Financial Advisor Leicester

I went to 3 banks for mortgage quotes, halifax, hsbc and alliance & leicester. Halifax could borrow me the most money, then hsbc, and then alliance & leicester.
I then looked around for some houses and the estate agent that i booked some viewings with had an independent financial advisor (IFA) working there.
He told me he could get me a better mortgage by carrying out a gifted deposit where no money would change hands, it is just a transfer of money and then i would avoid paying a higher lending charge and the monthly payments would be lower. He said he wouldnt charge me as a first time buyer, he just gets paid a fee by the bank (eg halifax).
Ive also seen a house i love, it is on the market for £110,000 but the couple are desperate to move out by september and received an offer for £95,000 a few months ago, considered it but declined.
So what i want to know is what would be a good offer, is an IFA better than a bank to arrange a mortgage and how does the gifted deposit work?
i got my offer accepted for 101grand, there was another offer at 100 but they accepted mine!
will see IFA sat morning and will not get information but not make a decision til im certain.
A few people i know recommend an IFA.

It is a common practice an you should go with the lower interest and the less money down...kr

Good Luck!

2007-06-16 13:43:38 by MysticMaiden2000

www.touchlocal.com At Santorini Financial Planning we always find out what is really important to you in your life.

About 12 months ago I took out a bank loan loan with Aliance & Leicester. I had read up on loan terms prior to applying and had read not to be pushed into taking out the banks own 'payment protection', however when refusing to take out this insurance the advisor informed me that the loan could not be issued without it. I had thought nothing of it and just paid it. However, I had a meeting with an Independant Financial Advisor yesterday on a completely different subject and the loan did arise in conversation. She said it was nonsense that I HAD to take out this cover with them, and said I could cover both my mortgage and loan for roughly 20% of what I pay for the loan on its own if I use an Independant Insurance company.

Can anybody shed some light on this matter, because I have been given two contrasting pieces of information from two 'reliable' sources and don't really know where i stand.....

Many thanks in advance

Your IFA is correct. Conditional selling is no longer allowed by the FSA/OFT. This means that lenders (loans and mortgages) cannot insist that you take out an insurance contract or they can't/won't lend you the money (the only exception is buildings insurance which is a legal requirement).

There is no legal requirement to have any form of personal insurance with a loan (or mortgage). PPI sold by lenders is a very expensive form of insurance, for, usually, only 12 month's worth of benefit. It usually pays your loan repayments for 12 month's if you are unable to work due to accident, illness or unemployment - no good if you are self-employed, incidentally. Redundancy protection is about all it's good for, but you can get cheaper ASU (Accident, Sickness & Unemployment) policies elsewhere on a standalone basis.

Personally, if you're looking at protecting income, I think that Income Protection (sometimes called PHI) is a far, far better product. It insures your salary/income whether you are employed or self-employed, and even an amount if you are housewife/husband, if you can no longer work due to an accident, illness or incapacity. You can also get a standalone redundancy protection policy. These are much more cost-effective products.

Alliance & Leicester have been fined by the FSA in the past for misselling PPI.

In the first instance, write to; Let’s Work it Out, Alliance & Leicester plc, Carlton Park, Narborough, Leicestershire, LE19 0AL.

Tell them that you believe that you were missold the PPI because you were told that you had to take it as a condition of the loan. Expect them to try and fob you off. If they do, write back and tell them that you want them to look at your complaint further. If they don't refund your PPI premiums and interest charged on the PPI, then pursue with the Financial Ombudsman Service. I've attached the links below.

It seriously peeves me that high street lenders have the arrogance to think that they can still get away with these practices, and it gives the rest of the financial services industry a bad name.

Good luck. Post back if you need any further help with your complaint!

2009-02-17 08:02:48 by Samwel