How to find a good broker?

shaniannie

We've decided that we're going to wait out the next 6-12 months, pay off every single CC in that time (and wait the ridiculously long time it takes the CRAs to update their files once credit accounts have been settled in full!) and hopefully save another few k's to make sure we're under what seems to be the elusive 85% LTV and get ourselves in a much better financial position before we put our house on the market.

Although *I* know we can afford what we need, and we have a squeaky clean credit record, we seem to be faced with a "computer says no" attitude, and the "advisors" we've seen couldn't really have helped less.

We've seen 2 mortgage advisors - one based at an EA (although not employed by the EA, I think he was Countrywide) and one a Barclays advisor. The EA broker, although a seemingly nice fella, wasn't very much help on the advice front and has basically not kept us informed of anything and not returned calls when he's promised to - culminating in us getting to speak to him the other day, and him telling us "oh I didn't think you were bothered" (yeah, that's why we signed forms for credit searches!!!). I knew the meeting with the Barclays advisor wasn't going to go well, when he thought 97.5k - 12.5k was 87k.... and then went on to tell us he's only been back at work since "last week" after being off since November and he didn't know the new system... and then proceeding to fill in the application incorrectly, submitting it, not being able to edit it and having to call the underwriters to do so, which would take over a week to do, as he was then off work for the rest of the week....

Sheesh.

So my question.

When the time comes for us to start this process again, how do we find a good broker?

We live in rural north Wales, so they will be few and far between anyway, so I want to minimise the chances of us finding another broker who will do more harm than good!

I know word of mouth is probably the top tip here, but we simply know very few people who have moved recently.

How do we sort the good uns from the bad uns before we waste our time and theirs going through hours of meetings?

Can any brokers give suggestions of questions to ask a broker that would help us determine if they're going to be helpful?

Thanks in advance for any replies

Horseunderwater

Try london and country mortgage brokers - they are an on line and phone service they are unbiased and will find you the right deal that you can afford. If you give them your current circumstances now and still find it problematic, they may have suggestions as to which CC etc to pay off first.

shaniannie

We've got a pretty complicated app, being that we currently have a shared equity mortgage, but it was taken out 8 years ago, and I can't find any shared equity schemes comparable to it today. How advisable would it be to be a phone/internet client with relatively complicated circumstances?

kingstreet

An adviser in a Countrywide agent's office works for Countrywide. Their mortgage service;-

- has a small panel of lenders and isn't whole market
- charges clients a fee and receives commission from lenders
- uses lenders who supply survey work to their survey arm
- pushes its expensive in-house conveyancing service
- has a single tie for life and health insurance products
- has a single tie for "general" insurances.

I can't imagine what attraction there could be for a potential customer...

... and if you've spoken to Barclays, all you are going to be told about is Barclays products and chances are, if Barclays don't offer it, their employee will think it doesn't exist, or no-one does it!

It isn't clear from your post what you are actually applying for now, if you are not planning to do anything for upto a year?

Shared equity isn't particularly complicated. When you sell, you'll pay off the mortgage and the second charge and any money left over will be put towards your next purchase.

If you want to know about current shared equity options, you might want to look at the Firstbuy website;-

http://www.firstbuyscheme.org.uk/

and look at developers and Housing Associations. Typically, you'll need 10% deposit on top of the second charge, although there is one lender which will lend with only 5% deposit on SE cases.

My firm is on the panel of Orbit, the Homebuy Agent responsible for SO and SE in the West Midlands and East of England and it may be worthwhile you establishing who does that in your area to see their broker panel.

The Welsh Government site is probably the place to start, as is;-

http://www.nwha.org.uk/

the website of a HA in North Wales.

I'm pretty sure there are SE schemes operating in Wales as the Principality BS pops up regularly on my searches, although I can't use them for English stuff!

shaniannie

I appreciate your input Kingstreet, thanks

To be honest, we kind of got "dragged in" to seeing the broker at the EA whilst enquiring about a house for sale. We also went to see the Barclays advisor as that is who arranged our current mortgage 8 years ago (after a broker had caused us almost 6 weeks delay as he didn't relay to NR at the time that DH's wage was partly made up of bonus - but Barclays gave him a pre-approved mortgage limit).

So now 2 searches have been done on our credit file, and we're under the impression that further searches wouldn't look too good.

Under our current SE scheme, we own 50%, the HA (Tai Eryri) own the other 50%. The scheme is different to others today in that the only condition on the equity loan is that we repay 50% of the sale price when the house sells. No time limits, no interest - in fact, no contact whatsoever since we got the "green light" to go ahead with the purchase in July/August 2004. Upon sale, we will be allowed to port their equity to another house (no real restrictions, other than a max purchase price) as long as their % stays between 30-50% in 5% increments. The HA weren't very helpful when we spoke to them to be honest. Her only "advice" as far as getting a mortgage was to tell us "some companies don't like SE, you'll have to find one that does". Helpful, eh?

We will be pushing the numbers as far as affordability calculators go if we do move.

