Unfortunately, the jobs market has not improved since then – far from it. In fact, according to recent newspaper reports, this summer’s graduates are facing the most intense scramble for employment in a decade. On average, each graduate post attracts nearly 70 applicants, whilst the number of available positions is predicted to fall by nearly 7%.Direct deal or no direct deal?
Author: Greg May
Have you seen the latest pronouncement from HSBC? After analysing data from Moneyfacts, HSBC have claimed that in 93% of mortgage deals, customers achieve lower rates by going directly to lenders rather than through independent mortgage brokers.
Now, of course, HSBC would say this. But it’s an incredibly blinkered view, not to mention misleading. There are so many other factors to take into account.
For a start, customers who go straight to lenders will restrict their mortgage choices to the lenders’ products only – they won’t be able to look across the whole of the market. How can customers be sure they’re getting the mortgage that best matches their individual needs – for instance, if they’re buying a new build property, or if they’re first time buyers? There’s so much more to finding the right product than just looking for the lowest rate.
The Moneyfacts data doesn’t seem to take lenders’ fees into account either – without this, the definition of ‘lowest rate’ is pretty meaningless!
Then there’s the question of credit rating. Some lenders have stricter criteria than others – so some customers may have their mortgage applications turned down. The danger is that if they make too many applications which are declined, they’ll accumulate too many credit searches against their name. This will reduce their credit score and could seriously hamper their chances of getting any mortgage at all. An independent mortgage adviser is able to steer a customer towards a lender who is more likely to accept their application.
I could go on (and I frequently do!) I’m all for healthy competition and HSBC are of course defending their own corner. But I don’t want customers to take mortgage decisions based on incomplete data that has been interpreted rather loosely – especially for what may be the single biggest purchase they’re likely to make!
One persistent story that’s been doing the rounds is that it’s still difficult for buyers to get a mortgage – so I think it’s high time to bust that particular myth. Did you know, for example, that mortgage availability has increased by 65% in the last six months? According to finance researchers Moneyfacts, there are now over two and a half thousand mortgage products available, compared with 1,600 just six months ago.
