Is my IFA showing me the best deals?

coz_1967

First off thanks for all the help in this forum, it makes life so much easier for FTBs.

My partner and I have been to see an IFA who was recommended to us. They say they are whole market.

We are looking to set up a mortgage in principal so we can start making offers.

We will have a 25% deposit with some family assistance, and are looking to fix for 5 years. The properties we are looking at are around £170k.

We both have excellent credit ratings, secure jobs, good prospects etc.

The mortgages that were recommended to us were:

Leeds BS 4.99% fix for 5 years (5.69% var after) 75% LTV
Nationwide BS 5.09% fix for 5 years (3.99% var after) 75% LTV

Now moneysupermarkets Best Buys I see:

Yorkshire BS 3.99% fix for 5 years (4.99% var after) 75% LTV

Is there any reason why this one hasn't been recommended? The rates are a little higher than I was expecting. Can't help but be sceptical. Thought it might be a little cheeky going back to them and asking.

Same with the 3 year fixed deals they recommend, Abbeys 4.35% and Leeds 4.14%. Moneysupermarket has them all at around 3.5%. Any ideas?

Thrugelmir

No one can cover every lender in the market. Rates and deals are constantly changing.

coz_1967

Thrugelmir wrote: »

No one can cover every lender in the market. Rates and deals are constantly changing.

So why does Martin recommend using an IFA for mortgages when price comparison websites seem to do a better job?

Thrugelmir

coz_1967 wrote: »

So why does Martin recommend using an IFA for mortgages when price comparison websites seem to do a better job?

Depends if you confident in your own understanding of finance. I've always found my own mortgages after research.

There's only one totally unbiased site, and thats the FSA's.

http://www.moneymadeclear.org.uk/tables/

Cannon_Fodder

Check the fees associated with each product.

The more expensive rate might be a low (say £99) fee, while the cheaper is a higher (perhaps £999) fee, influencing which is the "best" deal.

coz_1967

Cannon_Fodder wrote: »

Check the fees associated with each product.

The more expensive rate might be a low (say £99) fee, while the cheaper is a higher (perhaps £999) fee, influencing which is the "best" deal.

The ones they recommended were all around £800-£1000.

Looks like over the 5 years I could save around £6000 by going with Yorkshire.

dunstonh

So why does Martin recommend using an IFA for mortgages when price comparison websites seem to do a better job?

Price comparison sites show the commission only paying deals. The price comparison sites get that commission if you use them.

If you use a mortgage adviser and they are working on whole of market basis you will get the same range but maybe a few differences. If you use an independent using FULL whole of market then you will get the widest range. However, that means working on fee basis (which may be the cheapest option).

There's only one totally unbiased site, and thats the FSA's.

Although damned unreliable. Adding the caveat that its unreliable on regulated investment products. Being an IFA I dont do mortgages so dont know if its better there.

coz_1967

So if I go ahead without the IFA and go straight to the lender, is an agreement in principle easy to do on their website or am I best going in person?

Also, I have been told most agreements last 3 months, but how can I find out the exact date?

Thrugelmir

dunstonh wrote: »

Although damned unreliable. Adding the caveat that its unreliable on regulated investment products. Being an IFA I dont do mortgages so dont know if its better there.

All the major lenders deals get posted up. So its a good starting point for investigating further. If you've the inclination to read the small print and pick up the phone to ask questions.

A mortgage choice is down to the individual at the end of the day and the type of product they want. Also the degree of risk they are happy to take.

Many years back I locked into a fixed rate of 10.75% for 5 years only to see rates plummet. Ever since then always had a floating rate.

dwsjarcmcd

I suspect the reason you have not been shown the Yorkshire deal is because they don't either accept business from mortgage brokers or pay them commission.

dunstonh

All the major lenders deals get posted up. So its a good starting point for investigating further. If you've the inclination to read the small print and pick up the phone to ask questions.

Ironically, someone just posted in the pensions forum at how inaccurate the figures were for pension annuities compared to those available via IFAs. The IFA was able to get a lot better. (no surprise on that front).