Motley Fool: How Not To Get A Mortgage

This is a true story, about how a friend’s nephew was almost driven to penury in his quest for a mortgage (I’ll just call them “nephew” and “uncle” to protect their privacy). Nephew’s mistake, common to many, was to seek the services of one of those mortgage salesmen who masquerade as financial advisors (you know, the kind who work on commission and who make more money the more expensive a deal they sell you).

The total monthly outlay quoted by the salesman was £800 a month for a mortgage on a small flat, which is a lot of money for a young man. But Uncle came to the rescue, and by doing some online searches he quickly found a mortgage deal at £620 a month. “So that’ll be £800 a month either way” said nephew. “What?” enquired Uncle. “Well, add the £180 monthly insurance, and it’s £800”. Dumbstruck, Uncle went back to his keyboard and found alternative insurance at £28 a month, to cover life and critical illness. Include nephew’s partner, then add buildings and contents insurance, and the princely total was £70 a month a saving of a whopping £110 a month over what the commission-hungry salesman was trying to sell him….

Continue reading this article at the Motley Fool

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