Question for advisers re rates

onetimeatponycamp

I've spoken to a lovely, helpful local broker and they've found me a rate with a lender. I've also spoken to Habito, and they have come back with a rate with the same lender, same fees etc. but that is 0.1% less. Is it because they are such a big broker that they are able to get this cheaper rate? I'd rather use the local broker but the different isn't insignificant for me.

[Deleted User]

Is it Natwest?  They have certain exclusives that brokers get and there is 0.1% difference between the broker rate and the public rate

Maybe the local one has picked the public rate that has cashback instead of a free valuation?

onetimeatponycamp

No, Halifax. No cashback. The valuation fee is the same. The Habito one has a Solicitor's Charge which the other doesn't, the local broker has a fee which the developer would pay.

[Deleted User]

Halifax do exclusives to certain companies sometimes.  Usually the big ones.   Perhaps ask the local broker why they didn't recommend it

SonOf

Is it because they are such a big broker that they are able to get this cheaper rate?
They are not such a big broker when compared to some of the mortgage networks/clubs that your local broker/advisers will belong to.   From memory, I believe the two biggest mortgage broker networks account for over half of all mortgages.

 Every network/club/broker will have some deals exclusive to them or limited to certain clubs/networks/brokers.  

kingstreet

onetimeatponycamp said:

No, Halifax. No cashback. The valuation fee is the same. The Habito one has a Solicitor's Charge which the other doesn't, the local broker has a fee which the developer would pay.

The lender legal expenses is simply there as part of the APRC calculation. How much you pay in legal fees is entirely determined by your chosen conveyancer and nothing on the illustration will affect this.