Am I getting the right advise from my financial adviser?

Chernobgg · 29 July 2020 at 11:05AM

Background - My goal is to buy my first property and save for a deposit for a 90% LTV. A friend recommended him. He has the has CeMAP qualification. I first met over one year ago and his advise was to save, save, save. Since then I have reached my desposit target and I am now saving for mortgage fees.

I asked him whether now is the right time to buy:

In terms of timing; probably not if I’m honest, it’s difficult to really believe that the virus won’t create a recession for those who’s work is impacted, at the moment we seem to have a bubble where next time buyers are looking at the reduction in stamp duty and believing that this makes a good opportunity to move and indeed for some that’s probably true, but surely in the longer term there will be some property reductions at the lower end of the market. From your perspective this will always then be offset by the costs of staying in rented and whether that’s ‘wasted money’.

I asked him about his fees:

I don’t tend to charge for mortgage advice because we are paid by the lenders and also any insurance companies that we acquire any protection elements through, from my perspective my role is all about building longer term relationships, some of my best advocates are clients who have been with me for 20+ years.

What are your thoughts on his responses?

Bonniepurple · 29 July 2020 at 11:20AM

There is never a “right time” to buy a house. 90% mortgages are hard to get right now, otoh if you have a steady job and are prepared to stay put for a few years if you end up in negative equity, then go for it. If you don’t feel comfortable with this advisor, try another.

[Deleted User] · 29 July 2020 at 11:20AM

Why do you want to buy a house just now? No one else's opinion is really that important

pearsforlife · 29 July 2020 at 11:25AM

It’s as good a time as any to buy a house. People bang on about house price crashes etc but it will never happen, as long as their are people still wanting to live in this desirable country then the demand will continue to float house prices. When help to buy ends in its current form less developments will occur, especially for higher value homes which will steady the upper market but will also mean that demand will increase..