FYI before you mortgage DIY

 

 

Cutting corners on professional fees can often lead to a much greater cost, rather than a saving. 

 

Here is a real life example that happened this week ….. 

 

One of my landlord Clients accessed their mortgage lender's app on their 'phone, and I was asked if the suggested mortgage switch product being offered was a good deal or not. 

 

Yes, but ..... The 'phone app only offered 6 ‘direct to consumer’ options. 

 

As a professional Broker, we are also able to offer a choice of a further two options from the same lender. 

 

These two other products are a much lower overall cost, compared to the DIY range. 

 

Yes, some lenders do still 'dual price' and so without knowing your full range of options, you may well be costing yourself a lot more than you need to pay. 

 

Using this actual real life example, my Client showed me a 4.41% 5 year fixed rate deal, totalling £41,084 payments over 5 years. 

 

The Broker portal options included a 4.26% 5 year fixed rate deal and this option totals £39,898.80 over 5 years. 

 

A difference, for the cost of a 'phone call, is a gross saving of £1,185.60 

 

nb .. There are other options being offered, including fee free deals, and also with much higher fees being offered too. However, the broker product above is calculated as the best option based on all considered circumstances at this time. 

 

As always, the worst case scenario is to do nothing and let the mortgage roll over on to a substantially higher standard variable rate (SVR). 

 

We are a fee charging Firm, however, our standard product transfer mortgage advice fee is no-where near the £1,185.60 saved above, so even after we have been paid for providing you with professional advice and access to our deals, and then actioning and processing it for you, and carrying out the time consuming monitoring (for us) right up until the deal switches over (reducing rates again when they are then made available on the market), you are the winner! 

 

How big can your savings be when you don’t DIY? For our portfolio Clients, for whom we are very regularly remortgaging or product-switching 10, 20, 50+ mortgages at any one time, simply multiply the saving across how many mortgages in your portfolio and you can see an even greater benefit for calling me and just giving me your (account) number. Using the above real life case as an example, what if there were 5 mortgages to switch? That's a saving of £1,185.60 x 5 = £5,928. 

 

And all you did was to give us the initial details and we have done all of the rest for you. 

 

Try us! We will check all of your options, including those provided to you by your current lender and we’ll also check across the market, and you can then see just how much you can save, versus the deals that you will be sold direct. 

 

We are able to provide you with access to the widest market including all direct to consumer deals, and many more that are only available via Brokers. 

 

For a remortgage or product switch review, call us anytime.