a select number of brokers. So long as the deals best for you and not being sold as "favour of month" ( volume promised to the broker) then thats great

dfarry

Thanks Homer... so it knuckles down to the lender and not L&C... that's a relief because I would not like to feel misled...

I have gone with L&C because I have dealt with one particular broker there a few times over the past few years.... I have not always taken her advice on their best product but she has always been helpful and totally professional.

They will be getting about £700 if I go through them for the FD mortgage, not a bad days work by all accounts, but this particular rate doesn't seem to be on the FD website so I think it may be a special broker only deal (perhaps they are incentivised to sell these more than others or it is flavour of the month?) Either way FD was just one of about 5 other recommendations that I myself excluded for one reason or another.

aloiseb

Well we've just organised our new mortgage through L&C so I hope it comes out alright.
Maybe this is bad Moneysaving, but i do feel that we have got a good deal - maybe not the only good deal, or even the best that coudl have been got, but as somebody points out above there are 8500 products availble on the market. idon't think it woudl be reasonable to expect them to get the top pick every time. It would be like looking for a secondary school for your kids which had 100% A*s in the league tables: not going to happen! It's still got to be better than going to your friendly local bank and taking whatever they offer, adn we haven't got time to do the extensive internet trawling and calculations ourselves.

Re the hard sell of related products:I was comforted when our adviser tried it, as up till then I had been wondering what the catch was! I plan to read some more of Martin and get it elsewhere.

dfarry

Whilst other products such as Income protection, Critical illness and life cover have been mentioned I have certainly not had any hard sell treatment from my broker at L&C.The only other product I will go for is joint life cover (without critical illness) and this may not be with L&C anyway.