Opinion on our chance of a mortgage?...

toonfish

leannie wrote:

Update -
Her opinion on fee free was that they can't offer a service like her as they have to get as many people through the door as possible to get decent commission. She mentioned how she usually deals with high net worth customers, so some comapnies would do her a deal on a mortgage like ours on the hope she would send one of her regular clients thier way.

she doesn't sound very "professional" does she?

Lenders may "do a deal" with brokerages it's true, depends on how much business you give them, and the quality of their development managers but I find they are much less likely to these days with so much computerised credit scoring. There are still som ecompanies that giv ethe underwriters and managers the mandate to overrule and stretch lending but not many.

Ask her how much of her fees/commission end up with the big legal firm she works for, as opposed to a bhroker with little overheads.

You don't have to get vast numbers of clients through the door to make a decent living as a fees fee broker, or at least we don't.

Deal with the one you feel most comfortable with, or get both to make a recommendation and go with the deal that suits you

MortgageMamma

I think the fee's broker sounds very unprofessional, and lets face it, if she is such a high profile investment broker, with lots of high net worth clients, why is she even bothering to take on such a small and (from what she says) insignificant mortgage such as your own? Most advisers in her reported position, and I know because I work with one, would just refer the mortgage onto their mortgage specialist.

She's spouting you a load of crap I'm afraid - another thing I would say is, if she specialises in investments for HNW clients, her mortgage knowledge cannot be that good. Jack of all trades, master of snobbery?

One thing I would say is, as a fee's free whole of market broker myself, I am not desperate to get business through the door, and I earn what I earn. I don't have targets set and don't set any for myself, and I don't have to pay away any of my commission as an employee broker would. I'm chilled with my clients and give them all of the attention they need, and I don't use my status or knowledge to intimidate them. Give this woman a wide berth and use the whole of market broker that the B&B lady referred you onto. You are better off going to a smaller company/self employed individual where you will get the attention which is rightfully yours as a client.

It important you feel comfortable and trust your adviser, and also that the adviser values your business and respects your feelings.

MM

leannie_2

Thank you!
The fee free lady seemed as nice and approachable as the lady at B&B, she explained her company, where she sits within this grand scheme of things with the legal company (and also a buidling society who share the same property) and made a point of reassuring us she was not linked to them, she was independant, but they did share office space and therefore had negotiated local deals/discounts between them, which no clients of any of them were under any obligation to take. She also mentioned her qualifications, and a brief career history, she was chatty, knowledgeable and put me at ease.
The fees lady, does make me feel like bit of a pleb, and I think she is probably only dealing with me as my friend's family have a very high net worth and are one of her major clients. When she never rang me back initially, my friend phoned to ask when she would be in the office as I had left a message and she called back within 10 minutes. I feel like she has assumed we will use her because of explanation, and also because of my friend.

MortgageMamma

put her in her place then - I'd definately go with the fee's free lady - sounds more down to earth AND she spent time explaining and reassuring you

leannie_2

Hi...right well...
The fee free lady has come back with the following two possible deals:

Northern Rock - 6.19% fixed for 5 years, no higher lending charge, cashback on completion (amount not specified), but...only if we rated as 'high' on their credit scoring system, and I don't think we are going to do that.

RBS - 6.25% fixed for 3 years, would lend to a maximum of £160k, a higher lending charge of approx £4.5k would apply and would be added to the mortgage. There are various incentives including free valuation/1% cashback and £200 cashback.
RBS wouldn't tell her what credit score level would get the above deal saying that it was for an average customer with a high multiple.

I don't know why Northern Rock have said different things and given different rates to each broker, and I am quite confused as to what to do to be honest. Both brokers have left it for us to consider, and we have to phone both of them tomorrow.
Any advice???

leannie_2

Hi...right well...
The fee free lady has come back with the following two possible deals:

Northern Rock - 6.19% fixed for 5 years, no higher lending charge, cashback on completion (amount not specified), but...only if we rated as 'high' on their credit scoring system, and I don't think we are going to do that.

RBS - 6.25% fixed for 3 years, would lend to a maximum of £160k, a higher lending charge of approx £4.5k would apply and would be added to the mortgage. There are various incentives including free valuation/1% cashback and £200 cashback.
RBS wouldn't tell her what credit score level would get the above deal saying that it was for an average customer with a high multiple.

