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  • FIRST POST
    • CashStrappedTeen89
    • By CashStrappedTeen89 21st Sep 16, 7:04 PM
    • 302Posts
    • 314Thanks
    CashStrappedTeen89
    Mortgage Adviser or source myself?
    • #1
    • 21st Sep 16, 7:04 PM
    Mortgage Adviser or source myself? 21st Sep 16 at 7:04 PM
    Just looking for a little guidance, looked on the "Martin Thread opinion on brokers" but its a bit out dated and I've realized how quickly the mortgage world changes.

    I've just got back from a meeting with an Independent financial adviser, one my boss actually used on his property(s), from first glance looks promising using basic details I've provided.
    Although I dont understand why he hasn't charged my boss a fee but quoted me £325.

    Just wondering if most go for brokers or look themselves in the end?.
Page 1
    • amnblog
    • By amnblog 21st Sep 16, 8:37 PM
    • 8,646 Posts
    • 3,236 Thanks
    amnblog
    • #2
    • 21st Sep 16, 8:37 PM
    • #2
    • 21st Sep 16, 8:37 PM
    If you don't know what you are doing you should engage a broker, you can't afford to get it wrong.
    Last edited by amnblog; 21-09-2016 at 9:26 PM.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ACG
    • By ACG 21st Sep 16, 9:24 PM
    • 13,182 Posts
    • 6,451 Thanks
    ACG
    • #3
    • 21st Sep 16, 9:24 PM
    • #3
    • 21st Sep 16, 9:24 PM
    My fees vary from client to client. The fee varies depending on the complexity and size of the mortgage. If im writing a £500k mortgage, the commission is more than it would be on a £50k mortgage, so I can afford to reduce the fee.

    But the broker has done a number of mortgages with the broker, so they have a relationship. I have a joiner who does work for me at reduced rates as he has done loads..economies of scale and all that.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • CashStrappedTeen89
    • By CashStrappedTeen89 22nd Sep 16, 9:51 AM
    • 302 Posts
    • 314 Thanks
    CashStrappedTeen89
    • #4
    • 22nd Sep 16, 9:51 AM
    • #4
    • 22nd Sep 16, 9:51 AM
    Thanks ACG, I didn't think it was that complicated a mortgage as there's 2 of us, 2 dependants, barely any debt and no loans and a big deposit, size of mortgage is around 180K, I say around as were looking at houses between £150,000 and £200,000 and I'm aiming for around a 15% deposit so I can invest the rest of my money elsewhere as my partner will own half of this house.
    The most complicated bit is through a solicitor anyway as I'm protecting my investment with a contract as I'm paying the full deposit, unsure if it would be classed as a prenup. I need to discuss that with a solicitor though.
    • stator
    • By stator 22nd Sep 16, 9:55 AM
    • 4,915 Posts
    • 3,107 Thanks
    stator
    • #5
    • 22nd Sep 16, 9:55 AM
    • #5
    • 22nd Sep 16, 9:55 AM
    Unless you have a specific reason I would just do it yourself.
    Changing the world, one sarcastic comment at a time.
    • ACG
    • By ACG 22nd Sep 16, 9:56 AM
    • 13,182 Posts
    • 6,451 Thanks
    ACG
    • #6
    • 22nd Sep 16, 9:56 AM
    • #6
    • 22nd Sep 16, 9:56 AM
    I think its called a deed of trust. The solicitor will sort that out as you say.

    Its not overly complicated by the sounds of it, but the commission is around £400 gross. From that there are deductions, compliance costs, insurance, etc etc and then the tax man wants his cut. From a broker perspective, I would charge a fee on it also and I do not think £325 is too bad. But obviously it is your money at the end of the day, its easy for me or anyone else to say its a good deal.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • FBaby
    • By FBaby 22nd Sep 16, 10:18 AM
    • 13,801 Posts
    • 35,453 Thanks
    FBaby
    • #7
    • 22nd Sep 16, 10:18 AM
    • #7
    • 22nd Sep 16, 10:18 AM
    The only issue with a broker is that they don't have deals with all lenders and depending on your circumstances, might not offer you the best deal you could find for yourself.

