Can you help me find my perfect mortgage...

My_Fathers_Daughter

Just found the perfect house so need to put ourselves in the best possible position asap (other offers on the table)

Need to borrow £122k for a £150k house (£28k equity in current property - accepted offer yesterday).

We want to move in 2 years time so ideally will have no tie in after 2 years (if at all)

Would prefer something without a huge fee (wouldn't we all!)

Currently I have a discounted tracker which has been fine, we are not massively stretching ourselves but hubby does have his own company so we may be better with a fixed rate..


Finally, and probably most importantly at this moment in time...is that we need to move fast. The mortgage advisor that I have used before can't see me til Friday... I would love to get an approval in principle online if I could.

Can anybody help?

MortgageMamma

Its not possible to recommend a specific mortgage on here as the advisers on here do not know all of your circumstances. instead, could you not contact your previous adviser and ask if he/she could advise you over the telephone to save time?

Pls don't approach any lenders directly yourself, they will credit check you, and too many checks in a short space of time will damage your credit rating and lower your chance of obtaining a competitive mortgage

My_Fathers_Daughter

With the greatest respect...I really do not want to offend....but what does a mortgage advisor do other than tell you what the best rate they can find is? This usually coincides with who gives the most commission to them doesn't it?

Surely just finding a deal that you are happy with and applying direct is the best way to cut out the middle man?

Again - thanks for your advice and I am really not trying to offend - just trying to get to the bottom of why I shouldn't go to lenders direct...

MortgageMamma

My_Fathers_Daughter wrote: »

With the greatest respect...I really do not want to offend....but what does a mortgage advisor do other than tell you what the best rate they can find is? This usually coincides with who gives the most commission to them doesn't it?

Surely just finding a deal that you are happy with and applying direct is the best way to cut out the middle man?

Again - thanks for your advice and I am really not trying to offend - just trying to get to the bottom of why I shouldn't go to lenders direct...

I could spend ages answering your question about brokers, what they do, and how they can't recommend a product only for commission but I wont.

1. because I'm too busy helping people that really need it

2. Because if you still think that after having used your original broker then you are either plain disrespectful or a lost cause so I'll leave some other mug to answer you.

jay7_2

I think this has been explained on MSE web site somewhere. Mortgage brokers search the whole market and some of them (the bigger ones) even have special deals with lenders. You probably won't be able to go to every bank and building society in the UK - imagine the number of searches in your credit file! AFAIK all lenders do credit searches, brokers don't.

My_Fathers_Daughter

Apologies again - I am really not trying to offend - and I am none the wiser.

Surely it would be better to explain than take umbridge.

I can only apologise that I don't understand - I thought this was a place where users could come for friendly advice - not to be put down.

My_Fathers_Daughter

jay7 wrote: »

I think this has been explained on MSE web site somewhere. Mortgage brokers search the whole market and some of them (the bigger ones) even have special deals with lenders. You probably won't be able to go to every bank and building society in the UK - imagine the number of searches in your credit file! AFAIK all lenders do credit searches, brokers don't.

I must be terribly stupid today - I don't want to go to loads of places...just find a reasonable deal that fits my requirements and apply to one place for a mortgage...

Why on earth would I apply for more than one mortgage???

Mr_helpful

My_Fathers_Daughter wrote: »

With the greatest respect...I really do not want to offend....but what does a mortgage advisor do other than tell you what the best rate they can find is? This usually coincides with who gives the most commission to them doesn't it?
No it doesnt. If you are worried about this go to an independent who has to offer you a pure fees option ie a set fee with any commission rebated so it doesnt matter which lender he picks he gets the same amount.

Surely just finding a deal that you are happy with and applying direct is the best way to cut out the middle man?

Yes if you like doing all the work and not knowing what is really out there. many deals are 1) not available on the high st 2) Exclusivesthat are broker only

Again - thanks for your advice and I am really not trying to offend - just trying to get to the bottom of why I shouldn't go to lenders direct...

You seem to have a rather dim view of brokers but whilst there are good and bad there should be ones who can better the deal that you can find by yourself and if its a fees free broker why not take advantage. You dont get a better rate by going direct the commission is just spent on the lenders office and staff instead of the broker.

MortgageMamma

My_Fathers_Daughter wrote: »

Apologies again - I am really not trying to offend - and I am none the wiser.

Surely it would be better to explain than take umbridge.

I can only apologise that I don't understand - I thought this was a place where users could come for friendly advice - not to be put down.

It is a place to come for user friendly advice, but you are making a wild assumption stating that a broker will only recommend a product on the basis of the amount of commission that they woudl get. Whilst I can't say there arn't a couple of brokers who may still do this, they will not be in the industry wrong if the continue doing it.

In a nutshell a broker does the following:

Talks to you & assesses your circumstances (known as fact finding)

works out your affordability & Advises your maximum borrowing

sources the most appropriate mortgage for your needs from the range of products they have available (or all UK lenders, depending on whether they are truly whole of market or not)

Educates you about the product and how it best suits your needs

Advises you on the house buying process

Applies for the mortgage/does the paperwork on your behalf

Co-ordinates the mortgage to completion

Some brokers offer advice on insurances e.g. buildings and contents. life assurance, mortgage payment protection and income protection - this is usually a fully advice process which mimics the above

Some brokers offer you solicitors quotations

For those with straightforward circumstances a broker may not always be needed, although I would always advocate using one as you never know which good deals you could be missing (brokers sometimes have exclusive deals unavailable to direct members of the public)

For those than less than straightforward circumstances, particularly FTBS a broker is in my opinion essential and brings a lot of value and reassurance to the transaction.

A broker is not just someone who recommends a mortgage takes the commission and goes away. A good broker keeps your custom for life and is someone to lean on and answer all those niggly questions that a bank adviser or person in a call centre cannot.

We are highly regulated and have to answer to someone if our farts don't smell enough so there is little scope for mis-selling as there was prior to regulation in 2004. Unfortunately though there is a lot of negativity still surrounding the use of a broker, particularly in the older generation - todays FTBS generally have less distrust and mostly see the huge benefits tobe had in having someone on your side in the mortgage process.

I hope that clarifies even if it was a bit waffly. If you want to see what value a broker adds to your transaction then I challenge you to use one.

jay7_2

My_Fathers_Daughter wrote: »

Why on earth would I apply for more than one mortgage???

AFAIK banks do credit searches just to tell you how much they can lend you and what the conditions are. If you get 5 mortgage offers from 5 lenders, it will mean you will have 5 searches in your credit history which will play against you.

PS: But I might be wrong, I'm no expert.