First Time Buyer and broker

blueblazer

Hello,

I'm a first time buyer. I'm looking to get a house worth around £130000 and have got a deposit of £45k but can increase it to £52k if required (to get 60% LTV). I've seen the lifetime tracker special at HSBC in the newspaper for base rate plus 1.89% which seems pretty good and recommended on the net. The estate agent has offered the services of their broker but at the bottom of the letter it mentions about a 1% fee that can be charged. None of my family are mortage experts but we are concerned that the broker will offer us the same HSBC deal and then charge us for his services when we could have just gone direct to HSBC?

Anyone got any advice on whether it is worth seeing a broker even if they might charge (I'm confused about what they charge for) or is is better to go straight to the bank?

Thanks very much

GMS

HSBC do not deal with brokers so if you want the HSBC deal you need to go direct.

Speak to a broker but not the estate agents broker. There are reasons for this one of which is that they will be aware of your borrowing limits and COULD use this to get a better price for the vendor.

There is more to consider than the rate. Look at fees such as arrangement and valuation. Often the fees can make a headline rate mortgage dearer than an alternative.

Most brokers will look at your options for free so it is worth trying. Also agree any fees up front, and preferably get them payable on completion only.

If you apply to HSBC double double check criteria. They are very strict and reject many applications