Mortgage advisor

Ecokev

After a bit of advice, mortgage is up in a few months, we generally go for 2 year fixed deals as advised, last time round I spoke to him about trackers and he said its not worth it, 2 years in he was massively wrong, we could of been on a tracker paying £400 a month and if we kept paying the same we was on a fixed we would of bitten a huge chunk off our mortgage, anyway, did a boiler change for him a few weeks back and was saying how probably best switching to tracker this time and he disagreed, so would I be right in thinking he gets more commission off fixed price and doesn't want to sell trackers or have I got something wrong as the maths don't add up.

Senior_Paper_Monitor

No you wouldn't be right ! I know of no lender(s) paying more commission for fixed than for trackers/discounts (or vice versa).

Adviser's are not there to 'crystal ball' what is going to happen to interest/SVR rates - they are there to help you evaluate (on an informed basis) whether you can justify the risk of a variable rate - and possible losses/gains - against the safety of a fixed rate.

No-one forecast, even several months into the 'credit crunch', where interests rates were going or how long they would be there.

We are often asked our opinion on what will happen to rates (indeed we have just published a compliance approved article warning of the likelihood of SVR rates creeping up) and we will express opinion - making it clear that it is educated opinion (NOT advice) - but advice on what to do is not based upon likelihood of accurate forecasts but, primarily, analysis of the clients' potential vulnerability or otherwise.