FTB - Should we go to a Mortgage Advisor?

itsmitchelltime

Hi there,

First post (or one of the first and definitely first in a very long while) so apologies if I'm posting out of turn.

My wife and I are looking to soon start looking for a property, so we're not barking up the wrong tree with values we'll be looking at (I don't tend to trust the online calculators).

I'm arranging to meet a mortgage advisor to discuss further (and potentially even getting a AIP/DIP so we can go armed when we start looking).

Now here's our situation, as I say we are FTB with what will be somewhere between 5 and 8% deposit (8% will be top end when I include having to fork out for stamp duty - values round here are all over £150k for any flat, so not going to be able to get to the magic 10%).

Combined we earn over £60k (part is made up of bonus and stuff such as shift pay), have no loans, 2 cars on HP and a combined c.£8k cc debt. Our credit files are clear of any late payments and such for the past 6 years - so although not an ideal situation we're not in too bad a situation and I know some form of mortgage will be able to be placed.

I know I should get to the magic 10% but getting to this level has been hard work and with house prices rising locally we are constantly fighting a losing battle. So we both want to get on the ladder ASAP (I'm coming up to 35 so times running out for a decent length mortgage) and to stop paying rent in to somebody else's pocket.

So as we're going to be limited to what's in effect a 95% mortgage is it worthwhile still going to a broker, as aren't they all available 'off the high street?'.

The advisor I'm looking at charges £495 upon property purchase so any advice is free in the interim, I presume this will be in addition to any lenders product fee - I'll ask when I meet in any case.

If there's value added going through an advisor as opposed to going direct I'm willing to pay a premium - what are people's thoughts on this bearing in mind the limited 95% options?

I'm obviously going to ask normal questions at the first meeting such as whole of market etc are there any other's I need to ask?

Although not a local developers preferred advisor could he also 'qualify' us for the new build help to buy scheme?

Sorry for so many questions

ACG

95% mortgage with a deposit that matches the amount of debt you have... i dont like 95% mortgages at the best of times but it effectively looks like your deposit has come from a credit card.

Im sure it will till be possible to place this if everything else stacks up though.

Some deals are available on the high street, some through local building societies. Find what you can, take it to the broker and see if he can beat it. There is nothing wrong with doing that, atleast he/she then knows what theyre up against.

itsmitchelltime

ACG wrote: »

95% mortgage with a deposit that matches the amount of debt you have... i dont like 95% mortgages at the best of times but it effectively looks like your deposit has come from a credit card.

Im sure it will till be possible to place this if everything else stacks up though.

Some deals are available on the high street, some through local building societies. Find what you can, take it to the broker and see if he can beat it. There is nothing wrong with doing that, atleast he/she then knows what theyre up against.

Thanks for the advice, good point about the CC debt.

Deposit wise we have c.£20k saved. It sounds a lot of a deposit but it really isn't when locally there isn't much on the market sub £200k.

Yorkie1

itsmitchelltime wrote: »

Now here's our situation, as I say we are FTB with what will be somewhere between 5 and 8% deposit (8% will be top end when I include having to fork out for stamp duty - values round here are all over £150k for any flat, so not going to be able to get to the magic 10%).

It's probably just the way you've written it, but are you aware that stamp duty kicks in at £125K and not £150K?

Although not a local developers preferred advisor could he also 'qualify' us for the new build help to buy scheme?

Sorry for so many questions

Don't overlook the HTB mortgage guarantee scheme which was announced recently - don't know if you're suitable for it, but the new build scheme is not the only help on the market.

amnblog

The Help to Buy equity scheme may be the answer for you. Or perhaps a shared ownership.

[Deleted User]

Ditch the mortgage advisor, or find a fee-free 'whole of market' one. They get kick-back commission from the mortgage suppliers anyway.

Personally, i wouldn't bother with an advisor any-more unless I was having trouble finding a mainstream mortgage.