We have recently done a balance transfer from one credit card (£3.7k) which inevitably has flagged up as an undeclared commitment. We also bought a car through Ford Options (3 year term, hindsight is a wonderful thing but we hadn't considered moving at that point and decided to use the cash we had to pay off the CC as a deposit on the car and transferring CC balance to 0% apr costing us £100 balance transfer fee) in January, therefore the £196 per month payment but over £12k outstanding (GFMV on the car covers the balance) isn't doing our credit history much favours (recently opened credit account). We have also just paid off £500 from 2 other credit commitments and cleared them, but that isn't showing on credit reports as yet. We've never missed a single payment on anything, though.

Also, we have 3 kids and currently our income is my husband's wages (salaried position, almost 10 years employed with the same company), and child benefit and tax credits. As I said, we were pushing the numbers as far as affordability. The thing is, I've known for a few years I could walk into a full time job if I wanted to (declined as the kids are still young), but I'm contemplating starting in the next few weeks on just 10 hours a week and increasing the hours as I learn to juggle home, kids and work, which would of course boost our income and affordability.

Also, we have roughly £13k equity in our current house, and, for the houses we've seen, we're sitting on 86-87% LTV of our (future)share, so paying a little more off the mortgage and saving a little more to get the LTV below 85% would be helpful!

So to sum up, the reasons for waiting 6-12 months is that "on paper" right now our debt is higher than the reality, and the advisors haven't been helpful in advising us the best route to take! Plus, the CC's will be clear, and it will be reflected on the credit reports that they are, we won't have any "recent applications" for credit, we'll have a lower LTV, and, perhaps more income.

Plus, also, we're a little disillusioned by the whole process right now as we thought we were in a good financial position (much better than we were 8 years ago!) but the "computer says no".

Incidentally, how long will I have to have been working for the income to be taken into account, and for a "new job" not to be seen as a negative, credit scoring-wise?

*ETA: We *want* to move now, as we've seen the house we really really really want... but we just seem to have so many obstacles in our way, and no one that can really help us, so we're doing the only seemingly logical thing, and waiting to be in a better financial position...

bigadaj

Just seems to me this is more of a moan than a request for constructive advice.

You make a big play of stating that no one will lend you the money you think you are entitled to, but still have limited equity and a fair chunk of debt, life is about choices and prioritising.

Your decision to spend on what you want but don't then complain too much when lenders don't want to lend you virtually the who,e amount for part of a house.

shaniannie

To be honest, I'm just after a definitive "you could get X amount based on your current circumstances", but we're just being messed around.

You know absolutely nothing about our circumstances so to insinuate that we're reckless with money is extremely judgemental and insulting. I don't think I'm entitled to anything, I simply said I know we can afford it.

I could accept it if we were told, no you can't have that amount of money unless you (earned X amount more money / paid Y debt off / jumped through Z hoop) but we've just been given no answers.

I was after some advice, be it what I wanted to hear or not, of what we should/could/can't do.

It seemed to me your whole post was to have a moan, and not to offer constructive advice.

Crashandburn

shaniannie wrote: »

So to sum up, the reasons for waiting 6-12 months is that "on paper" right now our debt is higher than the reality, and the advisors haven't been helpful in advising us the best route to take! Plus, the CC's will be clear, and it will be reflected on the credit reports that they are, we won't have any "recent applications" for credit, we'll have a lower LTV, and, perhaps more income.

Incidentally, how long will I have to have been working for the income to be taken into account, and for a "new job" not to be seen as a negative, credit scoring-wise?

*ETA: We *want* to move now, as we've seen the house we really really really want... but we just seem to have so many obstacles in our way, and no one that can really help us, so we're doing the only seemingly logical thing, and waiting to be in a better financial position...

I would block Rightmove from your router if I were you!!

CRAs only take a month to update so regularly subscribe to your report and if not updated/settled, then ring the companies involved and tell them to correct it ASAP.

Is it you thats said you will get things in order in 6-12 months or the broker. The reason for asking is that if someone comes in and says 'I'm looking to do this in 12 months', any person in any industry is going to lose interest. Sorry but that's more a reality of the current work environment.

Difficult for people to give specific advice on the basis we don't have all the figures from income and benefits but if lenders are seeing a high level of debt, then it reduces the ability for them to recommend an affordable solution.

Skip looking at the properties if I were you.

Also sounds like you went through the whole process of an agreement with the first adviser and it was declined. Correct? I can understand that the dream home is a driving factor, but if its going to make things unaffordable in the future because you've pushed yourselves too hard to achieve it, then the planning for 12 months can only be a good thing.

Some lenders will allow you to apply for a mortgage with a new job and even be in a probational period but don't try and do this to satisfy the mortgage company ie start a week before the application goes in. If you feel and extra income will help pay off the debts and reduce the current mortgage, I would get onto this ASAP and so length of service won't be an issue by the time you apply later in the year.

Good luck.

kingstreet

Is your property on the market and do you have a buyer?

If not, I endorse your plan to stay put for a while. Although some lenders will entertain an application from someone in a probationary period, the most "points" are scored by those in employment for three years or longer.

I suggest you have a play around with a lender's affordability calculator, such as this one from Halifax;-

http://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx

Use the different credit score examples, A, B & C to gauge the different maximum loans. Enter your tax credits and child benefit in the "Other Income" category, under "Child Tax Credits" as a portion of this can be taken into account.

shaniannie

Crashandburn wrote: »

I would block Rightmove from your router if I were you!!

