Coventry BS 5.85% deal...any better

ferry

I'm with Coventry BS at the moment and will need to remortgage at the end of June so looking out for the best deals.
Coventry have offered 5.85% fixed for 2 years.
Is this a good deal or has anyone come across any better?

Thanks
T.

MortgageMamma

There must be loads better than that, speak to a broker...

ferry

Cheers MM
Basically I'm trying to go it alone to avoid broker fees.I guess I need to ask really if this is possible.
I understand that there may be deals out there that brokers can only have access to but is it really possible to go it alone to successfully to keep costs down?

Terry

MortgageMamma

It is possible but its costly if yu make a mistake

If you have paid someone a broker fee before it is understandable that you would assume we all charges broker fee's - we don't in fact there are loads of us brokers who will work for just commission, I see you are in Luton, granted most brokers in London charge a fee but I know of at least two who don't so it goes to show there are some out there even in London!

ferry

Thanks MM for the ongoing advice.
Would you be kind enough to explain in black & white how fee free works..I mean looking at it I have the option of paying a broker to find me the best mortgage deal or go fee free for the same service?

Does the broker get paid by the lender if business is eventually placed through them.Afterall why would I pay the broker if the lender will?

Thanks for the advice on this...

Regards
Terry

sweetmoneysaver

I have used an adviser before. I can put you in touch with one that is in Letchworth ... not far from Luton and he does home visits and will hopefully cover Luton. If you PM me I can give you his number. Basically he gets a very small fee from the lender each month that the product is active. You pay absolutely nothing to the broker.

MortgageMamma

ferry wrote: »

Thanks MM for the ongoing advice.
Would you be kind enough to explain in black & white how fee free works..I mean looking at it I have the option of paying a broker to find me the best mortgage deal or go fee free for the same service?

Does the broker get paid by the lender if business is eventually placed through them.Afterall why would I pay the broker if the lender will?

Thanks for the advice on this...

Regards
Terry

Of course, my pleasure

Right to start with there are four different types of market access a broker has

1. Tied to one lender - for example, someone who works in HSBC or Abbey in the branch. These can only advise on their own product range.

2. A broker who has a panel of lenders to choose from e,g, 20 lenders pre set by the brokers employer/network. They are not allowed to go off panel so will always recommend from the lenders they have. These are most commonly found in estate agencies

3. A broker who has access to the whole of the lenders on the market place that pay commission (known as whole of market) or alternatively a panelled broker who is able to go off panel whenever they like - these are usually self employed brokers with their own practices or self employed working for someone elses practice - these brokers may or may not charge a fee but you will always be advised at outset

4. A broker who has access to all in point 3, but also will research and recommend from lenders who do not pay a commission, such as HSBC, EGG, ING, Brittannia and Yorkshire Bank. These brokers will usually charge a fee for including the non commission paying lenders, which can vary in amount. VERY RARELY you may find a fee's free broker who will include non commission paying lenders in their research.

Confused? Ok, let me help you out, you either need a fee's free number 3 or 4 to get truly whole of market advice.

Some people would argue that a broker who does not charge fee's would always recommend the product that earns them the most commission, that is simply not true - as brokers we are vetted and inspected periodically on the quality of our advice and any discrepancies would have to be explained to our compliance/regulatory body.

Next bit

With regards fee's

A broker may work for commission only

or

fee's and keep the commission too

or

Fee's only and rebate all commission (if any)

which way it works depends on the broker and your agreement with them, but the most important thing to consider (if you do use a broker who charges a fee) is that they will offer you a refund in certain circumstances i.e. if there is a problem that is NOT YOUR FAULT

I think thats enough for now:eek: and I hope I have answered your question

MM

Jeannine

I've just remortaged from the Coventry to ING Direct. I'd been with Coventry for four years but they didn't even bother to contact me to offer me any deals when my mortgage with them was due to end. When I phoned them, I was told that I could take any of the deals available on their website - nothing else. None was very competitive and most had high arrangement fees, which I did NOT want to pay, so I moved...

Is the deal you are referring to the one at 5.89% fixed or have they offered you something different? I'd be interested to know!!

littlesos

Derbyshire are doing a remortgage at 5.6%, fixed for 3 years, No 'standard' valuation fee, No 'standard' legal fees for remortgages, Daily interest calculation for capital repayments, Overpayments of up to 10% per year can be made without early repayment charges

herbiesjp

ferry wrote: »

I'm with Coventry BS at the moment and will need to remortgage at the end of June so looking out for the best deals.
Coventry have offered 5.85% fixed for 2 years.
Is this a good deal or has anyone come across any better?

Thanks
T.

WHether or not it is a good deal will also depend on your mortgage amount and the exit fees from Coventry and set up fees for the new lender (if there are any)

What mortgage amount are you looking at?

ferry

£110k on a property valued at £240k ..