Mortgage and Broker Advice Please!

skizz_b

Hi all, after some advice.

We are first time buyers, have a 15% deposit on a property of about £370k. Earning in the region of 80k between us, no debts (cleared credit cards last month so all empty) and the main question I have is whether we need the services of a broker to secure a mortgage.

I understand the good reasons for going the broker route, but as we are buying a new build we have been directed to Taylor Wimpey's brokers, Mortgages First. I have also been speaking to an independent broker who charges £500 for his services (MF are free of charge as Taylor Wimpey cover it).

So my main questions are should we go through the recommended broker? I wouldn't go through a recommended solicitor for sure but is there a conflict of interest going through MF? Do we even need the services of a broker?

On top of this my partner has recently started her job (6 weeks ago), it is a 2 year permanent fixed term contract which goes permanent at the end (we are Civil Servants, this is what all new employees go onto). She has been in the same line of work for 5 years before this though so it's not like she has flitted from career to career. Would this cause a problem in us getting a mortgage.

Thanks for any advice you can give and happy to answer further questions to clarify!

ACG

Personally I would say yes you should use a broker.

It might come across I am being biased however...
- Some lenders put a cap on income multiples of under 4x income - so with some lenders this may not fit.... although I imagine the majority will.
- Some lenders and FTC are a nightmare. They will want blood and make you jump through that many hoops it will wear you down. Also on top of that, unless the contract specifically states at the end of the 2 years she will be made permanent, quite a few are going to have issues.

- On top of that having a broker means they will do all of the work for you.

Have you already agreed a purchase price with the builders? If so, I dont see why there would be a reason not to use them. If you have not, then I would say use your own.

skizz_b

Thanks ACG.

We have agreed a price, so assuming they are "whole of market" no reason to not use them then?

Also we currently bank with Co-Op and Natwest, do we think those two in particular would have isseus with our situation? Worth investigating direct and seeing what they say? would we get a different rate that way compared with a broker?

ACG

I used to work for co-op, you will have a months wait before you can speak to one of their advisors (I still know a lot of people who work there and they can cope) even when you have had the appointment its taking around 10 working days to assess an application.

Affordability should be fine with both of those (but double check if you are doing it yourself). Im not sure about the FTC stance, it will come down to the question I asked earlier. If a permanent position in 2 years is not part of the contract then I cant see them offering on a mortgage.

skizz_b

I don't think it explicitly states that she gets a permanent position so may be best to go the broker route. It says "Permanent Fixed Term" which is a strange job title as in my experience I thought you were either permanent or fixed term. I think this caveat is where they say it states a Permanent contract is awarded at the end of the initial fixed term.

Having spoken to a couple of brokers initially the affordability isn't a problem but as you say the job role may be. Will see how it pans out.

Thanks for the advice!

skizz_b

Out of interest, what is defined as "Affordable"? Is there a certain amount you must have free per month after bills?

ACG

Usually yes, although its usually a case of playing around on lenders affordability calcualtors.

Affordability may not be an issue but if you can not get a lender to accept that contract as permanent - then it will be. I would definitely use a broker as you need to find a lender who will accept this contract which I think will be difficult, not impossible but there will be a load of calling around that needs to be done.