Martins View On Using Mortgage Brokers...

jacand

My Husband and I are looking for a mortgage, I have searched for a whole of market fee free broker in my area, but I'm really struggling to find one. Can anyone help?

dunstonh

I have searched for a whole of market fee free broker in my area, but I'm really struggling to find one.

Whole of market fee free would mean you eliminating independents (or requiring an independent to work on commission basis instead). Your requirement means only commission paying lenders would be considered. If you are in a low value area, it may be that the mortgage advisers cannot afford to be fee free.

What size mortgage is it?

jacand

dunstonh wrote: »

Whole of market fee free would mean you eliminating independents (or requiring an independent to work on commission basis instead). Your requirement means only commission paying lenders would be considered. If you are in a low value area, it may be that the mortgage advisers cannot afford to be fee free.

What size mortgage is it?

We live in Cambridgeshire, but are looking to buy in the North. We want to have the mortgage in place before we go looking at houses.
The mortgage would be £125k as we have a very large deposit.
I admit we know very little about obtaining a mortgage and any help would be appreciated. I have looked at Martin's guide and it did say to look for a fee free whole of market broker, which is what I've been looking for. I never thought of it as limiting the lenders, but it makes sense. Thanks

dunstonh

The mortgage would be £125k as we have a very large deposit.

So, not a very big commission (about 0.3%). That may be why.

I have looked at Martin's guide and it did say to look for a fee free whole of market broker, which is what I've been looking for. I never thought of it as limiting the lenders, but it makes sense. Thanks

Martins article on mortgages is not very good. It totally disregards the independent option.

stephendelaney1970

Hi, I want to buy my council house and dont know anything about morgages or where to start.
My house is valued at 80k with 50% discount = 40k.
I earn 35-40k and have around 6k for a deposit.
Can i borrow more for improvments?
Do i just get a broker?
Thanks.

Jellybean_2105

stephendelaney1970 wrote: »

Hi, I want to buy my council house and dont know anything about morgages or where to start.
My house is valued at 80k with 50% discount = 40k.
I earn 35-40k and have around 6k for a deposit.
Can i borrow more for improvments?
Do i just get a broker?
Thanks.

Can anyone help with this? I am also in a pretty similar situation except we dont have a deposit.

So hard to know where to start with it all, where is the best place to look for a broker?

Thanks

dunstonh

Jellybean_2105 wrote: »

Can anyone help with this? I am also in a pretty similar situation except we dont have a deposit.

So hard to know where to start with it all, where is the best place to look for a broker?

Thanks

No deposit = no mortgage.

Jellybean_2105

dunstonh wrote: »

No deposit = no mortgage.

Even with the right to buy discount (£75k) ? We will need a mortgage of £60k.

kingstreet

No. You do not need a deposit for a RTB.

It's normal to borrow 100% of the discounted purchase price. You may be able to borrow a little more for a genuine home improvement purpose, although you can expect scrutiny from lender and council on what you intend to do with the money.

Try https://www.unbiased.co.uk, switching off the "sponsored ads only" option so you get a full list for you area. Be careful of ads for "RTB Specialists" as they seem to think your low mortgage amount and no deposit is a queue for them to charge you thousands in fees.

For example, if you are a RTB client, or are purchasing or remortgaging, we charge £249 for our whole market service and are paid commission by the lender. You'll normally have a valuation fee to pay to the lender and solicitor's costs. The whole purchase should cost you no more than £1,500 in fees, assuming the property value is under the stamp duty threshold.

NB we only operate on a face to face business in our area, so this is not an attempt to tout for business. TBH we're too bloody busy to need to do that anyway...

Jellybean_2105

Ah excellent, I did think that was the case. The previous comment had me worried!

That's really helpful, thanks I will take a look. Should they tell me up front all costs that will be charged?

The property has been valued at £135k but from what I have read we don't need to pay stamp duty as it goes by the price we are purchasing for is that correct?

Will all fees need to be paid upfront or can it all be included into the mortgage?