Getting second opinions on mortgage advice?

florence4

I have had a mortgage illustration from one mortgage advisor recommended by a friend, but I'd like a second (or third or fourth!) opinion... Is there any reason (legal or etiquette) I shouldn't ask other mortgage advisors for their advice too?

I have had trouble finding good independent advice, apart from this one person. I contacted London & Country (recommended here and elsewhere) but they have failed to keep a phone appointment or call me back, so other recommendations would be very welcome

My situation is this...

I own my current home outright (no mortgage). It's valued at approx. £105-110K. I'd like to take out a buy-to-let mortgage on this house to release some capital to buy another, slightly larger home, also taking out a residential mortgage to purchase this. I have found a house I like which is on the market for £132.5K. I have savings which will cover fees.

The quotes/illustrations I have so far are as below. I'd be interested to know whether they sound like 'good deals'... I'd also be interested if anyone can recommend deals/providers that I should specifically ask an advisor to look at for me.

These figures feel affordable, so if anyone can recommend products that have lower overall costs but slightly higher monthly payments, I'd be interested in these too.

And since I'll be paying 'double fees' (i.e. on two mortgages) lower fees than these would be attractive as well!

Thanks in advance for any advice anyone is able to give me.

BTL:
Property Value £110,000
New Mortgage: £77,000
4.59% Fixed for 2 years
Arrangement Fee: £995
Booking Fee: £99
Std Valuation Fee: £132
Cash-back: £500
Interest Only – 20 years
Early Redemption Penalty 2.5% loan amount
Anticipated rental: £500
TOTAL PAYMENTS: £299pm

New purchase:
Property Value £140,000
Deposit: £77,000
New Mortgage: £63,000
2.28% Fixed for 2 years
Arrangement Fee: £995
Booking Fee: £99
Std Valuation Fee: £163
Capital & Interest Repayment – 20 years
Mortgage Payment: £333pm
Mortgage Protection: £30pm
TOTAL PAYMENTS: £363pm

Thrugelmir

What's the follow-on rate on the BTL mortgage after the fixed term has ended?

ACG

If you want alternatives tell your current broker.

I would be a bit peeved if someone either:
a) used me for a second opinion
b) went off to get a second opinion on my advice without even running their concerns by me.

There is no reason from your point of view (as the consumer) why you shouldnt, i can only give you my opinion from an advisors point of view.

If you have had a recommendation and they have done everything asked of you, then i cant see why you would want to go elsewhere.

florence4

Thrugelmir, according to the notes I made during our initial 'phone convo, 4.59% is the APR after fixed term, and there's a 2% discount for 2 years.

ACG - she's gone on holiday, and I didn't know she was going 'til I got her email auto-response. I can't make an offer 'til I have an agreement in principle, and I'd like to...

I'm not sure why you would be 'peeved' tho'. I'd be free to get advice from many/varied sources about most/all other issues (e.g. health, legal, career, schools for my kids...) Why would mortgages be any different? - Especially considering that (a) they are probably the biggest financial arrangement I'll make in my whole life and (b) whoever arranges them stands to make good money from me

ACG

Because advisors have sat 2-3 exams (Depending on the route they took), they do mortgages day in day out.

In my eyes it shows a lack of trust in your advisor. You could argue thats the brokers fault/problem but in my eyes i do my best by my clients - it makes no sense not to, which is why i would be a little peeved.

I suppose the out of office without warning is a bit annoying from your perspective though.

dwsjarcmcd

Why don't you spend a couple of hours researching rates you can achieve without using a broker? You haven't said who the lenders are but for the non-BTL property in particular, there are several lenders who lend direct who have competitive products.

My only other thought is to increase the amount borrowed on the residential property and decrease the amount on the BTL by the same amount because of the rate advantage.

opinions4u

ACG wrote: »

If you want alternatives tell your current broker.

I would be a bit peeved if someone either:
a) used me for a second opinion
b) went off to get a second opinion on my advice without even running their concerns by me.

There is no reason from your point of view (as the consumer) why you shouldnt, i can only give you my opinion from an advisors point of view.

If you have had a recommendation and they have done everything asked of you, then i cant see why you would want to go elsewhere.

Unfortunately you work in an industry where others may not operate to the same standards and ethics that you do.

Verifying the quality of recommendation with readers of a forum like this makes sense to me.

Seeking out alternative advisers also seems reasonable if you are prepared to commit the time to it - and won't get multiple charges.

florence4 wrote: »

I have had a mortgage illustration from one mortgage advisor recommended by a friend, but I'd like a second (or third or fourth!) opinion... Is there any reason (legal or etiquette) I shouldn't ask other mortgage advisors for their advice too?

Check out what you've agreed to pay if you don't go ahead with your adviser - or any others that you speak to.

florence4

ACG, I suppose I don't see her as 'my' broker yet. I received a recommendation from a friend... I had a 20 min phone conversation with her... She emailed me confirmation of our discussion... When I sent her back some questions, I got the auto-response saying she was away...

From my point of view, I am looking for a broker I can build up a trusting relationship with, and having brief initial conversations with a number of different people and asking for their initial advice is how I would like to do this.

dwsjarcmcd, thanks The amount I can borrow on my residential is limited by my income, which is relatively small because I am in part-time employment. I have some self-employed earnings too, but don't want to use these, since they're very variable (and the rates are likely to be higher). As I understand BTL, a higher loan % gives greater 'leverage' in any case... So it's swings and roundabouts perhaps...

I have spent a couple of hours on online research, but find it hard to compare, since different websites present info in different ways, and this is all so new to me. If you (or anyone else) could point me in the direction of lenders who generally offer good deals, whom I should definitely check out, that would be much appreciated!

At the moment, my own bank (Co-Op) seems to be offering a good deal on residentials - 2.99% above BoE lifetime tracker, with no penalties for leaving/switching after 3 years and no fees because I'm a customer... But are lifetime trackers a good idea?!

And I am still struggling to get good BTL recommendations...

opinions4u - thanks, that's good advice. I don't think that anyone could try charging me for a 20 min phone convo, esp if they advertise themselves as giving 'free mortgage advice'... But I should make sure! I am assuming that I should be able to get free advice and brokerage, because the advisor will get good fees for me!

GMS

Why did you select 2 year fixed rates? Had you considered a longer fixed rate which will offer greater security of payments? You say income is small so check payments after the fixed rate period.

Have you asked for options with no arrangement fees? With a relatively small mortgage there can often be a case for paying a higher interest rate with no arrangement fee. On a 2 year fixed rate you are paying £40 ish per month to secure a rate with a fee of £995. See if a fee free deal costs less over the period.

ACG

ACG, I suppose I don't see her as 'my' broker yet. I received a recommendation from a friend... I had a 20 min phone conversation with her... She emailed me confirmation of our discussion... When I sent her back some questions, I got the auto-response saying she was away...

From my point of view, I am looking for a broker I can build up a trusting relationship with, and having brief initial conversations with a number of different people and asking for their initial advice is how I would like to do this.

I take back my comments then, sorry. I thought you were further down the line and had met up done a factfind etc. I agree you cant build up the "relationship" in a 20 min phone conversation and an out of office auto response.

I think i would probably look elsewhere of they hadnt told me on the phone they would be away the following week.

Dan-Dan

We met our broker last week , some of you would know him , anyway , we think a relationship starts once you have done the factfind etc and had a face to face as we have...