Who to believe - L&C or Woolwich?

freda

Thanks all - I'll contact him later today and ask why the Woolwich deal is still available.

Its shaken my confidence in L&C - they found me a good deal and weren't at all pushy when I last used them. How do I know that this time they've offered me the best option for me? Especially as I reckon I've found a better deal....(see below)

Are the problems you describe with the Woolwich ones which would impact on the mortgage holder as well, or are they mainly with the application process?

I'll let you know what happens....

(Holmsdale offer a -0.1% product, with only £250 fees due to where I live. This seems better than Woolwich -0.06% with £995 fees? The only diff I can see is that Holmsdale calculate interest annually, which I don't understand the impact of.).

payless

yearly against annual - on a average 25 yr repay mtg the payment difference appears to be about 0.1% but as capital erodes differently its true difference is more like 0.05%
(roughly making up the difference in rates! )

based on your input - you are looking a 2 yr tracker

its easy for us to quote rates or for people to find them on internet... whether the lowest rate is always the best though is another thing

sounds like the deal ( with only £250 fees) is maybe a local thing ? that would make the deal you mention very competitve based on the criteria you mention... but a decent proper broker would not just "order take" based around restrictive criteria given by a client - they would look at some other factors and open them up for discussion with you

Proper advice would consider many other factors including freebies/ other fees ( have you loked at MEAF ?), likely follow on rates, likelihood of overpayments / moving ... whether to consider a no ties / longer term deal to avoid needing to swap again / flex to swap if feel keen to jump to a fixed at a later stage ( and thats before someone looks at criteria/ affordability/ suitability of variable )- some extra options might come at a slight higher cost - but might be worth it in long term

Of course you may not want to know the alternative products that don't seem to meet your criteria ( maybe some do, but are presented differently) but at least you would have been able to consider them.

Dan_Collins_2

I have spoken to and checked the Holmesdale and as a broker they do not really show up on the radar. They are a small Building Society and if you are out side of the 3 counties they cover you have to pay a valuation fee and get our own legal work done.

The deal is good but the rate turns out at about 5.7-5.8% once you take the annual interest in to account. I found a better deal with the Nationwide for a client but he was outside the area for free legals so it made sense!

Leon_W

It seems L & C had a bit of a heads up on this.

Received a long list of re-priced Woolwich rates this morning, residential and BTL, including the 2 year mentioned by the OP (up .2%).

As ever, Woolwich inpose a ridiculous timescale to get pipeline apps in. 5pm Friday 30th.

regards

Dan_Collins_2

They may have done but they gave the wrong info, Woolwich are great and communicating so why would L&C get a heads up?

Leon_W

Hi Dan

I would imagine that L & C put quite a bit of business to Woolwich so they may give them a nod and a wink when rates are going to change. As they operate as phone brokers, it does take a few days to advise the client, send all the relevant paperwork out, get it completed (you'll know how difficult this can be !), returned, and then forwarded to the lender in time to meet a cut off deadline.

Can you imagine how livid a company the size of L & C would be if they've advised quite a few customers on a particular mortgage only to have the rug pulled at the last minute ? I get frustrated enough with maybe only 1 or 2 cases !

In all honesty, I think the L & C broker was not trying to be fly, just stating a realistic deadline by which L & C could process the application at there end, in order to meet a Woolwich deadline.

Can you imagine the chaos if L & C received a large number of cases on Thursday or Friday which either had to be posted (to reach Woolwich by 5pm) or entered on MAX (perish the thought !). I think it's called managing customer expectations, as if they didn't at least warn customers to get applications in, that would have been wrong and you'd get customers complaining about not getting any warning. Damned if they do and damned if they don't !

regards

payless

so should have been clear that as Woolwich were likely to withdraw rate, ( as from 30/11) the lastest L&C would take new business was 2pm on 27/11

dunstonh

Depends on the quality of your broker consultant. I often get told stuff before the actual announcement comes from emails, phone calls or visits. I see it as a measure of a good consultant to give you advance notice.

I feel sorry for those who are members of networks/clubs who are not allowed to have broker consultants as they miss out.

Dan_Collins_2

Leon, thanks but I know how these companies work and I dont doubt this is the case but why not tell the truth? If they were that big for the woolwich then why not give them more time?

Our BDM left the Woolwich a few months back and we are still to meet the new one, if he/she has been employed so we have been left in the dark a little. Most of our BDM's give us a heads up. Halifax, NR, Alliance and Leicester, GMAC and UCB are the best at it. Other lenders dont have to be as they give a longer warning period. We get emails all day long telling us this that the other from the lender and then you get the BDM emailing you and some have started using text messages.

Dunstonh I dont know of a network or club that does not allow you to have a BDM!

dunstonh

Dunstonh I dont know of a network or club that does not allow you to have a BDM!

Personal Touch is the one I am aware of. Rubbish network in my opinion. So much so that I have a couple of IFAs that are with them who pass business to me because they cannot do it because of PTs rules. I also act as consultant to their firm for investment business and you wouldnt believe some of the rubbish their compliance dept comes out with as requirements.