mortgage supplied by a broker

scotsbhoy1

First off ill tell you about my situation.I have saved up money for 10% deposit on a £63,000 house in glasgow with money left for fees and what not.I'm 21 and a first time buyer so im pretty new to all of this but im not an idiot either.Now my uncle put me in touch of a broker he uses (hes a property developer) and i knew i would be paying a fee for the brokers services which i was happy to do because im working away at the moment and letting the broker look for a mortgage took a weight off my shoulder.he got me a deal with abbey for a 5year fixed at 5.49 % which i thought was pretty reasonable so i got a mortgage promise with abbey.however after shopping around , i found hsbc offering a 5 year fixed at 4.89%.

i understand some mortgage companies dont deal with brokers (like hsbc) so what im asking is:


is there anywhere else that i should look at for a mortgage , like hsbc dont deal with brokers?

will it be easier to get all the mortgage dealings completed with a broker?

and..

if i dont go with the mortgage deal the broker has offered, will i still have to pay the brokers fee?


thanks

opinions4u

HSBC cherry pick who they lend to.

They decline a lot of applicants asking for 90% LTV.

scotsbhoy1

opinions4u wrote: »

HSBC cherry pick who they lend to.

They decline a lot of applicants asking for 90% LTV.

well i have excellent credit but the problem is,since im young i dont have a very long excellent credit history and im guessing hsbc are the types that dont tend to lend to a young single guy

ACG

I have never dealt with HSBC so i cant say what theyre like, but if theyre hard to get through then it depends on your credit file really - if you know its good then tell the broker, hes acting on your behalf and your paying him.

MoneyMagic01273

opinions4u wrote: »

HSBC cherry pick who they lend to.

They decline a lot of applicants asking for 90% LTV.

Agreed - wish I'd known this a few days ago.

Partner and I obtainined an agreement in principle no problems, for a 90ish% LTV (£25k deposit - £215k mortgage) - good household income (£75k pa), not even a single missed payment on our credit files, no loans, a couple of credit cards with very modest limits that are rarely used and always paid off in full each month, registerd on the electoral role etc. I don't know how we could have been in any better scenario yet we were still mysteriously decline during the full application "based on HSBCs scoring model".

Now looking for a lender with a slightly more relaxed criteria.. ho hum. Anyway - sorry, don't want to derail...

scotsbhoy1

after some research it seems the hsbc mortgage at 90% LTV is too good to be true , i have not came across anyone yet that has succesfully had a 90% LTV mortgage from hsbc.quite rediculous if you ask me and every other deal is between 5.39% to 5.59% for 90% LTv so i guess its just down to who is charging fees.


will having a broker on my side increase the chance of succesfully getting accepted for a mortgage?

MoneyMagic01273

scotsbhoy1 wrote: »

after some research it seems the hsbc mortgage at 90% LTV is too good to be true , i have not came across anyone yet that has succesfully had a 90% LTV mortgage from hsbc.quite rediculous if you ask me and every other deal is between 5.39% to 5.59% for 90% LTv so i guess its just down to who is charging fees.


will having a broker on my side increase the chance of succesfully getting accepted for a mortgage?

The problem is the last broker I spoke to admitted that the majority of the best rates available right now are available for deal-direct customers only... not through brokers.

So going through a broker may increase your chances of approval(*may* - they cannot garuantee anything - they might just have some experience around which lenders have the best approval rates and most relaxed criteria) but its unlikely to be the best deal....