Mortgage Solutions

[NoMoreDreamingBoutIt]

Hello,

We are looking to rennovate our house ( which we reside in) and have been in discussions with Mortgage Solutions (& Financial Services). Our goal is to "do up" our house ( to make it more liveable and more saleable)and then sell it next year, and then buy 2 houses- 1 to live in and 1 to rent out and start building our portfolio from there.

Who else has had dealing with Mortgage Solutions? How have you found them.
Our initial plan was to get a flexible loan from our current bank- The National Bank- who we currently find to be pleasant to deal with. Going with Mortgage Solutions would mean we would have to change banks, probably to ASB. We have built up a good relationship with our personal banker @ National Bank.
It seems as though the MS plan is similar to having a revolving credit/flexible loan, but they control your budget. They are coming back tommorow night with the plan, and will probably want an answer then as to wether we want to change to them or not.

Any advice? Much thanks- E

[drelly]

Hi there and welcome to PT.

For those of us unfamiliar with them, what advantages are there in using them? If you already have a good relationship with your current bank, I'm wondering why you'd want to change when it seems there may be unwelcome controls imposed upon you?

cheers,
Dave

[BusyLizzy]

Hello,
They are coming back tommorow night with the plan, and will probably want an answer then as to wether we want to change to them or not.

Hi Dreamin',
I don't know anything about MS or their services so can't really comment about them specifically... but it does concern me that they will ask for an answer 'there and then'.

You should always have the option to think things over for a few days to weigh up your options. You may even want to go back to your original bank (National) and let them know why you are changing. Who knows, they may try to match what MS are offering, and then you'll get the best of both worlds (ie the better deal AND to keep the good relationship).

Good luck!

[Dean@Massiveaction]

Companies don't matter too much with brokers. It's the individual broker that is either good or bad. THose with a good name grow theri business based on their reputation. MS website doesn't have a single actual name anywhere or any real info about them. That would be enough to put me off.

[kitty]

hi there,
I met with someone like this recently - I can't recall if it was Mortgage Solutions or someone else, but they offered a similar service. They cold called me and a consultant came and met me at home. If I am correct, they are not just a mortgage broker as such, but you pay a fee (several thousand?) and they will manage all of your mortgages and other finances into the indefinite future.
I think that they can add value to a lot of people. Essentially they flog revolving credit mortgages, targeting those people who set up a fixed rate and fixed term mortgage and have a savings account sitting alongside it which is obviously sub-optimal.
The reason that they do the budgeting assistance is (and this is a bit cynical) because a few years ago these types of companies got all sorts of punters onto revolving credit mortgages without explaining that they still needed to pay off the floating component. Friends of mine suddenly bought a new car and overseas holidays that they couldn’t afford previously, because the consultant had said that they could just add them to the mortgage. The result is that they now owe considerably more than they did at the start.
My advice is that if you have a decent understanding of revolving credit mortgages, and you have a good mortgage broker or personal banker, then this type of service will be of very little value to you.
Hope this helps.
kitty

[BusyLizzy]

If you are after a revolving credit facility, I am sure there are many good alternatives out there.

Personally, I have been with NZ Home Loans for years, and have found them brilliant. I have been able to make lump sum payments and increase monthly payments many times now without ever having to pay penalities or extra fees. I believe there is a $200 startup fee now, but they also give you $200 towards Legal Costs..... so it balances out.

[Bodmin]

We used Mortgage Solutions at the start of our venture into property. We selected them after going to several different seminars as they were the most believable. It was the little extras they provided such as helping with house selection and the rental ad that added to our knowledge. We did not end up changing banks and now we deal directly with the bank.

[Belinda]

Looking at refixing IP and PPOR - total borrowing approx. 280k. Any good websites for deals/rates? Looking at shorter term fixes for obvious reasons - anyone currently pondering the same thing with a gem of advice?

[captaincrab]

I dont see why MS has to refinance your house elsewhere. It sounds like a blatant attempt to maximise their commission based on a higher loan value. Most reputable brokers would approach your own bank for the "top up" and then get the commission when they help you settle the next two properties you want to buy. Doing this sort of thing is called "churning" as in churning the fees over.