    It's what happened to me when I was a FTB. At the time was looking at 100% (when you could still do it) so clearly an expensive package. As it turned out, my bank HSBC were doing a special deal for their own graduate customers and that turned out to be a much better deal then the best the broker could offer. HSBC didn't deal (still don't?) with brokers so glad I ended up looking for myself.

    When years later I looked for a BTL, the circumstances were such that the only mortgage I could get was only available via a broker, so went that way.
    • David White
    • By David White 22nd Sep 16, 10:54 AM
    • 614 Posts
    • 249 Thanks
    David White
    • #8
    • 22nd Sep 16, 10:54 AM
    • #8
    • 22nd Sep 16, 10:54 AM
    You mention your boss having more than 1 property.

    It's plausible that the broker has waived their broker fee due to doing repeat business with them.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • muhandis
    • By muhandis 26th Sep 16, 1:38 PM
    • 32 Posts
    • 9 Thanks
    muhandis
    • #9
    • 26th Sep 16, 1:38 PM
    • #9
    • 26th Sep 16, 1:38 PM
    I went to a broker because we needed to maximise the amount lent and my pay was structured as basic+commission+bonus so I needed a lender that would consider this kind of income favourably. Eventually went with NW (who were willing to lend us twice as much as some other mainstream lenders).

    Plus the area that we were buying has a very high buyer:seller ratio so I needed someone whom I could follow up with in case of any delays.

    On the other hand if my salary was just a simple basic and I was buying in an unhurried fashion, I might have considered going direct to the bank.

    Just looking for a little guidance, looked on the "Martin Thread opinion on brokers" but its a bit out dated and I've realized how quickly the mortgage world changes.

    I've just got back from a meeting with an Independent financial adviser, one my boss actually used on his property(s), from first glance looks promising using basic details I've provided.
    Although I dont understand why he hasn't charged my boss a fee but quoted me £325.

    Just wondering if most go for brokers or look themselves in the end?.
    Originally posted by CashStrappedTeen89
    • MortgageMamma
    • By MortgageMamma 26th Sep 16, 1:46 PM
    • 6,153 Posts
    • 3,028 Thanks
    MortgageMamma
    Using a mortgage broker gives you an advantage as if they know their stuff they will know which lenders criteria you will fit fairly quickly and which lenders not to touch. I understand it is possible for you just to go to a lenders website and look at the criteria yourself but its not always straightforward and there are certain things they do not publish.


    Using a broker sorts the wheat from the chaff. You have a higher chance of success first time and someone to fight your corner - for example to help you challenge a down valuation or explain an anomaly on your bank statements or a non straightforward pay structure.


    If you are happy with the broker you have seen then you should let him do his job and arrange your mortgage. Its common for a broker to charge a client a "lifetime advice fee" I do this myself, my clients pay £495 the first time they engage me and nothing thereafter.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • fewcloudy
    • By fewcloudy 26th Sep 16, 2:23 PM
    • 116 Posts
    • 59 Thanks
    fewcloudy
    Just looking for a little guidance, looked on the "Martin Thread opinion on brokers" but its a bit out dated and I've realized how quickly the mortgage world changes.

    I've just got back from a meeting with an Independent financial adviser, one my boss actually used on his property(s), from first glance looks promising using basic details I've provided.
    Although I dont understand why he hasn't charged my boss a fee but quoted me £325.

    Just wondering if most go for brokers or look themselves in the end?.
    Originally posted by CashStrappedTeen89

    Broker every time for me. Just a few months reading this message board should be enough to convince you!
    Can't imagine how worrying it must be, approaching deadlines and having to chase up lenders to check how application is progressing (slowly) with no-one in your corner other than your solicitor (who never returns your calls) to help you.

