Some questions RE: my mortgage broker

dimestorediamond

Hi all, hoping I've come to the right forum for this.

I'm currently in the process of my first house purchase. I've got an AIP, I think my broker has submitted the application and Ive just returned my signatory pages of the paper work to the broker.

I've declined to go for their quotes of building insurance as I'd found cheaper and also declined to take up life insurance - he hasn't pressed me to take it up but was a bit insistent I look over this at a later date. Can anyone tell me if this is really something I should be looking at? I am 31, non smoker, currently in good health with no partner or children. In the event of my death, my house would simply go to the bank if necessary. I feel fine with this but I feel like I want a sense check here.

Additionally, he's sent me the information to pay the broker fee, although telling me there is no rush. At what point should I pay this? I've not had my mortgage offer as of yet, so feel paying immediately is a little early?

I appreciate that I am probably stressing about this too much, but like a lot of people I guess, I am anxious about the outcome of the mortgage and if its as simple as a life insurance policy then I'll blaming well take one out if need be.

Thank you.

amnblog

You should pay the fee when it is due. What do the terms say? Presumably, you would not be invoiced unless it was due.

If you have no concern about the property ownership on your death life insurance has no value for you. Are we sure you were not being recommended critical illness cover with life insurance built in- which would make more sense.

minimike2

You would be better off looking at PHI rather than life cover.

Also with B&C, just remember you get what you pay for. Most of the policies on these aggregator websites are not worth the paper they are written on.

dimestorediamond

I haven't had any paper work regarding the broker/their fees and terms for paying. They came highly recommended by a ridiculous amount of people and are definitely the down to earth, casual sort.

It honestly didn't cross my mind that I should've had any paperwork regarding it until I came here There is no invoice, just a note within an email giving me the business payment info. I guess if anything, I would just have expected an invoice via email/post at some point.

As for the alternative quotes for B&C - I bore that in mind, that cheap gets cheap. I've gone for a company with a 5* Defaqto rating and googled reviews etc. They are a well known insurance company. It's not such a drop in costs that makes me think I'm getting a dud policy but it does save me a few quid to be a difference.

I don't even know what PHI is but I am off to google!

dimestorediamond

amnblog - there is critical illness included in the policy - the quote is cheap from the broker however I noticed when reading the quote info it might've been so cheap because they've accidentally typed the wrong year of birth and I am ten years younger than I actually am on it.

ACG

As amn says, the fee is payable when it is due. You should be crystal clear when it is due - it will be on the illustration under the fees section if nowhere else.

In terms of insurance, you ar eunder no obligation to take any out for the Mortgage. Appreciate what you are saying about if you die that nobody will have a massive debt they are unable to pay but the other thing to consider is if you hold fire before taking out the cover, you may get medical conditions in the meantime meaning insurance is either more expensive/difficult to get/has exclusions - if you are happy taking the risk on that front, so be it. Better to have the conversation now and you decide you do not want it, rather than in 5 years time when you need it and ask why they did not discuss it with you.

The being said, I am with minimike, I would definitely look at PHI.

If your DoB is wrong, the premiums will jump up.

dimestorediamond

ACG wrote: »

As amn says, the fee is payable when it is due. You should be crystal clear when it is due - it will be on the illustration under the fees section if nowhere else.

In terms of insurance, you ar eunder no obligation to take any out for the Mortgage. Appreciate what you are saying about if you die that nobody will have a massive debt they are unable to pay but the other thing to consider is if you hold fire before taking out the cover, you may get medical conditions in the meantime meaning insurance is either more expensive/difficult to get/has exclusions - if you are happy taking the risk on that front, so be it. Better to have the conversation now and you decide you do not want it, rather than in 5 years time when you need it and ask why they did not discuss it with you.

The being said, I am with minimike, I would definitely look at PHI.

If your DoB is wrong, the premiums will jump up.

Unfortunately, I am not crystal clear. As above, no paperwork received. I had the price quoted over the phone, confirmed in person and again mentioned in the email with the banking information. It quite literally says 'no rush' in it. I guess I was just hoping, there was a typical sort of time to do these things.

ACG

It really does vary, some charge on application, some of offer, some on completion and some break it up over stages. Personally, our invoice gets sent after your Mortgage has been offered.

I took the view that you came to us to get a Mortgage, so once it has been offered we have done what you wanted - although we are still on hand through to completion.

I find it odd that it has not been disclosed when charged. I dont understand how you can discuss it verbally and in an email but fail to say when it is due. As I said, have a look on your illustration, it will say on there.