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  • FIRST POST
    • elly.alice
    • By elly.alice 13th Oct 16, 10:27 PM
    • 4Posts
    • 2Thanks
    elly.alice
    Should I use a mortgage adviser?
    • #1
    • 13th Oct 16, 10:27 PM
    Should I use a mortgage adviser? 13th Oct 16 at 10:27 PM
    Hello!

    So my partner and I are buying our first home. We've had free advice off an independent mortgage adviser, but are at the point now where we need our AIP and to start the application as we've had an offer accepted on a house (much earlier than we thought! So feeling a little underprepared!)

    I'm now doubting whether we need a mortgage adviser who will charge £400 for his services and whether he'll find us a better deal worth the money. But, I'm concerned doing it all alone will mean we mess up somehow?!

    Any advice from those who've been through the process with and without a independent adviser welcome!
Page 1
    • RhysHSCC
    • By RhysHSCC 13th Oct 16, 10:57 PM
    • 75 Posts
    • 28 Thanks
    RhysHSCC
    • #2
    • 13th Oct 16, 10:57 PM
    • #2
    • 13th Oct 16, 10:57 PM
    Use a broker. Honestly you can not go wrong with one. I work in the mortgage sector (not as an advisor, but more of a CSA role)and am looking to start an application soon, but instead of doing it myself I would rather get a professional to look after it to ensure it goes smoothly.
    Mortgage co-ordinator for a building society

    I carry out affordability assessments for new and existing customers.
    I update customers during the application when they call, letting them know where things are at.
    I also answer existing mortgage queries.
    • RhysHSCC
    • By RhysHSCC 13th Oct 16, 11:07 PM
    • 75 Posts
    • 28 Thanks
    RhysHSCC
    • #3
    • 13th Oct 16, 11:07 PM
    • #3
    • 13th Oct 16, 11:07 PM
    Also I deal with mortgage applicants who deal direct on a day to day basis, usually the applications can take longer as

    1. direct applicants don't always give accurate income and expenditure details, which can cause delays further down the line. E.g. Slightly overstating income at AIP stage can become a decline when underwritten as it fails affordability
    2. Broker are more likely to find the best deal over whole of market, lowest rate doesn't always mean cheapest deal, plus it saves the credit searches
    3. You could end up saying something you shouldn't which can lead to decline cases. Brokers usually know what to say and how to put things across

    I'm sure there are other reasons as above but I think it's worth the money if it means better chances of a mortgage offer
    Mortgage co-ordinator for a building society

    I carry out affordability assessments for new and existing customers.
    I update customers during the application when they call, letting them know where things are at.
    I also answer existing mortgage queries.
    • georgehere
    • By georgehere 13th Oct 16, 11:44 PM
    • 55 Posts
    • 17 Thanks
    georgehere
    • #4
    • 13th Oct 16, 11:44 PM
    • #4
    • 13th Oct 16, 11:44 PM
    I am not associated with the business of getting mortgages.

    I have had several mortgages over the years and only once used a broker which was for a somewhat complex situation.

    I would say if you are confident you know the difference between an interest only and repayment mortgage and you understand what the upsides and downsides could be of buying a fixed rate mortgage - then do it yourself .... unless you are in an unusual situation.

    When I did pay for a broker, they found the same mortgage I found for myself when I searched online. What was good though was that they took all the hassle out of the application process and got it through vey fast - and I was very happy to pay the fee for that.
    • minimike2
    • By minimike2 14th Oct 16, 12:32 AM
    • 1,725 Posts
    • 1,291 Thanks
    minimike2
    • #5
    • 14th Oct 16, 12:32 AM
    • #5
    • 14th Oct 16, 12:32 AM
    I'm now doubting whether we need a mortgage adviser who will charge £400 for his services and whether he'll find us a better deal worth the money.

    But, I'm concerned doing it all alone will mean we mess up somehow?!


    Which is it - You don't need one, or you are concerned about messing up. It isn't both. Decide which it is then make the decision based on that.
    I am a mortgage industry professional. 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
    • Whistler23
    • By Whistler23 14th Oct 16, 12:40 AM
    • 34 Posts
    • 8 Thanks
    Whistler23
    • #6
    • 14th Oct 16, 12:40 AM
    • #6
    • 14th Oct 16, 12:40 AM
    Advisor all day long.

    Also you had an offer accepted before an AIP, that sounds risky, and from reading on here I wouldn't have though any estate agent should have out forward an offer without checking your finances are in order? You are confident your credit files are all in order?
    • csgohan4
    • By csgohan4 14th Oct 16, 7:48 AM
    • 2,606 Posts
    • 1,611 Thanks
    csgohan4
    • #7
    • 14th Oct 16, 7:48 AM
    • #7
    • 14th Oct 16, 7:48 AM
    400 pounds in the grandscheme of things is a drop in the ocean for a mortgage costing 100's K.




    Make sure you get a broker that only gets paid on mortgage offer. That way your interests are better served


    Avoid Estate Agent based services too.
    • ap1985
    • By ap1985 14th Oct 16, 9:25 AM
    • 265 Posts
    • 106 Thanks
    ap1985
    • #8
    • 14th Oct 16, 9:25 AM
    • #8
    • 14th Oct 16, 9:25 AM
    I'd rather pay a broker then do it myself. A broker can take all the stress of the application away from you. Taking out a mortgage is enough stress for an individual without having to stress about dealing with the Lender.
    Finally going to be a homeowner
    • amnblog
    • By amnblog 14th Oct 16, 9:31 AM
    • 8,860 Posts
    • 3,374 Thanks
    amnblog
    • #9
    • 14th Oct 16, 9:31 AM
    • #9
    • 14th Oct 16, 9:31 AM
    400 pounds in the grandscheme of things is a drop in the ocean for a mortgage costing 100's K.
    Originally posted by csgohan4
    Agree with this.

