Interest Rates Today

[chimneys]

The IFA's wont want you to know this, but HSBC still has a decent tracker at 1.64% over BoE base rate FOR LIFETIME OF MORTGAGE. £799 fee (and none to IFA as HSBC dont deal with IFAs!), unlimited overpayments and portable. The only caveat is max loan to value is 60%. Up until last week it was 0.99% over base.

Dont really mean to have a go at IFAs as we've all got to make a living but dual pricing IFAs/public is definitely a big issue now(I will let the IFAs explain). My "former" IFA had got me a half decent tracker but nowhere near as good as this HSBC one (higher tracker rate, tied in for 2 years and a collar we are already past) and wanted £200 for the privilege.

Be warned IFAs are not whole of market so do your own research as well!!

 

[Uncle Spielberg]

A couple of points. You are right about this deal. It is now at 3.64% and only available direct. Good luck !. The thing is the market leading rate means they will cherry pick the ones they want. Also you will have to do it all yourself and take time out. Good luck trying to get an appointment to see an advisor. Expect a hard sell on insurance related products such as life cover, buildings/contents, mortgage payment protection and expect numerous calls over the months and years.

Please also don't insinuate the IFA as you call them, Mortgage Broker gets some of the lenders arrangement fee as they get nothing, the lender gets all the arrangement fee. Most lenders pay brokers a procuration fee for finding an introducing the client to them. The clients do not pay this and the vast majority of lenders offer the same rates direct or through brokers although some have tried to shaft the broker out of the market by dual pricing most are not doing that now.

HSBC have never accepted business through brokers and have always only accepted direct business. I also expect their % of application to completions will be low and any adverse credit issues ( and I mean 1 late payment on a credit card ) would not help.

Brokers have an important role to play but they could be no broker market left in a year and clients will have the choice of dealing themselves direct with 4 or 5 super lenders and that will be the market. Diversity, choice and competition is what the FSA are meant to want but the road we are going down there will be no mortgage brokers left and half a dozen big lenders controlling the market and create a cartel and price fixing which is not going to be in clients interests.

The IFA's wont want you to know this, but HSBC still has a decent tracker at 1.64% over BoE base rate FOR LIFETIME OF MORTGAGE. £799 fee (and none to IFA as HSBC dont deal with IFAs!), unlimited overpayments and portable. The only caveat is max loan to value is 60%. Up until last week it was 0.99% over base.

Dont really mean to have a go at IFAs as we've all got to make a living but dual pricing IFAs/public is definitely a big issue now(I will let the IFAs explain). My "former" IFA had got me a half decent tracker but nowhere near as good as this HSBC one (higher tracker rate, tied in for 2 years and a collar we are already past) and wanted £200 for the privilege.

Be warned IFAs are not whole of market so do your own research as well!!

 

[Herr Tubthumper]

Halifax pass on the full 1% cut to it's Tracker customers.

BBC NEWS | Business | Halifax pledge on tracker deals

...but that is the deal with trackers isnt it? Why wouldnt they?

They're not passing the cut on for other loan types.

 

[Bozza]

...but that is the deal with trackers isnt it? Why wouldnt they?

Because of the 'collar', ie the minimum rate a tracker can fall to. The news here is that Halifax seem to be saying that the collar will not apply, when they'd be perfectly entitled to impose it.

The BBC might explain it better than me...

The bank has a clause in its mortgage agreements which says it can chose to stop cutting its interest rates once the bank rate falls below 3%.

But the Halifax now says it will not in fact do this.

 

[aftershavedave]

Because of the 'collar', ie the minimum rate a tracker can fall to. The news here is that Halifax seem to be saying that the collar will not apply, when they'd be perfectly entitled to impose it.

The BBC might explain it better than me...

others, Barclays/Woolwich included, do not have this collar and have also today updated their base rate to mirror the 1% cut

Barclays Bank Base Rate - Interest rates - Barclays

 

[chimneys]

US-some valid points made, particularly about the lender cartels! And can I also say I have seen some wise financial advice given by you on NSC over the years.

Still, you will appreciate that I was a little peeved when I thought I was paying to receive the best advice as to the best mortgage product in the market, only to find out completely by chance through a chat in the pub that there was a much better product for me out there.

Other points:

1. Application process was one 10 minute phone call and then checking the form sent through (as opposed to the reams of IFA (sorry if that's not the up to date name for the industry) firm's paperwork expected to be filled out by me). No appointments to see advisers, hard sell on anything, all very professional (so far!!). In fact I have been amazed as I'm self employed and was expecting a hard time.
2. Arrangement fees-I didnt mention the IFA gets any.

Bottom line is I dont mind paying for good advice, but when the advice given does not take account of whole market, and specifically excludes the best mortgage product available in my circumstances, then frankly thats a poor show. Perhaps the way to deal with this issue if for IFAs to be very explicit as to what they are able to recommend, and not fudge their coverage of the market. (Caveat-maybe most do and I was just unlucky).

 

[Herr Tubthumper]

Because of the 'collar', ie the minimum rate a tracker can fall to. The news here is that Halifax seem to be saying that the collar will not apply, when they'd be perfectly entitled to impose it.

The BBC might explain it better than me...

Fair enough.

I do recall the Halifax telling their customers/carpet baggers that floating the company was better for them. Clearly.

 

[Uncle Spielberg]

Here it is chimneys. The broker should tell you there is a better deal you are right but if he researched all the market after doing a factfind and established this deal was best he would be entitled to expect a fee for his time for saying go to HSBC. He is not an employee of HSBC. It would be like someone going for a Hoover and the bloke has it at £ 150 but knows the guy down the street has it for £ 140. He should then tell the customer to go to the other bloke. I tell my clients about this deal as if you do not and the find out themselves you lose face. At the moment it is really just HSBC and First Direct who are the biggish players who accept introduced business only and the dual pricing is now not happening with the other lenders to my knowledge. In short your guy should have told you and charged you £ 200 for his time. He has lost face and lost you as a client for the future.

