How do i trust the Finance Advisor-mortgage deal to good!

Sandie11

Hi
I was given a contact from moneysupermarket.com for a financial advisor to contact me about buy to let mortgages.

He is really helpful however now wants me to commit to the product by paying him £550 which apparantly covers the booking fee, solicitors, free valuation, surveyor fees etc, there is nothing else to add for other charges, this seems really cheap.

This seems so cheap therefore do I trust him, I want to but something is holding me back.

Any advice appreciated

kingstreet

Sandie11 wrote: »

Hi
I was given a contact from moneysupermarket.com for a financial advisor to contact me about buy to let mortgages.

He is really helpful however now wants me to commit to the product by paying him £550 which apparantly covers the booking fee, solicitors, free valuation, surveyor fees etc, there is nothing else to add for other charges, this seems really cheap.

This seems so cheap therefore do I trust him, I want to but something is holding me back.

Any advice appreciated

I would expect most of those fees to be paid to a lender, not an adviser. Are you being asked to pay everything to him, to his firm or to a few different organisations?

Tell us about the lender and the offer and we'll tell you if it is available.

dunstonh

What is the status of the adviser - tied agent or independent? How is the adviser being paid (commission or fee)?

Have you seen the research and has the adviser explained the process?

My guess is you havent which is why you are uncomfortable (the first bits are on the initial docs supplied - have you read them). However, if you ask him and understand the research then you should be able to tell if its right or not.

Sandie11

Hi

I am being asked to pay this to the

The lender is Godiva and I know the mortgage is available as another FA gave me the same deal, it is:
BTL 3.75% Tracker for 2 years with £250 booking fee & free valuation another FA has quoted £757 incl these fees but I dont think incl solictiors which is why I think the £550 for all seems to good to be true.

The FA is independant and paid a commission, although he has not broken down the £550, he has asked for £300 now to secure the deal and apparantly there is then 3 months if I need it to sort.

When you say have I seen the research, what do you mean?

All correspondance has been by email from him, and no official paperwork, just explained on a simple email.

kingstreet

Sandie11 wrote: »

Hi

I am being asked to pay this to the

The lender is Godiva and I know the mortgage is available as another FA gave me the same deal, it is:
BTL 3.75% Tracker for 2 years with £250 booking fee & free valuation another FA has quoted £757 incl these fees but I dont think incl solictiors which is why I think the £550 for all seems to good to be true.

The FA is independant and paid a commission, although he has not broken down the £550, he has asked for £300 now to secure the deal and apparantly there is then 3 months if I need it to sort.

When you say have I seen the research, what do you mean?

All correspondance has been by email from him, and no official paperwork, just explained on a simple email.

There are two options for this product. The first is a remortgage upto 60% LTV. This has an upfront £250 booking fee which you would pay to Godiva. There's no valuation fee to pay and the legal costs are covered for you.

The purchase option works in a similar fashion, with the same £250 fee and free valuation. No free legals this time, so you should be able to choose a solicitor of your choice, fees around £400 - £600. You should expect the usual disbursements, such as land registry, local search etc on top. Get quotes from a few solicitors to fully compare charges.

As the lender fee is £250 and the solicitor's costs will come later and be paid directly to them, any additional costs quoted by the broker would appear to be their fees, which will also be supplemented by the commission the lender pays to them.

Although BTLs aren't currently regulated, you should be given full Terms of Business and a key facts illustration before you proceed to an application.

dunstonh

When you say have I seen the research, what do you mean?

The adviser has to justify their recommendation. That means explaining it to you. Often the best way to do this is to go through the research with you. i.e. you can see where that lender came out on the list the adviser has compared to others. That will also show the fees for the various deals.

The adviser wont mind you asking questions. No genuine adviser does. Indeed, they prefer it as its more important that you understand now then find out something you dont like later. Advisers will frequently show bits of their research to back up what has been said.