Mortgage advisor question

boopydoo

My partner and I went to a mortgage advisor and got the info we needed. We are planning To put an offer in this month on a house we like.

The mortgage advisor told us that she doesn't charge a fee but on the information sheets she gave us comparing the mortgages it says she charges £300 if we don't take out an insurance policy with legal and general.

My question is: what sort of cover do legal and general provide compared to others? Is it worth taking it out with them?

Also if we went straight to the best lender (Halifax) would we get the same deal she had showed us?

Thanks

GMS

Find another broker. Underhand tactic in my opinion and hardly transparent if it wasn't stated verbally.

Why are Halifax the best lender?

boopydoo

Halifax had best rate and no upfront fees

She did have a sign up saying they generally don't charge a fee but if hey did it would be no more than £300.

She also said she was whole of market so would another broker have any other deals or should I just go straight to halifax

GMS

What loan and purchase price/valuation?

What type of mortgage are you looking for? Fixed/tracker etc? Term of fixed/tracker?

Income(s)?

Clean credit?

boopydoo

House is £80000 we have £8000 deposit
Looking fixed for 2 years

Combined income is £48k partners credit rating is very good. Mine has a few CC defaults from 3 years ago

GMS

Defaults or missed payments?

If defaulted how much for and when?

boopydoo

My mistake they were missed payments. Can't even remember now how much they were sorry but I would guess around £20 as it was minimum payment

ACG

L&G's cover isnt bad. I wouldnt say its the best but there is nothing wrong with it - i wouldnt have a problem recommending it to my clients anyway.

The deal that she has offered you, how does it compare with what you have found. If its not as good, is there any reason why you need the broker? Why not go direct?
If you have an unusual case then it might not be possible to do that.

Personally im not a fan of where your tied into an insurance product for 2-4 years - circumstances can and do change.

kingstreet

ACG has hit on a good point.

Not only do you have to take L&G cover, chances are you have to keep it going for four years, the typical clawback period.

A £72k mortgage is going to earn the adviser £216 or thereabouts, so I can understand the need to charge a fee, or try to increase earnings from commission.

Sometimes, the amount of work involved is simply not compensated by the commission on a small case.

I presume this is an L&G tied agent?

droiderm

I have came across some "builders brokers" who have a similar requirement.
For that reason, I am going to try not to use them.

Unfortunately for Nationwide NewBuy, you can't go direct.

I might just have to swallow the £250 they want, unless their insurance is competitive.