Am i locked in with this Broker? might need to change. need advice

Jimster_s_2

i have posted about my ohter buy to let but ill explain my situation.

I have a residential house. i bought it in a bad state and i have done it up and it is worth more than i paid a few months ago.

i found another property which also needs a lot of work doing and the sale was about to close. i had 2 days to get my offer in and needed proof of mortgage.

a friend recomended a broker and i used him and he is meant to be sorting out my 2 mortgages.

my offer on the new house has been accepted.

i need to remortgage my old house as a buy to let with 80% of the value. if i take 80% it allows me enough for the deposit on the new one.

to make matters worse my partner who im buying the new one with got us refused because of her credit history. it should be perfect and so we got a statement from equifax and it showed her half sister who she hasnt seen for years had got some things in her name. we got a police ref number and proof it wasnt her and sent it all off to the mortgage company and they took this into consideration and allowed us to have it

we are about to receive the papers from Inteligent finance and we need to fill them in and send them back.

i used this broker becasue he has come highly spoken of by a freind and he did do well to get us the mortgage becasue of my partners situation.

BUT

he sort of said when we took it out that he doesnt charge fees if we take out life insurance. now i got a quote last week but i cant remember what it is but it was just over £20 a month. i have since done a quote online and its £5 for me.

the mortgage with IF is as follows:

120000, 90% mortgage (now says we can get 95% instead)
no tie in fees or early settlement fees.
5.29%
476.10 pm interest only
admin fee of £175
survey of £300 (£350 for home buyers)
arrangement of £499

we intend to sell this house within 6 months and make a profit.


the BTL mortgage he quoted me for is
First active
64000
6.19 fixed for 2 years (dont actually need a fixed one though)
276 interest only per month
survey £135
arrangement £399


now i think i can get better for the BTL by looking else where and i havent agreed anything on that. i have asked for other quotes but not really got anywhere. i will have to see monday what a broker from this website can say and also try first active what ive been told to try from this website

the thing is if i take the IF one i will have to take out expensive life insurance. could i cancel this after a while if i dont want it or if i sell the house?

could i also go elsewhere? my girlfriend has a situation on her hands that might cause us problems again. i need to have the valuation done within a week or ill loose the house.

looks to me like i will have to stay with this one for the new mortgage but go else where for the BTL. also looks like ill have to take out life insurance too.


i was quite happy with what i was getting till a few days ago when i started reading this site. if i had more time i would have done things differently but i only had a day or 2 so had to go with what i had on offer.

after speaking to a broker listed on this site who doesnt charge fees they think i can easily get a better btl one. i got some figures on friday afternoon and they were fee free and also £3 a month less but locked in for 3 years. i have asked for a quote with no tie ins but have to wait till monday.

i might have also been better off getting a no fee mortgage on my new one becasue i am going to be selling it within about 6 months so the slightly higher cost per month will out weigh the fees

anyway just though id share my situation and maybe ask for a little advice on where i stand or what might be a good option for me to do.

dunstonh

he sort of said when we took it out that he doesnt charge fees if we take out life insurance. now i got a quote last week but i cant remember what it is but it was just over £20 a month. i have since done a quote online and its £5 for me.

Almost certainly you are not comparing like for like. A difference of that size using an independent mortgage broker suggests he has included CI cover and you havent. If he isnt independent on the protection side (ie. a bank) then a difference of that size is possible.

I'm not sure what you are after. One broker has recommended a mortgage with no tie in, which is what you wanted. However, another broker has recommended a mortgage which is cheaper but with a tie in (which is not surprising).

If you cancel the insurances after the mortgage has been completed, its possible that the terms of business document allows the broker to reclaim the difference in the fee and the commission received. You should refer to the terms of business/IDD/Menu documents for confirmation on that.

If you dont want CI insurance included, then tell the broker and get him to quote on same terms as you have online. Also, make sure the online quote is correct for your occupation. Many quote portals use class 1 occupations to quote and not many find themselves in class 1. (Scot Provident as an example, often appear near top or top but class 1 is basically clerical only. Even retail finds itself in class 2).