Direct Mortgages in the era of Umbrellas

[northernladuk]

Much claimed on here, but every whizz bang contractor specialist deal I've seen has always been beaten by going direct.

"Ah but we have exclusive rates" they'll say - and they're right. And their finders fees are exclusive too, which usually negate them if they haven't been beaten already by going direct.

I'd also say that's wrong. I was very pleased with my product from Halifax which beat most of the high street ones. Was more than happy to pay for them to find it and deal with it.

Instead of putting people off get them to try it and do their own sums rather than putting out arguable untruths that may mean people miss the best deals.

[eek]

The only answer is "It depends".

Speak to brokers and speak direct and then work out what is the best deal you are likely to get.

[northernladuk]

Much claimed on here, but every whizz bang contractor specialist deal I've seen has always been beaten by going direct.

"Ah but we have exclusive rates" they'll say - and they're right. And their finders fees are exclusive too, which usually negate them if they haven't been beaten already by going direct.

Remember also only a handful of lenders will deal with contractors. I've no idea how that works with people with contracting/brolly mix but I can't imagine it helps. Most of the normal deals could be unavailable to us and we have to go with specialist products. These aren't on comparison sites and the criteria for each is different, contract breaks, length of contract etc. It's OK say go direct but you've got to put the legwork in trying to find which lenders off a solution that suits your situation and when you've got that list you can start looking at comparisons. That's a lot of work. A broker can do this where it's arguable you can't.

[edison]

Much claimed on here, but every whizz bang contractor specialist deal I've seen has always been beaten by going direct.

"Ah but we have exclusive rates" they'll say - and they're right. And their finders fees are exclusive too, which usually negate them if they haven't been beaten already by going direct.

I've also had the complete opposite experience to you. In fact, even when I was a permie, a broker worked out better than going direct on two occasions when I came to a new purchase or remortgage.

[northernladuk]

I've also had the complete opposite experience to you. In fact, even when I was a permie, a broker worked out better than going direct on two occasions when I came to a new purchase or remortgage.

Indeed. Very important for BTL's as well. The best BTL for years has been Birmingham Midshires and they ONLY deal with brokers. Could be the same with normal mortgages. You'll only find out if you go speak to a good broker.

It's funny but I wrote brokers of any kind off as soon as the internet took off. Waste of time, extra cog, more expense etc... but in recent years I've gone back to them just for a sniff and I've been pleasantly surprised. I'd always use a mortgage broker without question, I've started using a local travel agents for our holidays (adult only but trying to avoid naturist/risque types) and we used one recently for car insurance (young driver). Was pleasantly surprised to find the mortgages and the car insurance was cheaper than I could find. The holiday one I dunno about prices but took the legwork and worry out of the hols so booked a few through them.

It does appear they've come along way rather than being an added cost so am happy to try them again now. I think this edict of booking direct is cheaper isn't a given nowadays. Either that or I've just got lazy/posh and happy for someone else to do the work.

[courtg9000]

Having being involved on the fringes of property finance for the self-employed - not specifically contractors I can say that the standard lenders treat the self-employed as high risk. God forbid you walk into a high street branch wanting finance for say a restaurant business with owners residential accomodation over! Most bank branches and front line contact centres are not geared up for the self-employed and enquiries such as this. When I was a proper contractor, I used a specialist contractor outfit. I got a good deal. On my first mortgage they were about 30% cheaper than a quote from my bank! When I was no longer a "proper contractor I went to a different specialist each time knowing that going direct to a mainstream lender was a waste of time. There was no way I had direct access to the deals they had.

My only other tip surrounds non-property investment BTL for example income-generating property (see my para above for a good example). Make sure you have a rough forward business plan before approaching the broker. It will make the process easier.