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Homebuy direct- independent financial advisor query

Last post Wed, Nov 04 2009, 9:20 AM by cmartin27. 3 replies.
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  •  Sun, Oct 04 2009, 1:03 AM

    Homebuy direct- independent financial advisor query

    Reply Quote Spam
    Hello all
    Me and my partner are looking to buy a house- We have saved up a good lump sum for a deposit, however, because my partner is self-employed the banks want 15% deposit, which is impossible to obtain. Especially since the birth of our 8 month old baby!!

    We were looking into the homebuy direct scheme, and we have spoken to many of the developers agents of which all insist on using their own Financial advisors.

    We have a prefectly good financial advisor, who I know can complete the house buying process quicker and smoother than their advisors- as we are in a hurry to move, we need to vacant our currently rented property buy the end of Feb. I have spoken to my financial advisor about this and he said that it is not necessay to use their Financial advisors.

    So basically I was wondering if anybody has done this- has anybody used a finanical advisor not recommend by the developer.
    I would be grateful for any advice
    Thank you so much    Rachel88
    • Post Points: 20

  •  Sun, Oct 04 2009, 1:48 AM

    Re: Homebuy direct- independent financial advisor query

    Reply Quote Spam

    I would reccomend NOT using the financial advisor linked to the developer and also avoid using any reccommended solicitor.

    I think that there is a conflict of interest in these relationships, and I personally don't like the hard sell type approach when these reccomendations are made.

    Just tell them you already have an IFA that you have known for a long time, and have already got things moving.

    If a developer too strongly pushes the use of a FA it is likely that there is some commision that would be fed back to the developers, and I'd consider walking away.

    It is just bully boy tactics.

    Good luck with it.

    Sparky.

    • Post Points: 20

  •  Sun, Oct 04 2009, 10:10 AM

    Re: Homebuy direct- independent financial advisor query

    Reply Quote Spam

    Thanks Sparky

    'bully boy tactics' thats exactly what they were doing- it is almost like they are blackmailing us- use own FA's or you don't get the house. Well in that case- like you said we would walk away!

    Thanks so much for your information- it has really helped

    Thanks again

    Rachel88
    • Post Points: 20

  •  Wed, Nov 04 2009, 9:20 AM

    Re: Homebuy direct- independent financial advisor query

    Reply Quote Spam

    I have had exactly the same experience with the developers I've been talking to about HomeBuy Direct. They assume that as a first-time buyer you are totally green and push you to their FA's.

    Having looked at the forums though there is very little choice in mortgages out there, most banks won't touch this scheme with a barge-pole it seems and those that are available from RBS, Halifax, Nationwide or Woolwich are quite dear.

    I've given up fighting the developer on this and gone with their FA simply because of the limited choice.
    • Post Points: 5