CRAs only take a month to update so regularly subscribe to your report and if not updated/settled, then ring the companies involved and tell them to correct it ASAP.

Is it you thats said you will get things in order in 6-12 months or the broker. The reason for asking is that if someone comes in and says 'I'm looking to do this in 12 months', any person in any industry is going to lose interest. Sorry but that's more a reality of the current work environment.

Difficult for people to give specific advice on the basis we don't have all the figures from income and benefits but if lenders are seeing a high level of debt, then it reduces the ability for them to recommend an affordable solution.

Skip looking at the properties if I were you.

Also sounds like you went through the whole process of an agreement with the first adviser and it was declined. Correct? I can understand that the dream home is a driving factor, but if its going to make things unaffordable in the future because you've pushed yourselves too hard to achieve it, then the planning for 12 months can only be a good thing.

Some lenders will allow you to apply for a mortgage with a new job and even be in a probational period but don't try and do this to satisfy the mortgage company ie start a week before the application goes in. If you feel and extra income will help pay off the debts and reduce the current mortgage, I would get onto this ASAP and so length of service won't be an issue by the time you apply later in the year.

Good luck.

lol I think I may have a word with hubby to sort the router;)

On our CRA it seems most accounts were updated 10/2, so I'm waiting until 10/3 to see if they will show as updated with the latest figures and cleared balances etc


It is us that has now said we'll possibly wait 6-12 months, after seeing the 2 advisors. It's their responses and our further research into our CRA files etc that has prompted us into thinking that may be the best route. We went to them for advice needing a DIP asap before we passed the DIP onto the HA, to get the go ahead to move, so we could put our house on the market. (Phew, that was a long sentence!)

I totally understand your comment on someone losing interest in it, but we did go to see them needing the DIP to get things moving asap - we were completely upfront in saying that if we can't get a minimum of X amount on mortgage then we wouldn't be proceeding - we simply needed to know if it was viable.

With the first lender, we ended up trying to get a DIP with Nationwide. This was at the broker's reccomendation, when he knew all the income/outgoings etc. As it was shared equity he said he had to make a paper application. We got in touch with him a week later, and he said "there's a problem with undisclosed commitments" (this is where I'm guessing the balance transfer was causing problems - on our CRA file Card 1 is showing as £3700, but Card 2 is showing as £0, but what we told him, and the reality right now is Card 1 is £0 and Card 2 is £3700), and he said they have come back with a lending figure of around £50k (£30k less than we needed). He said leave it with me I'll see what I can sort out - but has then disappeared off the radar. We've tried to get in touch and to go and see him to no avail. I don't *actually* know if it came back as a decline. What I do know is that the credit search went through for £76,200.

***Update, actually just logged in to experian, and both credit cards are now showing as having a £3700 balance, which means we're using more of our revolving credit... If Barclaycard don't update with £0 balance within the next couple of days I will call them.

I totally understand affordability checks need to be made. We're looking at increasing our mortgage payments by roughly £200 per month.

It's a long and complicated story (isn't it always!) but we're in a much better financial position now than we were 12 months ago, and have £700 a month left after all bills and living expenses are paid (I love my spreadsheets!) so increasing our mortgage by £200 per month will still leave us +£500 per month.

As far as me working - it's something that's been on the cards for a while, and now my youngest is 6 and in full time school I actually need something to do anyway. The hours would be totally flexible and up to me, and it's a guaranteed permanent job.

So yeah, we were intending on doing this "now", but after the last month or so, realise we'd probably be in a less complicated, stable, clean-slate position in 6-12 months, and as my original post, wanted to start thinking ahead, and work out how to find a good broker who would work with us

I really appreciate your input, and thanks for responding

shaniannie

kingstreet wrote: »

Is your property on the market and do you have a buyer?

If not, I endorse your plan to stay put for a while. Although some lenders will entertain an application from someone in a probationary period, the most "points" are scored by those in employment for three years or longer.

I suggest you have a play around with a lender's affordability calculator, such as this one from Halifax;-

http://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx

Use the different credit score examples, A, B & C to gauge the different maximum loans. Enter your tax credits and child benefit in the "Other Income" category, under "Child Tax Credits" as a portion of this can be taken into account.

Thank you for your input

Our house isn't currently on the market, no, although we have had estage agents round for valuations. We wanted to get the DIP before proceeding, to see if what we wanted to achieve was viable.

There won't be a "probationary" period with work - without going on about the details, it's a guaranteed permanent position so I don't know if that would make a difference.

I've played with the Halifax calculator. It seems they don't count Child Benefit as seperate income so I added it in with child tax credit.

Choosing A/B/C doesn't change the amount, strangely enough!

However, with our current income, it says £29,830 (:eek: our current mortgage was for £46k initially with £39.5k outstanding!)

But, if I add in me earning just £3,250 (and adjust tax credits down accordingly) the figure jumps to £94,660.

That's a MASSIVE difference for only £3k a year extra income!

Surely, that can't be right?