FTB - Use Broker or not?

missgiddypants

Hi,

Me & my boyfriend are in the process of buying our first home. The house is £127500 and we have a 15% deposit. Monthly outgoings are £220 for my car & £35 each for mobile contracts. Boyfriend has £1600 on credit card.

We saw a mortgage broker last weekend who has come back to us with the best deal she can find being with Nationwide @ 5.73% over 2 years which will cost £680 per month with £995 fee.
I've done a bit of searching myself on the net and have found a mortgage with Yorkshire Building Society which is 5.23% over 3 years which would cost £664. I think the fee with them is £495.

Obviously I know which one sounds best to me but are we better sticking with the broker for our first mortgage? I'm a bit worried about how hard it is to get accepted for a mortgage at the moment - does using a broker give you more chance than of getting on than going it alone?

Thanks

dwsjarcmcd

Personally I would wonder why the broker would opt for a 2 year deal, is that what you asked for?

Re the YBS mortgage, that is not available to brokers, so she can't access it. Go onto the YBS website and do an 'agreement in principle'. It doesn't leave a credit check but will give you an excellent idea of whether you will be accepted.

So in answer to you final question, a broker cannot change the facts, so theoretically can't improve your chances. They can, however, probably present your case in its most favourable light.

With YBS (and the likes of Britannia, HSBC, First Direct) they cannot help you.

David

herbiesjp

WHat fixed term did you ask for though?

They have offered you a 2 year fixed rate, but you are looking at 3 year fixed rates.

You need to be comparing like for like.

In the current climate I would also query the benefit of a shorter term fixed rate though, unless there is something you have told the broker that has led them to explain why that is the best option.

Ian_Griffiths_Halifax

The others have said exactly what I was going to say. The broker has sourced you a 2 year deal, which I would consider to be a potential banana skin for you in 2 years time, and you've found a 3 year deal. As herbiesjp has said, you need to be looking at like for like, but I would consider a longer term Fixed, though some 5 year Fixed for FTBs are a complete rip off.

missgiddypants

Hi,

Thanks for the replies. I edited the OP to the 3yr YBS one because we looked again and couldn't see a 2 year one. Since then, I've found that they do a 2 yr fixed offset mortgage at 4.99%.
Nationwide have a 3yr fixed at 5.93% which gives us monthly payments of £695.

We're going to go for either a 2 or 3 year mortgage to start with as there is the possibility that we may have to move in 2 years time due to my boyfriends job.

Thanks

getmore4less

missgiddypants wrote: »

Hi,

Thanks for the replies. I edited the OP to the 3yr YBS one because we looked again and couldn't see a 2 year one. Since then, I've found that they do a 2 yr fixed offset mortgage at 4.99%.
Nationwide have a 3yr fixed at 5.93% which gives us monthly payments of £695.

We're going to go for either a 2 or 3 year mortgage to start with as there is the possibility that we may have to move in 2 years time due to my boyfriends job.

Thanks

It cost a lot more to move from an owned house than it does from a rental.

Also it is hard to time selling, easy to move when renting

I would factor in those costs and risks before buying now.

Dan_1976

We all know why the broker went for a 2 year deal. Do some research of your own, its not tricky.

Ian_Griffiths_Halifax

If you told the broker you think you may have to move in 2 years, they should have told you to think twice about buying.

What are the chances of you getting a buyer and moving in exactly 2 years? The chances are it will not be exactly 2 years and so you'd end up going onto the lenders Standard Variable Rate in between.

Renting, for now, is the obvious choice. If you buy now and properties drop in value by a further 10%, you've lost a lot of money.