Mortgage Advice Please...

kaalirajan

Hi, My offer for a property has been accepted. I am a FTB. Now I have to get a mortgage.

Before I started the property search, I have obtained mortgage in principle from HSBC. This is to give myself more confidence, than that I can purchase a property. Also I was dealing with an IFA.

Currently I find the deals from HSBC / Postoffice is more attractive to the ones suggested by advisor. When I posted this question to him, the reply was that HSBC service could be slow.

I need some expert advice from this forum as which route should I take. Shall I politely refuse the advisor and go direct to bank? Any pointers would definitely help.

Thanks in Advance

originalmiscellany

I think most people here will have their opinions, and for what it's worth, I've been really impressed with HSBC with my dealings with them -really efficient and have guided my hand through all steps. I've only ever used a broker before this so it was my first time dealing direct with them, but I really thought they were excellent. Is your adviser a "whole of market" broker, or does he only sell a small range of them? That could be a key thing to ask him to ensure his comments are based on a level playing field.

SilverSix

Have you done any of your own research in to mortgages? Or just gone straight to the broker?

I used a comparison site initially and then went direct to the best/lowest rates ones websites.

If you haven't already I'd have a look at what Nationwide are offering. As a FTB myself they had quite a decent range to offer and were actually the best rates I found.

kingstreet

If you are confident in your ability to analyse the terms of the deals on offer and make proper informed judgments, you should have no problem working directly with a lender.

You must bear in mind bank employees are there to sell bank products. They will not advise you on the best deal, they will simply put a few quotes in front of you and it's up to you to decide. If that proves incorrect, you have no comeback as no advice was given.

You might save a couple of hundred quid over two or three years, but lose out in other ways.

In addition, you are likely to walk out of a bank with a set of over-priced, poor quality insurance products which could offset any savings you achieved on your mortgage.

If you are not the confident type at this time, an independent or whole of market broker will analyse your circumstances and the available deals to match your needs with what's available. He'll also find you the most competitive insurance and protection products and because you've been given advice, you'll have the right to have things put right later if the advice is wrong.

I've done three or four mortgages for some of my clients because we have an ongoing relationship and I keep in regular contact with them, looking after all their financial needs, not just putting the mortgage in isolation.

Good luck with what you decide.

kaalirajan

Hi Everybody, Thanks for you kind feedback. It is giving me more clear picture now as what to do and expect in each of the options.