The benefit of IFA's

IveSeenTheLight

kingstreet wrote: »

Presumably, the above is a remortgage, where free valuation and free legals are still widespread.

It is a remortgage, but the free legals and valuation is not the surprising part, it's the no arrangement fee.

BTL and self build market have in recent years fleeced those looking for those products in a restricted market.

I'm genuinely gobsmacked to get an opportunity for no arrangement fee, let alone low arrangement fee.

michaels

Mine was a purchase not remortgage, fairly chunky loan so in theory fees would not have been an issue but given that I might only want to keep the property for a short period fees and ercs come in to play - hence the benefit of an svr deal rather than a discount.

Graham_Devon

michaels wrote: »

I think I have admitted before to having a vested interest in increasing house prices which I agree with you would only apply for a main residence if I had a poor LTV or was looking to downsize.

I have always been extremely prudent financially so it has never been an issue for me to suffer a period of reduced income.

I could also horrify you and admit that the btl is actually a sideline with returns that are only decent due to the current interest rate environment and that the opportunity for capital appreciation is a partial driver to my purchase but I fear you have a slight negative reaction to non-professional landlords and those holding multiple properties to benefit from HPI that results from constrained supply so I won't.

It was more how you told us of the benefits you were on a year or so ago that was the cause of my surprise.

From that to buying a second property on a 65% loan. Just a surprising turn around and somewhat confusing.

Thrugelmir

IveSeenTheLight wrote: »

I'm genuinely gobsmacked to get an opportunity for no arrangement fee, let alone low arrangement fee.

Then you've taken the bait.

There's a commercial reasoning behind the offer. Whether it be a drive for an expansion or merely utilising available funds.

michaels

Graham_Devon wrote: »

It was more how you told us of the benefits you were on a year or so ago that was the cause of my surprise.

From that to buying a second property on a 65% loan. Just a surprising turn around and somewhat confusing.

AFAIK neither child benefit nor working families tax credits took capital in to account during tax year 11/12 when I was on a reduced income because of being on a 2 day week as a result of the economic situaton at the time in my industry and these were the only two 'benefits' I received. My savings meant I was not eligible for countil tax benefit etc which would have unlocked other benefits like free school meals. I understand that UC will bring the capital rules into all UC benefit calculations?

Thank you for your concern that I was not inadvertently claiming incorrectly however.

IveSeenTheLight

Thrugelmir wrote: »

Then you've taken the bait.

There's a commercial reasoning behind the offer. Whether it be a drive for an expansion or merely utilising available funds.

Sorry, I'm not understanding your analogy.

To take the bait to me infers there is a catch unbeknown to those that bite.

Where's the catch?

Surely I'm getting a good deal / benefit from this product, so is this a sign of the market becoming more competitive?

gadgetmind

Graham_Devon wrote: »

I'll buy it for you! It's genuinely nice to hear of a landlord doing what you ave done. Unfortunately the renting board is full of differing stories!

A whole load of my employees rent (young, often from elsewhere in EU, best way to start off with) and they all seem happy to recommend their landlords and agents to new starters.

My daughter rents at uni and again, landlord great (but trying to sell! :eek:)

I guess you only hear about the problem cases.

Loughton_Monkey

michaels wrote: »

I could also horrify you and admit ........benefit from HPI that results from constrained supply so I won't.

You were right about horrifying some people..... or at least one.

Thrugelmir

IveSeenTheLight wrote: »

Surely I'm getting a good deal / benefit from this product, so is this a sign of the market becoming more competitive?

Lenders still have drawndown FLS funds to utilise. Hence the well priced 2 year mortgage products on offer.

Once the props expire. Then the market will start to normalise. As lenders are forced to pay the prevailing going rate to attract deposits..

MFW_ASAP

Graham_Devon wrote: »

It was more how you told us of the benefits you were on a year or so ago that was the cause of my surprise.

From that to buying a second property on a 65% loan. Just a surprising turn around and somewhat confusing.

A year (or so) is a long time, for example I added another £10k onto my salary six months ago by moving jobs (sorry I didn't clear that with you).

Looks like people on here are moving on - well those who aren't so afraid of their own shadows to even take the first step towards a better future...

Remind me, has anything changed in your life over the last 2 years, or indeed since you started posting on this forum?