4.2 Comparing Different Providers
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Annual Payment Reviews are important planning dates, as
these are the dates at which any changes of interest rate take place.
If the date is after a reduction in the rate, there may be a short-term
'loss' and vice versa. It may be worth investigating the advantages
of switching to the 'immediate' change system; any charges imposed
for the switch may make the exercise too expensive.
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Portability, or the potential to transfer an existing loan
to a new house for the remainder of the existing term, could save
money in rearrangement fees. It could also save expense where an
existing loan is at a low fixed rate of interest.
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Quality of Service is of particular importance in terms
of decision making and processing the paperwork. This also includes
how flexible the lender's systems are in being able to accommodate
less favourable surveys than expected, for example. Similarly, staff
attitude is important e.g. are they helpful in terms of suggesting
solutions to problems, or do they merely fulfil their basic processing
roles.
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Ancillary products may be compulsory with some providers,
especially where the loan is based on some sort of special deal.
Such products may be household insurance, or additional personal
insurances such as IPI.
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Further Advances and ease of availability may be a consideration,
especially where the property is to be subject to a programme of
renovation or alteration. Planning may be difficult, because markets
change, but it may be possible to arrange for provisional undertakings
to provide additional advances at the outset of the loan. It may
be necessary to ensure completion of a project
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