Nationwide or Lloyd TSB,pls help.

mrsbudget

Hi,folks,

Just came back from an independent advisor who give me 2 best choices for a remortgage. Well, he said this would be the best ones for me. Any other suggestions from you guys will be really appreciated.

Anyway, I have a £78,000 mortgage at the moment, need at least £11000 for my roof so, the advisor looked for a remortgage deal for £90,000 for 16 yrs. here are they.

Option 1 -LloydTSB 3yr fixed rate - 5.99%

- no legal fees
- £1495 Fee added to Mortgage
- tied in for 3 yrs
- Monthly payment = £753.95

Option 2 - Nationwide - 2yrs Tracker - 6.25%

- no legal fees, no survey fees
-£599 fee added
- 2 yrs tied in
- MOnthly payment = £759.96

The advisor said it would be better to gamble with option 2 although it is a variable rate because of there is a chance that the rate will go down this year and although it may come up the following year, still will not be too much compare to the monthly payment £759.96.

So what do you think? It is good to see an advisor but still better to know what you guys think about this? Thanks very much in advance...

lyn

mr_mortgage

Any reason why the HSBC term tracker of 5.63% (i.e. REPO rate + 0.63%) wouldn't be better? It has a £999 booking fee. Or their 5.89% or 5.99% ones with no fees (lower rate needs a 'plus' current account with them.

The 5.63% would be about £710 a month, if my brain calculator is working properly today.

payless

Thats the issue - most advisers are telling clients only about commission paying products ... whereas there are loads better ( including from the 2 lenders mentioned!) elesewhere.

If you don't feel comfortable in sourcing the deals yoursel you should employ an adviser who will include ALL deals ... ( will likely charge a fee from their time- but saving can be a faiur amount)

mrsbudget

Yes, Mr Mortgage, I did ask about the HSBC but then he said, he hasnt got access to HSBC as a broker, I need to do it myself. Another thing he said, HSBC at the moment is a bit too slow in processing paper works. At the moment, I prefer to have things processed in 4 weeks time.

Hi, Payless, who are these adviser that you mentioned? How can get in touch with them? Are they the ones in Moneysupermarket.com by any chance?

Thanks for you time.

Mr_helpful

mrsbudget wrote: »

Yes, Mr Mortgage, I did ask about the HSBC but then he said, he hasnt got access to HSBC as a broker, I need to do it myself. Another thing he said, HSBC at the moment is a bit too slow in processing paper works. At the moment, I prefer to have things processed in 4 weeks time.

One wonders how he knows when he doesnt have access to them:rolleyes:

Hi, Payless, who are these adviser that you mentioned? How can get in touch with them? Are they the ones in Moneysupermarket.com by any chance?

Thanks for you time.

A true independent broker should help but as payless says will probably charge a fee. Some fees from brokers do wipe out the potential benefits though. Money supermarket does not have all the deals either. Unfortunately the FSA has made such a pigs ear of regulation your understanding of the word independent is likely to be very different from the industry's

mr_mortgage

mrsbudget wrote: »

Yes, Mr Mortgage, I did ask about the HSBC but then he said, he hasnt got access to HSBC as a broker, I need to do it myself. Another thing he said, HSBC at the moment is a bit too slow in processing paper works. At the moment, I prefer to have things processed in 4 weeks time.

HSBC are busy, but 4 weeks seems reasonable as long as you have everything required up-front (payslips, bank statements etc. etc.).

Either way, if your broker doesn't have access to HSBC products - what else is he not telling you?

payless

mrsbudget wrote: »

Hi, Payless, who are these adviser that you mentioned? How can get in touch with them? Are they the ones in Moneysupermarket.com by any chance?

Thanks for you time.

Its down to each individual adviser as to what (extra) services they offer... HOWEVER the site you mention would not be my starting point.

Unfortunately the regulators have not (IMHO) really resolved the issue , so no name / list people willing to do the extra mile.

( fairly new issue - before March , direct only deals were not usually any better- in fact broker exclusives were generally better)

Talk to advisers and ask the question.. " Will you advise me on all deals even the direct only products" - then ask for proof . Its hard work to get it right , and not very profitable ( initially) for the broker, so you are more likely to find the smaller guy/firms willing to do it as a way of building a relationship .

mrsbudget

I am so "zero" knowledge when it comes to mortgages..so,Mr Mortgage, what do you mean by " what else is he not telling me??? ..that he does not have any commission on HSBC?

Payless, who are the smaller guys??? actually the one I spoke to this morning was a small firm only. He did helped me with getting my mortgage 5 yrs ago and I just came back to him because, I just dont know and dont understand where to start.

Actually, another difficult factor is that, I only work part time and has a gross of £9000 only and my husband's is around £16000 plus yearly variable bonus from his work. So, that's another thing...ohhhh,,,If only we dont need our roof done, i will never deal with mortgage again.

payless

I'm not going to name names , but the sorts you find "recommended" by financial websites/ newpaper best buys are generally large nationals and I guess are not going down this route.

That does not mean that all small brokers will offer this service though see my comments on
http://forums.moneysavingexpert.com/showthread.html?t=880695

mr_mortgage

mrsbudget wrote: »

I am so "zero" knowledge when it comes to mortgages..so,Mr Mortgage, what do you mean by " what else is he not telling me??? ..that he does not have any commission on HSBC?

I mean what other lenders is he not including in his comparison?

And yes, he does not have any commission on HSBC otherwise he'd have included them.

Bottom line - you need to get the best deal for you, not for your broker.

payless

Of course what he's doing is not against the rules ( some would say the rules are wrong!), and even a broker who is not offering "all deals" can add value in knowing criteria/ doing paperwork... however remember there's no such thing as a free lunch.