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Original poster

Confused about mortgage rates.

31 replies

imaeasteregg · 18/04/2022 10:48

Hello,
FTB here & after speaking to L&C have a rough idea of what we can borrow & deals available. However looking at money supermarket comparison calculators the % is quite a bit lower. I assumed brokers had access to the best deals & that L&C were competitive. Should I try & do it myself?

OP posts:
maddy68 · 18/04/2022 10:50

Make sure you use an Independent advisor. Some are brokers who only advise on their companies own products whichay not be the best. My oh is an IFA drop me a pm and maybe he can help you?

Original poster
imaeasteregg · 18/04/2022 10:57

this is a dumb question but how do I know they are independent?

thank you

OP posts:
Asdf12345 · 18/04/2022 11:07

If someone else is paying them for their time odds are they aren’t independent.

He who pays the piper calls the tune.

caringcarer · 18/04/2022 11:13

I paid an independent broker £500 to get me better deal that was only available through a broker, not to public directly.

Cocomarine · 18/04/2022 11:38

Are you confident that you’re comparing like with like? How much do you know about mortgages?

For example, if you told L&C that you wanted something with a product fee, you’ll likely get higher rates coming back.

On independence - on a basic level, they’ll shout about it if they are!

Original poster
imaeasteregg · 18/04/2022 11:45

I'm not confident at all.

It's just because the money supermarket returned 11 deals all with lower rates. I don't want to pay more. Is it worth me phoning the brokers connected with money supermarket

OP posts:
RedHelenB · 18/04/2022 11:49

Yes. Get the cheapest deal you can . Brokers are good for those with poor credit history or self employed for eg, where its relatively straightforward a comparison sire might well be better

BeinBedEarly · 18/04/2022 11:53

Are you comparing like for like with LTV? Someone who is an FTB with a 10% deposit will pay a lot more interest rate than someone moving house getting 30/70 LTV.

Original poster
imaeasteregg · 18/04/2022 12:13

yes same LTV

OP posts:
Original poster
imaeasteregg · 18/04/2022 12:13

25%

OP posts:
AwkwardPaws27 · 18/04/2022 12:15

@imaeasteregg

I'm not confident at all.

It's just because the money supermarket returned 11 deals all with lower rates. I don't want to pay more. Is it worth me phoning the brokers connected with money supermarket

Why not ask L&C? When we see our broker I usually do a quick search myself and if I found anything lower I'd just ask him.
Original poster
imaeasteregg · 18/04/2022 12:16

Yes I can do that

OP posts:
CCSS15 · 18/04/2022 15:01

Are you comparing like for like eg 5 year fixed against other 5 year fixes? If you are comparing fixed against variable then yes there will be a difference

L&C are independent but there may be some exclusives they cannot access - your best option is to ask them

Brokers will also be aware of tricky underwriting criteria and will compare things such as fees - its not a straight forward this is the cheapest therefore I'm going for it

LaWench · 18/04/2022 15:02

If your finances are straight forward then go direct, you don't need a broker.

Original poster
imaeasteregg · 18/04/2022 15:04

yes 5 yr fixes against other 5 yr fixes. That's all i'm interested in as everything is so unknown at the mo

OP posts:
MyDcAreMarvel · 18/04/2022 15:06

L and C are independent, you won’t be comparing like with like and money supermarket etc won’t be the final rate for the majority.

Original poster
imaeasteregg · 18/04/2022 15:08

ok good to know

OP posts:
anibendod · 18/04/2022 17:08

I've used L&C twice.

on the 1st occasion we were FTBs and they managed to secure us a far better rate than we could find on the open market. They ran us through several similar products, explaining the pros and cons of each. They were more than willing to run various scenarios for us as we sought to figure out what type of mortgage we wanted.

We went back to them when we were ready to remortgage, and they were completely upfront about the fact that they could not match or beat the best deal we had found ourselves. There was no pressure or hard sell to take another mortgage through them whatsoever.

I'd have no qualms in recommending them or using them again should we ever need another mortgage. Don't be afraid to ask questions of them. This is all very new to you as a FTB, they know this stuff inside out and back to front. Whilst they cannot give you financial advice along the lines of "you should take this product", they can talk you through pros and cons of the products they identify as matching your needs based on the info you have given them. If you think you have found a better like for like deal on the open market (e.g. through moneysupermarket), tell your adviser at L&C and ask if they can beat it

LittleBearPad · 18/04/2022 17:11

L&C will be recommending offers you are likely to be accepted for. The Moneysupermarket rates may well have very strict criteria that you won’t meet but which make the offer look good in the league tables.

Cocomarine · 18/04/2022 17:13

@imaeasteregg

yes 5 yr fixes against other 5 yr fixes. That's all i'm interested in as everything is so unknown at the mo
And the product fees?
Original poster
imaeasteregg · 18/04/2022 17:17

@anibendod thank you

OP posts:
Original poster
imaeasteregg · 18/04/2022 17:18

@LittleBearPad I didn't think of that. What would be reasons for different criteria (I had put in we are FTBs & our deposit)?

OP posts:
Original poster
imaeasteregg · 18/04/2022 17:20

@Cocomarine varies, am I correct in thinking you add that on & work out if the fee actually means it's more expensive?

OP posts:
Gladioli23 · 18/04/2022 17:24

With mine I went through the market, got a AIP for one rate then went to a broker with an agreement I was only paying their fee if they saved me more than their fee - which they did and which I paid happily.

Original poster
imaeasteregg · 18/04/2022 17:31

Thanks for all the advice by the way, I don't really have anyone to talk to about in RL so it's very helpful.

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