This offset mortgage any good? Firstdirect

mark101

Not too impressed by L&C Brokers. They came back with a rate of 3.99%discounted rate. No setup fees

300k Mortgage can't seem to beat the below. They have 2 year repaymentoptions also but I need the additional flexibility to withdraw.

Life Tracker Offset - Limited Edition
Max LTV 65%
2.58%
Overall Costs for comparison 2.7% APR
Arrangement Fee £1,499
Legal Expenses covered
Valuation not covered

betmunch

They wouldnt recommend First Direct as L&C are Whole of Market.

I've just been arguing this with an Estate Agent who swears blind they would offer clients direct only deals!

Thank you for proving MY point, now to get him to read this thread.....

mark101

No prob, really disappointed though, you’d think a broker would get you thebest possible rate as they at the end of the day charge for their services oneway or other in my case the charge they would get from the mortgage is £999. Sofor the rate they've given me I wouldn’t give em £0 nor would recommend!

I've applied for the stated first direct deal. If in the meantime anyone sees better let me know!

The_J

You can only apply for First Direct directly (clue in the name?). They are not available through intermediaries.

No idea why an estate agent would think that any broker can offer direct deals, pretty sure the FSA would also like to hear about brokers recommending deals they cannot get criteria information on.

edit: to clarify, this doesn't mean a broker cannot tell you about them.

betmunch

What about ING direct? Thats got direct in the name but you can go through an intermediary.

In this situation I think he said it as he was told by L&C. Independent Advisors can advise on direct deals though.

The_J

betmunch wrote: »

What about ING direct? Thats got direct in the name but you can go through an intermediary.

In this situation I think he said it as he was told by L&C. Independent Advisors can advise on direct deals though.

I call them ING only, my game my rules

Anyone can advise on direct deals but a broker can only really be liable for the products they can arrange.

betmunch

Fair enough, I call them "ING" too so will give you that!

I thought if you took a fee then you are liable for the advice no matter how it was arranged?

If thats not true then how does being Independent differ from WoM?

The_J

Well I'd think that would be a little harsh on the IFA if the direct lender isn't particularly forthcoming with aspects of the criteria?

betmunch

If a lender wont give out info relevant to the application then they cant be recommended though can they?

ie. I ring up HSBC and say I have a client with 2 BTL's in the back ground will you reduce the lending shown on your affordability calc because of this. They reply "not telling you"

Then when I am discussing with the client what deal is right for them I will say HSBC wont confirm that having 2 BTL's in the background is OK therefore I cant recommend them.

The client is paying for the advice as well as the the actual physical filling out of the forms and admin so why shouldnt the adviser be responsible for the advice?

The_J

That's exactly what I mean, if HSBC won't tell the broker something then they cannot be recommended. The customer could still go to HSBC and it could be absolutely fine but they shouldn't then whine about it.

betmunch

Yes, absolutely. If a client isnt happy with why a lender has been excluded then they can go direct to the lender, but then they are taking responsibility for the choice on themselves. If you are confident enough to do that then why see a Broker in the first place?