The IFA's wont want you to know this, but HSBC still has a decent tracker at 1.64% over BoE base rate FOR LIFETIME OF MORTGAGE. ****£799 fee (and none to IFA as HSBC dont deal with IFAs!)****, unlimited overpayments and portable. The only caveat is max loan to value is 60%. Up until last week it was 0.99% over base.

Dont really mean to have a go at IFAs as we've all got to make a living but dual pricing IFAs/public is definitely a big issue now(I will let the IFAs explain). My "former" IFA had got me a half decent tracker but nowhere near as good as this HSBC one (higher tracker rate, tied in for 2 years and a collar we are already past) and wanted £200 for the privilege.

Be warned IFAs are not whole of market so do your own research as well!!

 

[Herr Tubthumper]

US-some valid points made, particularly about the lender cartels! And can I also say I have seen some wise financial advice given by you on NSC over the years.

Still, you will appreciate that I was a little peeved when I thought I was paying to receive the best advice as to the best mortgage product in the market, only to find out completely by chance through a chat in the pub that there was a much better product for me out there.

Other points:

1. Application process was one 10 minute phone call and then checking the form sent through (as opposed to the reams of IFA (sorry if that's not the up to date name for the industry) firm's paperwork expected to be filled out by me). No appointments to see advisers, hard sell on anything, all very professional (so far!!). In fact I have been amazed as I'm self employed and was expecting a hard time.
2. Arrangement fees-I didnt mention the IFA gets any.

Bottom line is I dont mind paying for good advice, but when the advice given does not take account of whole market, and specifically excludes the best mortgage product available in my circumstances, then frankly thats a poor show. Perhaps the way to deal with this issue if for IFAs to be very explicit as to what they are able to recommend, and not fudge their coverage of the market. (Caveat-maybe most do and I was just unlucky).

Good and bad in all walks of life. If you find a good egg keep it and recommend it.

 

[chimneys]

Well summed up US. I shall have to take your contact details for next time!!

 

[Pretty pink fairy]

I'm not sure I'd trust a mortgage advisor who calculated 2.0% - 0.46% as being 1.56%.

what a

 

[Pretty pink fairy]

easy come easy go, the poor old finacial people have really come back to earth with a bump, my heart bleeds

 

[Uncle Spielberg]

A slip of the fingers, I will pass on your kind thoughts to Bones for you. Hitler's henchmen is on the discovery channel later.

 

[Simster]

Here it is chimneys. The broker should tell you there is a better deal you are right but if he researched all the market after doing a factfind and established this deal was best he would be entitled to expect a fee for his time for saying go to HSBC. He is not an employee of HSBC. It would be like someone going for a Hoover and the bloke has it at £ 150 but knows the guy down the street has it for £ 140. He should then tell the customer to go to the other bloke. I tell my clients about this deal as if you do not and the find out themselves you lose face. At the moment it is really just HSBC and First Direct who are the biggish players who accept introduced business only and the dual pricing is now not happening with the other lenders to my knowledge. In short your guy should have told you and charged you £ 200 for his time. He has lost face and lost you as a client for the future.

Wouldn't you be within your rights to start off your meeting explaining that you are only able to offer advice on products that you can arrange? That way, although you're letting the punter do his own leg work, it's better than him receiving a £200 bill he wasn't expecting...

 

[Uncle Spielberg]

Wouldn't you be within your rights to start off your meeting explaining that you are only able to offer advice on products that you can arrange? That way, although you're letting the punter do his own leg work, it's better than him receiving a £200 bill he wasn't expecting...

It depends on how much advise the client wants/needs. I agree if a client come in and says " I want the lowest tracker rate up to 60% loan to value which allows unlimited over payments and has arrangement fees of under £ 1000 and is flexible and I do not mind the risk of payments going up or need the security of fixing my payments and know my income and credit situation and property will meet their criteria " I would agree , jusy say go to HSBC. Its usually a little more involved than that and could be a 1 hour meeting with a full factfind.

 

[Herr Tubthumper]

It depends on how much advise the client wants/needs. I agree if a client come in and says " I want the lowest tracker rate up to 60% loan to value which allows unlimited over payments and has arrangement fees of under £ 1000 and is flexible and I do not mind the risk of payments going up or need the security of fixing my payments and know my income and credit situation and property will meet their criteria " I would agree , jusy say go to HSBC. Its usually a little more involved than that and could be a 1 hour meeting with a full factfind.

Do you only do mortgages?

 

[Uncle Spielberg]

Mortgages / Re Mortgages - residential/buy to let
Secured Loans
Unsecured Loans
Life Cover
Critical Illness Cover
Income Protection
Buildings & Contents Insurance
Mortgage Payment Protection

Know good people who can do

Commercial Mortgages
Savings & Investments
Pensions

 

[Herr Tubthumper]

Mortgages / Re Mortgages - residential/buy to let
Secured Loans
Unsecured Loans
Life Cover
Critical Illness Cover
Income Protection
Buildings & Contents Insurance
Mortgage Payment Protection

Know good people who can do

Commercial Mortgages
Savings & Investments
Pensions

Just PMed you

 

[Pretty pink fairy]

A slip of the fingers, I will pass on your kind thoughts to Bones for you. Hitler's henchmen is on the discovery channel later.

your to easyyyyyyyyyyyyyyy US