Going directly vs using mortgage advisor

g000444555 Posts: 43 Forumite
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edited 9 March 2022 at 9:36PM in Loans
I am a first-time home buyer and my current 2-year fixed rate deal ends at the end of May 2022.

My current loan is with Halifax and I have contacted Halifax directly to provide an illustration.

I also contacted 3 independent mortgage advising services (brokers).

Halifax gives me 2.22% for a 5 year fixed rate, which I find terrible. Only advantage with going directly with Halifax is that there will be no product fee. While going through the mortgage advisor, usually imposes a fee of about £1000.
The other three mortgage advisors provide more competitive deals, even when suggesting Halifax as a lender.
It so happens that two of them also suggest Halifax 5 year fixed rate, but both give a different rate (1.73% and 1.59%).
I understand that given the current situation rates have changed rapidly, but the difference still seems quite substantial.

Inevitably, I have a few questions:

- How can a third-party independent mortgage advisor provide better rate for Halifax than going directly with Halifax? Would this make sense or would there be a catch to look for?
- How can two mortgage advisors provide different rates for the same 5 year fixed rate and the same lender? Is there a typical catch to look for? Or should I simply select the one with the better rate?
- 2 year fixed rates seem to have been increased considerably after the invasion of Ukraine but 5 year fixed rates not so much. Should I go for a 2 years fixed rate or 5 years fixed rate? Assuming I am not going to sell or do anything related in the next 5+ years. What would make the most sense from financial stand point?


  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    edited 9 March 2022 at 9:05PM
    Some rates are only available via brokers, some only direct. And sone similar deals gave varying fees 

    Whether to fix or not depends on your attitudes to risk and to certainty. No one knows which best financially as no one know what will happen in the next few years.
  • MEM62
    MEM62 Posts: 4,748 Forumite
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    It is often the case that a broker will have access to deals that are no available by going direct to a lender.  At the moment I think that there is sufficient uncertainty that I would fix for 5 years.  (We did last April)  
  • penners324
    penners324 Posts: 2,724 Forumite
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    Halifax have offered you their retention rates, they have better rates for new customers.

    Have you taken into account the costs of remortgaging? Solicitors fees, valuation fees, etc?

    Better to post this on the Mortgages board
  • g000444555
    g000444555 Posts: 43 Forumite
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    Hi penners324. Valuation cost is usually covered by the package for free. I do not remember seeing anything about solicitors fees. I guess the mortgage advisor would take those into account when suggesting a package.

    And thank you for the suggestion to post on the Mortgages board. I did not realise it existed.
  • superbigal
    superbigal Posts: 601 Forumite
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    I am a little suprised someone think 2.22% for 5 years with no hassle or costs that you can organise in 10 minutes is a "terrible" deal.
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