I don't know why Northern Rock have said different things and given different rates to each broker, and I am quite confused as to what to do to be honest. Both brokers have left it for us to consider, and we have to phone both of them tomorrow.
Any advice???

leannie_2

Oh, and does anyone know which lender (Northern Rock or RBS) is better for a tad below average credit rating (no loans outstanding but debt on a credit card and up until about 3 years ago was stupid so some late payments and a default for £36 3 years ago for Studio Cards). As I mentioned earlier, my credit score on Experian is 709.

sm9ai

leannie wrote:

Situation -
Me - good job which I have been in for 3 years, stable in a local authority, pay of £21k which goes up by £1500 - £2000 each year, I am at the bottom of the payscale so have 10 rungs of the ladder before running out of increments.
I have £4000 cc debt, which I am paying off and for the past 2 - 3 year have been really good with my finances, but as a student and recent graduate, I was useless and my credit rating has suffered because of it. I have no CCJs but had a default for £30 about 3 years ago, from a mistake with a mail order company plus a lot of late payments.
My OH, has been in his job for 3 years, only on £12k per year but this will increase to £15k later this year, he has been helping to build up the company. He has a two store cards with a joint balance of £1k, but has a good credit rating.
We have moved about quite a bit, as graduates getting new jobs and stuff. But have settled here for the past 3 and half years.
We have rented houses for 6 years, never missing a payment, currently paying £700 per month.
We have seen a house we want to offer on, but will need to offer £150k, and require a 100% mortgage...do we stand a chance?
(I know we should try to save a deposit, pay off our cards etc, and we have been doing, so far paying off both our graduate loans early, I have payed off one credit card completely, and both of us have paid off our overdrafts, and it feels like we will never get a chance if we wait until we have paid off everything and managed to save a deposit)

I'm sorry to suggest bad news, but I can't be the only one to think "ARE YOU MAD!!!!" (And please don't take offense to anything I've written)

You want to borrow £150k+ whilst earning a joint salary of only 33k.

You are relying on future pay rises which could easily disappear (a job evaluation could wipe out any future increases for you, and you oh is expecting a 25% increase!!! Is this going to happen or is he just being told this to keep him quite?)

If you get these pay rises then your joint salary would be around 38k but at least wait until you get the pay rises.

Plus you have 4k debt on a cc. (I assume this is on 0% cards, or a 4% for life type deal - but even so clear this asap)

Your a graduate, your supposed to be the brightest x% of society. But it sounds like your acting out of desperation and not thinking clearly, when there is absolutely no need to.

leannie wrote:

and it feels like we will never get a chance if we wait until we have paid off everything and managed to save a deposit)

Why?

leannie_2

sm9ai wrote:

I'm sorry to suggest bad news, but I can't be the only one to think "ARE YOU MAD!!!!" (And please don't take offense to anything I've written)

You want to borrow £150k+ whilst earning a joint salary of only 33k.

You are relying on future pay rises which could easily disappear (a job evaluation could wipe out any future increases for you, and you oh is expecting a 25% increase!!! Is this going to happen or is he just being told this to keep him quite?)

If you get these pay rises then your joint salary would be around 38k but at least wait until you get the pay rises.

Plus you have 4k debt on a cc. (I assume this is on 0% cards, or a 4% for life type deal - but even so clear this asap)

Your a graduate, your supposed to be the brightest x% of society. But it sounds like your acting out of desperation and not thinking clearly, when there is absolutely no need to.



Why?

Why? Because I live in Cornwall, and a mobile home can sell for £135k (yes I am serious...) we are the most deprived county in the country, with the average house being 11 x the average wage in the county.
An 'affordable' house is classed at costing £120k, so far in my town 6 have been built in the past 2 years, there is a waiting list of 300+ plus for the housing. We do not qualify for housing association housing as we are a couple without children, in full time work.
We have been waiting for a few years, watching the houses in our area rocket in value, the house next door was bought 4 years ago for £58k it sold last summer for £172k. It is a two bedroom (one double, one single, terraced house with a small back garden and no parking or garage).
My OH was offered half of the company he works for, but we declined as we didn't want to go into that whilst not secure elsewhere. Therefore in order to keep him, his boss has committed to increasing his wage in April.
We already pay £700 a month plus bills in rent, our landlords have the option to increase our rent by the rate of inflation each April, luckily they haven't for the past two years but we have been warned they may have to due to the recent rises in rates.
And the only reason we are looking seriously now, is that we have seen a house which ticks every box, we could live in for the next 20 years and not need to move, which we may be able to get for £150k, and as it is in a stamp duty relief zone (which is likely to change soon) we would not have to pay stamp duty....

sm9ai

leannie wrote:

We already pay £700 a month plus bills in rent, our landlords have the option to increase our rent by the rate of inflation each April, luckily they haven't for the past two years but we have been warned they may have to due to the recent rises in rates.

I wouldn't worry about that, threaten to leave and they would back down straight away.

leannie wrote:

And the only reason we are looking seriously now, is that we have seen a house which ticks every box, we could live in for the next 20 years and not need to move, which we may be able to get for £150k, and as it is in a stamp duty relief zone (which is likely to change soon) we would not have to pay stamp duty....

Sounds like a good price for Cornwall - good luck