Advice for friends looking for mortgage. Please help.

buel10

Thrugelmir wrote: »

An alternative approach is to save regularly with the financial institution you intend applying for a mortgage with. As there's no easier way of demonstrating the ability to manage your money and personal finances in a responsible manner.

What wonderful advice. Thank you Thrugelmir

Yorkie1

I believe phone contracts do show as credit agreements on the file. Others will confirm, though.

buel10

Hi,
Has anyone got anything else to add please?

buel10

ACG wrote: »

You gave them a lot of information for someone who has no mortgage.

I didn't really understand this comment.

wrote:

ANY company doing a credit check is negative to a certain extent - not just the persons bank. That extent differs from person to person - If its a one off credit check it wont have any real effect so dont worry about that. Its when you start getting to about 3 in any 6 month period..

That's my point though. For example, if a person was to ask his/her own bank for a mortgage quote, that's one search, then the person tries the next bank, that's two searches within a short period of time.

ACG

@Buel - For someone who has no mortgage and isnt in the industry, its a bit dangerous to be giving advice. Telling them to avoid their bank for example - not the best advice ever, a lot of our clients go with nationwide, halifax, hsbc etc and some of those clients bank with the same company.

As for martins advice - Charging a fee - I used to work at a brokers that would charge anywhere upto £2k for Mortgage advice (i didnt stay long, i didnt feel comfortable with clients being charged that amount) but on the otherhand you dont get many brokers not charging any fee. I charge a fee, people have the option of accepting that fee or not. But im upfront from the outset about it as i think its reasonable considering the amount of work that is involved.
Whole of Market - Im whole of Market for Mortgages, but im not for Insurance. There are pros and cons of each - eg you know the contracts better inside and out if you have less companies to deal with but the other side is that you have less deals to compare - so you cant be sure you are offering the best deal on the market.

Also, its not VITAL you get a copy of your credit file. If you know what bills you have and you know youve paid them and your also on the voters roll then its no really needed. It makes for an "interesting" read but i got my mortgage before i became an advisor without ever seeing my credit file and most of my clients are the same.

buel10

ACG wrote: »

Telling them to avoid their bank

I don't believe i said 'avoid'. I actually advised to be careful regarding the credit check. Hence my later comment regarding possibly two checks in a short period of time.

ACG wrote: »

If you know what bills you have and you know youve paid them and your also on the voters roll then its no really needed.

He isn't sure of either, hence my advice.

So for example: if he didn't check his credit report/that he was on the voters roll and he applied for credit and was refused on the grounds he had an error against his name OR that he wasn't on the voters roll, surely he would then rue the fact that he hadn't checked either beforehand?
Then he would have a check against his name and no credit. Whereas if he follows my advice, sorts out any irregularitiies first, then applies for credit he will possibly be in a position where he has credit with only one check on his name, as opposed to having no credit, a check against him and then needing to correct any irregularities/get on the voters roll and then make another application for credit.

Surely that example makes sense?
Surely it is better to do things the 'right' way rather than casually? Why risk it if all it takes is £2 and a few days wait?


Finally, thank you for the advice regarding charging and 'whole of market'. Very, very helpful.

ACG

I think what im getting at is that unless you are confident of what you are doing then your best bet is to just go straight to an advisor. Would you ask your mate how to rewire your home or change your clutch in a car? Chances are you would get a professional in (unless they were a professional) so why not just get professional advice rather than ask a mate.

Its usually the biggest purchase of anyones life, so it makes sense to do it properly.

Also you mentioned about them not knowing the purchase price of a property. Ive seen it countless times, people come in, they have fallen in love with a property and tell us they want a mortgage of say £200k despite being on maybe £20k....its unrealistic. The best route would be see how much you can borrow before you start looking this avoids anyone become upset that they cant get the house of their dreams.

EDIT:
From a personal perspective, im happy to spend an hour with clients, discussing what they can afford etc and leave them to find somewhere theyre happy with. Im investing time in order to get a client for the future. It doesnt cost, the only cost comes when the mortgage is applied for.

buel10

ACG wrote: »

I think what im getting at is that unless you are confident of what you are doing then your best bet is to just go straight to an advisor. Would you ask your mate how to rewire your home or change your clutch in a car? Chances are you would get a professional in (unless they were a professional) so why not just get professional advice rather than ask a mate.

I take your point. I must point out though that i did end my conversation with him with 'Go and see a Mortgage broker/advisor', as stated in my first post. That said, i stand by my advice regarding checking his credit record first being as it takes £2 and a wait of a few days.

ACG wrote: »

Its usually the biggest purchase of anyones life, so it makes sense to do it properly.

Brilliant.

ACG wrote: »

Also you mentioned about them not knowing the purchase price of a property. Ive seen it countless times, people come in, they have fallen in love with a property and tell us they want a mortgage of say £200k despite being on maybe £20k....its unrealistic. The best route would be see how much you can borrow before you start looking this avoids anyone become upset that they cant get the house of their dreams.

Again, brilliant. Thank you so much.

Wutang_2

Personally, I would take a look at the rates out there...pick the best...apply...and hope for the best.

Now, that is brilliant advice.

Thanks

bob_dob

So not doing the ground work and 'hoping for the best' is a brilliant idea?
Complete rubbish. And the same to those who thanked wutang for that idiotic post.