First time buyer - worried about credit history.

acquabloo

Thank you - that makes sense! Easy to understand when you guys phrase it for me.

BoracicLint

grey_gym_sock wrote: »

the commissions paid by lenders are mostly about 0.3% of the mortgage value, so you can compare that with what the broker would charge for independent advice.

you should get better advice when it's independent, because then they can select mortgages which don't pay any commission to brokers.

Probably a daft question, but what's stopping an 'independent' advisor from taking a fee and still recommending a product with commission? - apart from their conscience of course!

grey_gym_sock

if they are acting as an independent, then they rebate any commission they receive to you, or offset it against the fee you're paying them.

and the best product may well be 1 with a commission.

harvey115

BoracicLint wrote: »

Probably a daft question, but what's stopping an 'independent' advisor from taking a fee and still recommending a product with commission? - apart from their conscience of course!

That is a good point and this is where the KeyFact data comes handy.

When you speak to an advisor they would give you full details on their charging structure including a KeyFact document as well, if they are FSA regulated. This should show exactly what they will charge in terms of % and if they would rebate the commision if charging a fees.

Once you have an AIP, you would see all the details of the deal including the commission by the lender in the KeyFact doc. On full application you would also receive another KeyFact from the lender again to show you exactly what the deal is including the commission amout.

So nothing is hidden, if you find out that your advisor is breaking the terms of the contract between yourself and them. You are free to complain to the FSA.

Hope this helps.

spenceeyftb

acquabloo wrote: »

Thank you - that's most helpful. From what I have read/heard Halifax seem a good option.

I don't think I have ever spent so much time looking into something as I have with this - its taking over my life!

Don't worry I'm exactly the same. It's such a big amount of money you really want to make sure everything is right. We are now in the same boat as you really - looking at every area weighing up the pro's and con's - need to be near family but at the same time near work. It's all about compromises I think.