    Make sure you get a broker that only gets paid on mortgage offer. That way your interests are better served
    Originally posted by csgohan4
    Can't agree with this. It's all about value for money and what suits you.

    Avoid Estate Agent based services too.
    Originally posted by csgohan4
    Agree with this - frequently lacking in knowledge and poor service - sausage factory
    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.
    • Scottycameron1
    • By Scottycameron1 14th Oct 16, 10:01 AM
    • 12 Posts
    • 2 Thanks
    Scottycameron1
    Remember the majority of the people who will reply to you on this are mortgage brokers. In my opinion no need to use a broker you can compare rates and products yourself online go into the bank and make an appointment with there mortgage advisor and go from there as long as your honest with them you'll be fine. Good luck
    • kingstreet
    • By kingstreet 14th Oct 16, 10:20 AM
    • 30,037 Posts
    • 15,966 Thanks
    kingstreet
    Remember the majority of the people who will reply to you on this are mortgage brokers. In my opinion no need to use a broker you can compare rates and products yourself online go into the bank and make an appointment with there mortgage advisor and go from there as long as your honest with them you'll be fine. Good luck
    Originally posted by Scottycameron1
    Finding the rate is 0.1% of the job.

    The other 99.9% is the graft of mortgage broking, ensuring the case fully meets lender affordability and criteria before you can submit even an agreement in principle.

    Then it's about gathering the right documentation, submitting the application and looking after it and the house purchase, right through to completion.

    You'd be amazed at the number of phone calls we take and emails we answer at all hours of the day and night, weekends, bank holidays, the lot.

    It is not all about the cost difference between 0.2% on the rate for a couple of years and a bigger fee etc. Anyone can work that out.
    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.
    • amnblog
    • By amnblog 14th Oct 16, 10:27 AM
    • 8,860 Posts
    • 3,374 Thanks
    amnblog
    Remember the majority of the people who will reply to you on this are mortgage brokers.
    Originally posted by Scottycameron1
    Yes, we are the people pulling borrowers who went direct 'out of the fire' every day.
    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.
    • Gunther Golf
    • By Gunther Golf 14th Oct 16, 10:29 AM
    • 62 Posts
    • 36 Thanks
    Gunther Golf
    I have to say i was in two minds about whether or not to fly solo or have a broker take care of things. I am delighted that i went down the broker route. Fee-free as he collects fee from lender and he dealt with everything from start to finish from AIP to Mortgage Offer in only 8 days.

    Superb service i have to say and no question asked was too daft for him. We are FTB and were apprehensive about the whole process - Process was smooth as silk thanks to our broker
    • dalo
    • By dalo 14th Oct 16, 11:29 AM
    • 147 Posts
    • 26 Thanks
    dalo
    I've done 3 mortgages now without. I really did a lot of research and number crunching, I work in finance I'm not saying that makes me any better but I felt comfortable without. If you don't feel comfortable going it alone then use one.
    • pjcox2005
    • By pjcox2005 14th Oct 16, 12:16 PM
    • 395 Posts
    • 397 Thanks
    pjcox2005
    I'd say I was very financially literate and comfortably meet mortgage lending criteria set, but have still used a broker for every mortgage to date. I use one that has the fee from the mortgage provider rather than a direct payment. I feel there systems are better setup to see rates, offers and show overall cost over period of low interest rate (e.g. 2 year intro) being able to reflect any costs charged.


    Hassle factor is definitely reduced as can be guided and do it all in one sitting.


    Only one I may not is the next given rates are so low, if lender will offer a new rate at similarly low amounts then I may just stay and not require the additional hassle as won't be much in it (assuming circumstances don't change in future).
    • SavingSteve
    • By SavingSteve 14th Oct 16, 12:57 PM
    • 476 Posts
    • 205 Thanks
    SavingSteve
    In your situation OP (first time buyer, unsure of next steps, afraid you may mess something up) I'd definitely be using a broker.

    However, unless you have a small deposit (i.e. only 5%), bad credit or feel tight on affordability I'd suggest you can get the services of a Broker without an upfront fee.

    £400 fee sounds steep if you're a straightforward case, in which scenario I'd suggest finding a no fee (remunerated only by Mortgage Co) broker.

    Whether fee or no-fee, make sure they are a whole of market broker.
    • elly.alice
    • By elly.alice 14th Oct 16, 1:00 PM
    • 4 Posts
    • 2 Thanks
    elly.alice
    Advisor all day long.

    Also you had an offer accepted before an AIP, that sounds risky, and from reading on here I wouldn't have though any estate agent should have out forward an offer without checking your finances are in order? You are confident your credit files are all in order?
    Originally posted by Whistler23
    At this point we'd done everything except the credit check with the adviser we've been seeing. Now have an AIP and everything is as our adviser said it would be, which is promising.

    From advice on here it seems I probably will end up going for broke[r] (sorry, terrible pun) and sticking with paying someone else to do our work. Will probably make me feel more comfortable in the long run! I guess it also helps our friend used the same guy just over a year ago and very much recommended him.

    Thanks for the advice.
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