Mortgage Broker Advice Please

Fat_Boy

I've found a SO flat in London that I'd like to buy. The share of 40% will cost £75k which shouldn't cause any problems on my salary (£27k), however I don't have any money for a deposit

I have been offered a mortgage through Forces Housing of £93k + approx £60k home loan. Obviously I don't need that much and would like to use them but they require a 5% deposit, so now I need to think hard about using a broker. As I'm a FTB I have precisley no experience of Brokers and was wondering how I should go about choosing one and how much they charge for their services.

Any other advice would be welcome too

Thanks.

Parks

Hi I am in the process of selling and buying. I have used London and County Mortgage brokers as advised by Martin. They do not charge a fee and are totally independant. I have to say in the 10 days I have been with them they have been fantatsic. When you agree which company to get your mortgage from they send you all the information and in it it tells you how much the company is paying L&C for the business so everything is transparent.

I did look around for a mortgage myself but could not beat the one L&C got me even though I tried the same mortgage doing it myself and I would have paid more.

L&C are v friendly and communications are excellent

dunstonh

Does Martin actually recommend L&C or are they just an example? - i must read that article.

They do not charge a fee and are totally independant.

As are thousands of mortgage advisers all around the country willing to give you face to face contact.

When you agree which company to get your mortgage from they send you all the information and in it it tells you how much the company is paying L&C for the business so everything is transparent.

As do all whole of market mortgage advisers.

L&C are v friendly and communications are excellent

Whilst you are satisfied with the service you got from L&C, in the interests of balance, you have pointed out nothing unique to L&C that you wouldnt expect any other whole of market mortgage adviser to do.

The only difference is that L&C 'd business model is direct where as local advisers are face to face. For those that like to see the mortgage research being done and see the list of providers in order as they appear on the research, as well as having all the paperwork done for them, face to face contact can be more desirable.

And before I get accused of bias, I am an IFA not a mortgage adviser.

Parks

I am sure that what you say is correct, having never moved house for 17 years I would not know. I read the guide by Martin where he recommends L&C used this advise and have left a post for OP to say I am happy with their service. Each to their own but the question was asked and I gave my experience so far

Fat_Boy

Parks - Thanks for your advice, I will have a look at L&C and have a read of Martins article.

Dunstoh - Thanks for your POV too. I have sent some details to an Online Mortgage Broker who should be getting back to me tomorrow hopefully. Do you suggest face to face meetings are better though?

Can I also just clarify that, if for example I used L&C, I wouldn't pay for their services as they earn a commission from whichever lender I go with?

dunstonh

Do you suggest face to face meetings are better though?

They can be. I do IFA level transactions face to face and by post/email/phone and both are fine. Face to face has advantages and require less work from you as the adviser will complete a lot of the forms instead of you. Plus you can see the research being done and the output data that comes from that.

Some people prefer face to face, others prefer direct. What we have noticed on the forums is that those that generally have complaints about L&C are not because L&C are doing anything wrong but more that the individual just isnt suited to direct advice and would be better with face to face contact.

Can I also just clarify that, if for example I used L&C, I wouldn't pay for their services as they earn a commission from whichever lender I go with?

If that is the option you choose. Larger mortgages may be better arranged on fee basis with commission rebated. The cost of advice and the options available to you (and the consequences of each) should be one of the first things discussed by any adviser (face to face or direct)

AndrewSmith

Mentioning forces housing i assume you are in the military?

If so can you not claim for your LSAP to use as the deposit? Apologies but i do not know if you qualifiy (length of service etc).

Getting 100% finaice on shared ownership is possible but more doors will be opened to you if you can get the deposit. LSAP can be used for exactly this and can also be used to cover the legal costs.

Just a thought

Fat_Boy

AndrewSmith wrote:

Mentioning forces housing i assume you are in the military?

If so can you not claim for your LSAP to use as the deposit? Apologies but i do not know if you qualifiy (length of service etc).

Getting 100% finaice on shared ownership is possible but more doors will be opened to you if you can get the deposit. LSAP can be used for exactly this and can also be used to cover the legal costs.

Just a thought

Yes I am in the Military.

They have changed the rules recently on LSAP so my length of service isn't an issue anymore, however I am worried about how much will be recovered from my wages each month to cover the repayments. I'm working on a figure of about £800ish a month for the mortgage/rent/service charge. This would leave me with approx £1k month for other expenditure.

Again as I don't have a deposit (but do have the £3.5k needed for legal fees/stamp duty etc) I am considering going for a 110% mortgage, so approx £82k, as I'm also going to need to buy some furniture (and a big TV - just kidding!!). What are your thoughts on that?

MortgageMamma

I think buying a big TV is very sensible, I have just got myself one today as it happens.

AndrewSmith

Have you spoken to the paymaster (or relevant person about the lsAP and implications?


Check out the T&C's here

http://www.army.mod.uk/soldierwelfare/supportagencies/aws/jshao/general/lsap.htm

MortgageMamma

The best advice I can give you is this http://www.currys.co.uk/martprd/store/cur_page.jsp?BV_SessionID=@@@@1010631132.1163369342@@@@&BV_EngineID=ccfdaddjggddhhgcflgceggdhhmdgmk.0&page=Product&sku=152221&category_oid=-30633&fm=10&sm=0&tm=0

I went straight into currys, didnt see a tv broker and bought straight from the shop. But I still got the right tv for me at the right price and I couldnt find it cheaper anywhere else.