Need urgent advice on broker fee

kingstreet

Damn! 'munchy beat me to it.

Your current deal may revert to (SVR) standard variable rate, currently 2.5%, or (BMR) base mortgage rate, currently 3.99%? depending on when it was taken out. Check your key facts illustration or mortgage offer for confirmation.

If it's SVR you are possibly giving up a good follow-on rate just to get a year and a half a bit cheaper...

betmunch

kingstreet wrote: »

Damn! 'munchy beat me to it.

BOOM!!!! Right place right time! Your a lot more prolific than me here though!

I think June 2008 might just be long enough ago, cant remember for sure so well worth checking

kingstreet

The change to BMR follow-on was from the end of April 2009 according to this Guardian article;-

http://www.guardian.co.uk/money/2009/apr/27/nationwide-base-mortgage-rate

Sounds like the OP is still going to get SVR when his fix expires.

opinions4u

The more we delve, the more this brokerage sounds like a crock.

magpiecottage

Getting back to the original post.

If you go to the shop to buy a loaf, they will charge you more than it costs them to put it onto the shelf. The mark up is their profit. That is the same whether it is a big supermarket or a local baker.

Imagine if they said to you that instead of paying them £1.50 including, say, a 30 pence mark up, you paid them £1,890.30.

Then, for the rest of your life, you could have all your loaves for £1.20 each (ignore inflation for the purposes of my point).

Would you do that?

Or would you think "What if I move away or somebody else in my family does the shopping, or I find their bread changes and is horrible, or they go bust or I find a dead rat in a loaf?. What if they give me mouldy bread because they know I have invested an extra £1,890 in them so I am going to have to come back to them?"

I trust you understand my point.

p_wallior

Thanks to everybody who responded, it really helped me reach a decision and that was to stick with my fixed rate for another 18 months and ditch the broker. I had to conclude that it was plain bad advice.

The other great thing that came out of this is that I checked my mortgage term and it does state that the BMR I am due to revert to following my fixed rate deal is guaranteed to not exceed 2% above BoE rate.

That makes the broker's advice doubly bad, as he should have known about this...

Once again, thanks for all the help and avice! :beer:

dunstonh

That makes the broker's advice doubly bad, as he should have known about this...

Just because you didnt follow the advice, doesnt mean you cannot make a complaint. Whilst you will have nothing to gain from it, it does go on the compliance file for that individual and if he has a network or is an employee then that should result in him getting training and be placed under greater supervision. You may not be the only complaint either and it may help identify a trend.

As an employer, I would want someone to let me know if one of my mortgage advisers was doing this as it is placing my firm at risk.