Is my Mum getting robbed? Please help

simonjfisher

I think the comment:

Obviously they will reccomend what is best for them and not best for mum

is not very fair on the broker concerned.

Without all of the information to hand which would involve a full fact find it's hard for any of us to comment on the deal. Most brokers do do what is the best for the client and not for themselves, but like all industries there are exceptions.
Good luck with sorting it one way or the other though!

bestyman

I think the comment:

Obviously they will reccomend what is best for them and not best for mum

Is a fair statement to make. When you phone up BT for price plans do they tell you about 18866? of course not.
When you go to swinton insurance brokers do they tell you about tesco online? no.
In any event the name of the broker or lender were never mentioned. . Applying the same logic to mortgage brokers seems perfectly reasonable to me. I never implied he was unfair, although like you say it is a possibility.
So thats why I posted on here to try find if the deal offered was reasonable, basicly 7.1% apr considering the circumstances.

Paul

simonjfisher

Fair enough but BT don't advertise themselves as independent brokers of telephone services do they?

If this broker does say he is independent it is not fair to automatically assume he is a 'rip-off merchant' just like it is not fair to think bad of estate agents (I used to be one), double glazing salesmen (I dabbled for a few weeks), plumbers (no previous experience) or garages (I've got a car).

As I said previously, the deal doesn't sound too bad considering the circumstances and the APR is not the be all and end all. The only way to be completely sure though is to go through the whole fact find process with an independent broker and compare the results.

I just love these forums and the healthy debates they provide

Simon

dunstonh

Independents recommend from product providers that make their products available to independents. Not all providers do and they will not be provided. Tesco online use Norwich Union for life cover and Norwich Union quote to independents. Depending on the turnover of the independent or network they belong to, the premiums will be agreed. The difference in premium between independents doesnt make them any less independent.

I would equate BT to an insurance company or mortgage provider. Of course they are going to tell you only about their products. An independent could be compared perhaps with one of those websites showing a range of telephone deals and which ones are best.

I agree that we don't know enough about this mortgage advisor to say he has done anything wrong and from what has been posted, there appears to be no problem.

Debt_Free_Chick

Just curious

Why does she want to sink £75,000 into a property, coupled with £52,500 of debt?

bestyman

Hi all,

I love these forums too.

Perhaps I could have worded it better . Rather than say "Obviously they will reccomend what is best for them and not best for mum" I should have said "that he will reccomend that best product that he has available and better deals may be available elsewhere"

But my Grandad always used to say "never trust a man in a suit", only joking ;o). Seriously thanks for the replies.

Debt free chick , The house costs 127k and she only has 75k so she must get 52.5k of debt. I don`t know if she knows why she is doing this and neither do I.
75k does not buy a nice house round here so if she wants the house thats what she pays. She needs a large house to get income from her lodgers.
From a business point of view the lodgers will cover the mortgage and leave a tidy profit at the end of each month so not a bad plan.
Like I said before my mums daft but she isn`t ( does that make sense?)

Paul