Reeds Reins Broker Service

hoot68

Morning all,

I'm just looking for a bit of advice as a FTB. I recently attended a meeting with a Reeds Rains broker representative. The initial meeting was free and we ran through some helpful info and obtained a provisional mortgage agreement with Halifax.

The broker is whole of market, but there is a fee of £599 payable upon mortgage application. This fee however means that any future remortgages or applications will be free of charge when going through this broker.

Is this a good deal or is there really no point going with a broker unless fee free?

Many Thanks

betmunch

I have a freidn who recently left Reeds Rains due to the management wanting him to use extremely high pressure sales tactics to get the clients, so please be warry of this.

I dont know how many lenders Reeds Rains use, but for truely whole of market advice you need to use an independent broker as they will include non-commission paying deals which reeds rains wont

For me paying on application is a bad idea, if the application fails at underwriting stage, which happens regularly then you cannot get your money back. Also, I believe £599 plus commission from the lender to be a bit steep. I would suggest paying £599 for fully independent advice would work out much better for you.

Also I believe (although could be corrected) most brokers expect to be paid on successful completion of a mortgage application.

Dave_Ham

I concur with Betmunch, Estate Agent brokers are typically the worst out there and inexperienced also...

I would charge a fee upfront if giving independent advice, as it is the advice the client would be paying for and therefore it sets expectations. That said, clients would get my absolute focus and attention and would easily, easily save this over and above by different deals from the Halifax.

Halifax have a place in mortgage world, although not for a straight forward paye case with good credit as there are much better rates available.

Good luck...



Dave

GMS

The 'future mortgage applications will be free of charge' line is a joke. No guarantee that they will be operating in mortgages in the future.

If you are not happy with the fee then you should not have gone ahead with the decision in principle. You are now in a position where they want you to be. Seemingly half way there with the fee half in their pocket.

If you dont want to pay it either renegotiate with them or walk away and find somewhere else.

hoot68

GMS wrote: »

The 'future mortgage applications will be free of charge' line is a joke. No guarantee that they will be operating in mortgages in the future.

If you are not happy with the fee then you should not have gone ahead with the decision in principle. You are now in a position where they want you to be. Seemingly half way there with the fee half in their pocket.

If you dont want to pay it either renegotiate with them or walk away and find somewhere else.

Sorry, perhaps i should have been more specific. The DIP is from Halifax simply because the broker advised they wouldn't be doing a full check on my credit file and therefore have any adverse affect. He made it very clear that the best deal will not be form Halifax and that when actually applying for my mortgage in full, they will most likely not even be considered.

I'm a FTB, with 20% deposit of £25k and excellent credit score. An example rate he found to give an idea of the market when i come to apply in full was 2 year fixed at 3.79% with Woolwich.

I am in no way obligated to this broker, have signed nothing and simply went for free initial advice. I and am still open to use anyone else or indeed myself. I was asking here if i should look elsewhere or if the service offered here was decent. Having just looked over their offer of service again, it is a one of fee of £499, paid upon mortgage application - no obligation beforehand.

So i imagine my question still stands - or rather, can anyone point me in the direction of independent brokers they believe may offer a better service in this case.

Many thanks again

The_J

That's expensive for a small mortgage.

You've got a choice between a no fee broker (Martin recommends these because they are free not because they are necessarily better, whole of market, won't recommend direct deals) or paying a fee to an IFA who will refund the commission (£400 say, if he gets you something that pays commission) or tell you what the best rate is.

betmunch

Dave_Ham wrote: »

I concur with Betmunch, Estate Agent brokers are typically the worst out there and inexperienced also...

Dont forget its a training ground though, thats why you get inexperienced advisors.

Once you know what your doing, if you have morals, you get out and start Self Employment!

DannyboyMidlands

Just source and apply for your own mortgage. It's no more difficult than shopping for anything else. The internet is a wonderfull tool.

This is a good place to start:

http://tables.moneyadviceservice.org.uk/Comparison-tables-home/Mortgages/Compare-mortgages/

Dave_Ham

DannyboyMidlands wrote: »

Just source and apply for your own mortgage. It's no more difficult than shopping for anything else. The internet is a wonderfull tool.

This is a good place to start:

http://tables.moneyadviceservice.org.uk/Comparison-tables-home/Mortgages/Compare-mortgages/

Yeah - its just like picking out your favourite new handbag!

Aside from if you buy one you do not like you simply cannot return for a full refund...!

Appreciate I took the bait, could not help myself...

DannyboyMidlands

Not intended as bait but as an alternative option for the OP.

Decide on the features you want. Find a good deal. Apply. It's not complicated.

Dave_Ham

Then check that both you (credit reports/visas/age/term) income (type/amount/contract) property (tower blocks/freeholds/leaseholds) and anything in the background fits their criteria as mortgages are not a one way street and they also have to select your circumstances..

I am not saying you cannot select yourself, of course you can but have your eyes open and you may not actually get the best deal..

Good luck