Do I have to use a mortgage advisor named by builder

Cuckie_2

I am looking at buying a brand new house from Taylor Wimpy and are looking at utilising their part exchange scheme. They have said we are to use a mortgage advisor that they have named although is an independent advisor.

Can they make us use this person or is it against financial regulations to make us use a mortgage advisor we don't want? I spent 10 minutes research and came up with at least half a dozen better deals than they offered and am pretty sure that my cuurent mortgage lender who I have a very low rate already with would provide the extra funds and would probably be better than what is currently on offer.

It would be nice to know if it was against regulations when I tell them that I will find my own mortgage! Not only was I being told to use them the advisor sent me rates higher than a 10 minute bit of research would be able to beat he would have got £700 - £1000 for each of those mortgages..........yet I would have paid £200 - £500 a month more for a mortgage!!!

dunstonh

I can't see how they can force you to use their adviser.

However, I bet you they adviser doesnt work on independent basis. (that means fee based with all commission rebated and non-commission paying mortgages included in the research).

brit1234

If you want to be safer get an independent one or simply do your own research.

There is a chance that the builders advisor will pay a kickback to the builder. Smells of corruption.

ceecee1

No you dont - I have just bought a new build from Taylor Wimpey and used a friend of mine who is an IFA.

There was quite a bit of pressure from the saleswoman who insisted on knowing why I wasn't going with there recommendation but I said that my friend had already sorted me out a mortgage ( a lie )

She wanted to know whether or not he was properly qualified, whether or not he was registered and told me that he had better get his finger out as only their mortgage advisor could arrange things quickly enough ! In the event I was sorted out weeks before they were !

She said that I wasn't entitled to the £250 allowance if I didn't use Taylor Wimpeys but I got it anyway - the excuse was that it was already written on the document. My IFA said that if they were offering this amount then they could not take it away if I went my own way...

Good luck - its a stressful time, Taylor Wimpey keep you hanging and hanging and then suddenly you have to move straight away ..

holly_hobby

I'm just repeating what has already been said - but I will add that the only benefit for using a builders MA - is if that MA has access to exclusive Taylor Wimpey mortgage deals.

Intermediary only (or mortgage club exclusive) deals will be generally available to unconnected MAs/FAs on your high st.

The lenders promoted by the Taylor Wimpey MA - (I should say may here to cover mysefl) may be those with the highest proc fee and/or those that offer advisers incentives for placing x amount of business with them over a given period.

I have posted recently on a similar situation as this regarding Est Agts and their pushing of their own adviser on the purchaser - so at the risk of repeating what I said there...

The builders MA and sales advisor probably have a duty of care under TW to qualify all offers i.e the individual has the means or mge already in place to complete the purchase and are not time wasters (for want of a better phrase !).

That is the sheer extent that they can insist upon you having a meeting with the MA - they can not insist upon you taking a mortgage through the adviser (who is probably self employed and not even employed by TW), nor can they prejudice you for NOT effecting a mge via their adviser either.

Indeed to avoid having a meeting with their MA (whilst allowing them to qualify your offer/pch), simply provide to them your brokers contact details for them to call or get your brokert to contact them directly, and/or a copy of any AIP you have (which is a tacit agreement pre survey), to confirm that you have been assessed for mge purposes, and are suitable for the mge reqd.

Hope this helps

Holly