    Yes things do change, and as I am not a 'mortgage hobbyist' who knows this subject inside out, I am more than happy to bow to someone else's superior knowledge for the relatively few occasions in my lifetime that I will need to change mortgage products.

    fc
    Feb 2008, 20year tracker with Sproggit and Sylvester, 0.5% + base for 2 years, then 1% + base for life of mortgage. Overpaying like crazy, nothing lasts forever.
    • SavingSteve
    • By SavingSteve 26th Sep 16, 2:37 PM
    • 403 Posts
    • 172 Thanks
    SavingSteve
    Not a fan of lifetime fees myself. The fact of the matter is that under that arrangement the broker is earning fees via the commission. So at that stage you're no different from a fee fee broker.
    • David White
    • By David White 26th Sep 16, 2:39 PM
    • 614 Posts
    • 249 Thanks
    David White
    I understand the logic of a lifetime fee however it's not for me business wise.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • MortgageMamma
    • By MortgageMamma 26th Sep 16, 2:44 PM
    • 6,153 Posts
    • 3,028 Thanks
    MortgageMamma
    I think its a highly individual thing how we charge our fees. I work on this basis as I live in a small area not connected to a particular city or large town and most people know each other. As such there is a big wealth divide in this area and I couldn't with good conscience charge a client for repeat business. Most of my business is face to face and comes from referrals from existing customers and friends. When people take the time to sit down in front of you, they see the effort you make and you don't lose clients you gain them.


    Internet clients on the other hand I find are less reliable and its not my preferred business model - you can get used and abused if you work fee free over the internet. So I can understand why a broker would charge a fee every time in this instance, or perhaps if they lived in a wealthy area and were giving very complex advice.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • amnblog
    • By amnblog 26th Sep 16, 4:37 PM
    • 8,646 Posts
    • 3,236 Thanks
    amnblog
    I understand the logic of a lifetime fee
    Originally posted by David White
    You are one up on me then David.

    I don't see how it works for the client or the broker.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Retrievermomma31
    • By Retrievermomma31 27th Sep 16, 1:25 PM
    • 15 Posts
    • 10 Thanks
    Retrievermomma31
    Don't bother with a broker.
    No offence to any on here, but in my experience they are completely useless and a waste of money.
    Why pay someone to do something you could easily do yourself?

    Had a bad experience with the first one I saw, who applied for multiple mortgages on my behalf with hard footprints. A year later and my credit score is still suffering.
    • CashStrappedTeen89
    • By CashStrappedTeen89 27th Sep 16, 1:39 PM
    • 302 Posts
    • 314 Thanks
    CashStrappedTeen89
    Thanks all, I am looking on my own I would be insulting MSE if I didn't, its just time I'm short on so going to all the lenders directly sometimes just doesn't work.
    Think I need to have a good few nights at it and then also look at what my options are with banks etc.
    • kingstreet
    • By kingstreet 27th Sep 16, 1:45 PM
    • 29,644 Posts
    • 15,716 Thanks
    kingstreet
    Finding the rate is 0.1% of the job.

    The other 99.9% is satisfying lender criteria, docs requirements etc and smoothing the way to a quick and easy offer.

    There are poor brokers out there, just as there's poor everything but on here we get more issues with those going direct than those using a broker, IMHO. There is little "joined-up" thinking and lenders are very poor at explaining how the mortgage and purchase processes work together and "what happens next" is often left to chance.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • David White
    • By David White 28th Sep 16, 1:59 PM
    • 614 Posts
    • 249 Thanks
    David White
    Had a bad experience with the first one I saw, who applied for multiple mortgages on my behalf with hard footprints. A year later and my credit score is still suffering.
    Originally posted by Retrievermomma31
    Firstly you do not have a universal credit score and secondly if you're having issues getting approved for credit a year after you had these credit searches done I can tell you now that there's a bigger issue on your report causing the declines.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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