I’d like to carry on the theme from last week when I was looking at local services and talk about what a mortgage broker in Chester told me. Firstly congratulations to Your Local Brokers Chester because when I was looking for the best mortgage brokers Chester had to offer these guys came to my rescue.
Seriously, I tried everyone. They were crap. Then I checked out the Local Brokers site and I read reviews that other customers had been leaving for these companies and it soon became clear that I wasn’t the only one who didn’t get the best service.
Anyway, down to the point. My broker “Kevin” said to me that the main difference between a mortgage broker and a comparison service (which seem to be everywhere these days) is that they can give you advice that you just won’t get online. Here’s what Kevin said to me:
“Your mortgage rate is going to change, you’re on help to buy and when it kicks in 5 years time you’ll have to start paying the interest on that additional part of the loan. So what you do is come back to me in 5 years time and I know I can find you another mortgage at a cheaper rate than the increase and so even though you’ll start paying the interest to the Government you’ll basically keep your repayments the same because I can get you a cheaper deal. Not only that, if you start putting away the additional interest payment now into a separate bank account you can award yourself payment break further down the line if you want to take a break from paying the interest because you’ll have that additional money squared away.”
It’s not bad advice. My first thought was well why can’t you just get me an even better deal right now, why wait until 5 years have passed to get me a cheaper rate. I didn’t actually say that though because it’s almost too obvious, it just felt a bit odd because I was putting this guy’s professional opinion on the line in favour of my own fly by night expertise.
Anyway, see what you think of this advice, I’m going to go back in five years time and if he’s still there and manages to get me a better mortgage I’ll post the answer in here assuming I’m still running this blog by then eh!
If you have the answer to this yourself then please leave a comment below, it would be good to hear what everyone’s opinions on the matter are!