Whole of market broker not the best deal?

tinkerbelluk

Hi,

Another query sorry. We approached a whole of market broker for our remortgage and he has come back with a cheapest fixed rate of 5.69%. After a quick search on the web the cheapest I can get is 5.29%. So my question is that if he's a whole of market broker how come I can find cheaper deals myself

This post is not meant to annoy anyone I am just genuinely concerned he's trying to not give me the best deal.

Rick62

It could be that his deal is cheaper taking account of all fees etc and your circumstances.

There are also some lenders that do not generally lend through brokers (i.e. don't pay proc fees), although also many lenders who only lend through brokers and others who give special rates only through brokers.

Ask your broker why the 5.29% deal is not as good.

dunstonh

The best deal isnt always the one with the lowest percantage.

For example, one deal may have 5.29% but has £2000 of charges (arrangement fee, valuation fee, MIG etc) to arrange and the other has 5.69% but has no charges. The cost has to be looked at over the term.

As Rick says, some deals are not available through brokers.

toonfish

who is the 5.29% with - a lot of the cheaper fixed rates from th elikes of C&G and Northern Rock are stepped rates over 3 years so they average out much higher than the initial rate.

tigerminxy

You can get 5.29% over 5 years with Leeds BS with £699 completion fees.

dunstonh

The Leeds 5.29% costs more than the Woolwich 5.69%

The costs for comparison come out at 6.8% on the Leeds and 6.3% on the Woolwich.

tigerminxy

dunstonh wrote:

The Leeds 5.29% costs more than the Woolwich 5.69%

The costs for comparison come out at 6.8% on the Leeds and 6.3% on the Woolwich.

Wouldn't it be better to look at the true cost over the term of the offer, i.e. 5 years?

tinkerbelluk

Thanks all - I understand wht you are saying but he didn't come back or try to explain why he had recomended this specific one he just said heres the best deal.

Can you tell me how I work out the true cost over the term? Is there an online calculator I can use?

dunstonh

Thanks all - I understand wht you are saying but he didn't come back or try to explain why he had recomended this specific one he just said heres the best deal.

Ask him. That is what he is there for. He wont know that you dont know unless you tell him.

Also, ask to see the research. Indeed, if its face to face contact, you could sit there and watch him do it and see the different results come up and how tweaking things changes the order.

You get the best out of an adviser if you communicate well.

tinkerbelluk

Kuztardd - Thanks for that it's a huge help

Before I go on I should say, Mortgage is £145k over 25 years, we're raising extra capital for home improvments and our house is valued at £245k.

Basically this is the option he gave me:

5.69% Fixed for 5 years with Abbey, £599 fee (all other fees e.g. valuation, legals included).

After checking the Leeds deal it seems this wouldn't be the best for us as it's annual interest and it seems quite restrictive but I have found these other 2 I wouldn't mind compairing his to:

5.49% fixed for 5 year with Cheshire, £599 fee, valuation fee free of charge no mention of an other charges such as legal etc.

5.34% fixed for 7 years with Skipton, £599 fee (all other fees e.g. valuation, legals included).

Thanks again

tinkerbelluk

dunstonh - Thanks for that. I did ask him when he gave the figures to us and he didn't say anything. He just said heres the best deal. I mentioned that I had seen plenty or mortgages with rates lower than 5.69% and he just said well I didn't!

I'm not being funny I just want to make sure that if he is independent why can I get better rates myself

He was also double the price on mortgage payment insurance and £5 more a month on life with the same company I had got a direct quote from.

My query is that if I can get cheap deals myself is he really searching the whole of the market?