Mortgage Broker Hassle

crescent179

We are waiting for our mortgage offer to come through anyday now, my broker wants to have a chat tomorrow about life cover, house insurance etc.

As a first time buyer we're a bit unsure of what we need and what we dont need, I know we need house insurance but what else is essential because I'm pretty sure she will be trying to sell me everything.

cheers.

mac24

They are the main two.Life cover is important as it will pay the mortgage should something happen to either of you.Buildings and contents insurance will cover you for all kinds of mishaps and problems.
However,i guarantee a mortgage broker won't offer you the best deals on the market.

VIGILANT22

Have you thought that she is maybe just trying to do her job. It would be a very irresponsible adviser if they didn't discuss with you how you plan to pay your mortgage in the event of redundancy/accident/sickness etc....So she doesn't discuss this with you then you're off sick and cant pay your mortgage, what will you do then raise a complaint against her 'cause she never discussed protection with you.......

The majority of repo's are people with an attitude like your's....who have ended in difficulty thru redundancy/illness etc.........

if you can't afford it, you can't afford to be without it...and you shouldn't be buying a house.....I suppose you have your mobile fone insured....rolls eyes.........

JA1000

Fact - YOU NEED HOUSE INSURANCE

If your house burns down what have you got left - nothing for £100-150 get it, if it does burn down and you don't have contents you get it rebuilt but nothing in it, nice if you want to sit and sleep on the floors.

He will be more interested in the life cover, more money in this for him than the others. It's a good idea to have it so worth getting quotes online.

If you want to get rid of him on it just say you have 4 times death in service in each job, he will not match this as it is free with some employers, this then lives you free to sort yourself out.

A house is a big purchase but make sure you get this insurance.

VIGILANT22

mac24 wrote: »

They are the main two.Life cover is important as it will pay the mortgage should something happen to either of you.Buildings and contents insurance will cover you for all kinds of mishaps and problems.
However,i guarantee a mortgage broker won't offer you the best deals on the market.

How can you guarantee this, you will get better rates from a broker than any bank....AND....you will receive advice as to the most suitable form of protection for you.....When you are young you are more likely to be ill then die, so what about protecting your income....How can you say life cover is important you don't know the OP's circumstances.....maybe he has death in service benefits which he feels is appropriate enough at this time to cover him????...who knows....

Dom3663

I have just gone through this myself...

They will try very hard to get you to take out their mortgage, I guess its where they make most of their money.

The buildings insurance is necessary to get a mortgage. Contents insurance is not. As a first time buyer, with not alot of possessions, this was not a high priority to me.
Buildings insurance, the necessary one, I was quoted a price alot higher than you can find on the net. I have some internet printouts to take to my next meeting with them to show just how much cheaper I can get it...this will put the broker in a very awkward situation. (But there may be something simple that I've missed in my online quotes)

Life cover/illness cover to me is invaluable. If something was to happen to you that required you to be off work long term, or even short term, could you afford to pay your mortgage? If not then your in big trouble...to me this was very important.

If they don't ask you to consider which insurances are important to you then you are being missold the insurance as you are not confident that you need it.

I KNOW my insurance is a bit higher than I can get it direct from a company, but being a 1st time buyer I want to make things as easy and quick as possible for myself, and if that involves paying slightly over the odds (minus the buildings insurance) then I'm happy to pay that premium. I just wish the broker would admit to this rather than claiming to be "free"...

VIGILANT22

Do you people realise an adviser has an obligation to at least offer advice as to how you should be covered, if you decline the advice fine, the adviser at that point should get you to sign a disclaimer so no come back in the future.
Many people go on the net and buy policies then in the event of a claim. they find they cant because they've not obtained the right cover..all they've done is gone on and looked for the cheapest but haven't understood the policy.

What do you want your broker to admit to??...I'm sure the commission that is being rcvd is disclosed in the quote....Do you want then to work for free!
Dom3663 As for your remark about being missold, you have a lot to learn....

Dom3663

huh? I havn't been missold in any way...what I'm saying is if the insurance is forced upon you without being given the opportunity to decline/understand/discuss/amend ... isn't that being missold?

JA1000

Do you realise that a lot of advisers leave the commission fee until the end. When really they should make it clearer.

You wouldn't expect your solicitor, accountant or estate agent to work for free so why should and IFA. They have to be paid and this I think is the better way of doing it as it is more painless.

However if you do have problems which should be rare, take the insurances take the life cover pay it a couple of months. Then cancel it in the knowledge that a the adviser will enter the wonderful world of clawback!!!

VIGILANT22

JA1000 wrote: »

Do you realise that a lot of advisers leave the commission fee until the end. When really they should make it clearer.

You wouldn't expect your solicitor, accountant or estate agent to work for free so why should and IFA. They have to be paid and this I think is the better way of doing it as it is more painless.

However if you do have problems which should be rare, take the insurances take the life cover pay it a couple of months. Then cancel it in the knowledge that a the adviser will enter the wonderful world of clawback!!!

You know what they say about what goes around comes around.......I understand now how you're being hit for 30k!..........:D

JA1000

VIGILANT22 wrote: »

You know what they say about what goes around comes around.......I understand now how you're being hit for 30k!..........:D

Ha the secret broker is revealed. Handy to know how it works and I guess this hit a nerve I wouldn't do this to a broker because you should be sure up front with them. Quite clearly this post is about someone who maybe being pushed.

Agree they should state in the reason why, but advise don't push. It's a much nicer method.

I think you also missed the point about the support for the broker.

£30k on £800k is more of an itch than a issue and it's with the FOS.