Any reason not to mortgage with bank?

HelpfulHound

I've been looking through all the mortgages available to me and it seems that for my situation some of the mortgages offered by my bank are actually very competitive. I have compared these against the mortgage comparison tool on the MSE website, other comparison sites, and other lenders, a broker, and it still comes out as (as far as I can tell), very good.

But my father is absolutely adamant that banks don't offer as good services as a building society, that they won't be as good as re-mortgaging later when the fixed period ends, going as far as to call getting a mortgage from a bank a 'stupid idea'.

So are there any reasons in principle that getting a mortgage from a bank is a bad idea? I know one shouldn't just go for the ones on offer from your bank without checking others but in my case they genuinely seem like a good deal. Anyone have any thoughts/advice?

ashp_2

My thoughts are that you should take the best deal available

pelirocco

You should go with who ever offers you the best deal . Tbh I'm not sure what service he is referring to , all you need them to do is lend you the money at the best rate , and the least restrictive terms , and never hear from them again

Sheep

Never hear from them again until the fixed rate is up and the interest rate has nearly trippled.

I see what your dad is saying. Look at the overall picture. Whats interesting is im currently moving from Leeds Building Society to HSBC because once my fixed rate ends the SVR is ridiculous. Even if i look at their retention products they are still alot higher than new customers only. I believe Nationwide are better than Leeds on that front.

HelpfulHound

What's interesting for me is that the bank in question is HSBC, and currently their SVR is the same as or lower than the other banks/building societies I can find.

DML025

I would always recommend you use a broker. Pick one that comes recommended and let them deal with the bank or building society. If you've got a good broker and you get a good rate, happy days.

HelpfulHound

Why would you suggest a broker?

We have been speaking to one and almost went through the process with them, but they are only applying for a mortgage that we would be able to apply for ourselves anyway.

wantonnoodle

I would suggest a broker for several reasons.

1. They can advise on what would pass affordability criteria and make sure you are looking in a price range that is realistically affordable in the future, even if the lenders will lend more.
2. They generally know the lending criteria for a particular lender and will therefore be able to match your financial profile to the lender most suited (some may not like particular types of spending patterns for example).
3. They tend to have a feel for which lenders have the best service levels - our broker had a choice of HSBC or the West Brom BS for our mortgage as these had the best deals, but the West Brom have a better customer service record, as well as the well documented issues around HSBC's conveyancing panel (search on this site and you'll find many a horror story).
4. They will keep the transaction moving forward if there are misunderstandings between the lender, the solicitors and the estate agent as they are able to take a holistic view of the process. Our exchange and completion would have been delayed if our broker hadn't stepped in to clear up the confusion between our solicitors and the West Brom, as our solicitors were waiting for some confirmation they didn't need and weren't going to get.

Generally, our broker was worth his weight in gold, and I would not hesitate in advising anyone looking to get involved in buying a house to find a good independent broker.

[Deleted User]

If you like HSBC, try First Direct (who are an online division of them). You'll find brokers won't/can't use them.

Great customer services, and usually very, very competitive rates. They are great on the phone and going direct with them was far, far easier than going via broker (and yes, I've done both - our broker was flipping useless).

Don't bother with a broker if you can do it yourself - their fee has to come from *somewhere*

foxy-stoat

HelpfulHound wrote: »

But my father is absolutely adamant that banks don't offer as good services as a building society, that they won't be as good as re-mortgaging later when the fixed period ends, going as far as to call getting a mortgage from a bank a 'stupid idea'.

Maybe he is one of them folk that renting = dead money and he drives an additional 15 miles to save 2p on a litre of fuel!


Just choose the best deal at the time, when your fixed rate is due to end test the market again.

[Deleted User]

foxy-stoat wrote: »

Maybe he is one of them folk that renting = dead money and he drives an additional 15 miles to save 2p on a litre of fuel!


Just choose the best deal at the time, when your fixed rate is due to end test the market again.

If you rent for 25 years in the same place.. yes, renting is dead money! It's only useful if you are looking at not having a fixed 'home' for that long.