First Time Buyer - Large Deposit

kingstreet

Recouped? As in how do you get the money back, or how is the fee charged?

You pay for a service - advice and arrangement and that is provided.

You may be asked to pay the fee on application, issue of mortgage offer or completion. It varies.

Your broker's terms of business will tell you what is payable and when.

Commission may be payable to the broker by the lender in addition to the fee, but as has been pointed out, on a £40,000 mortgage placed with a high street lender at high street rates commission will be around £132.

In our case, we charge £250 on application and would receive the commission on top. Frankly, we'd struggle to make a profit on a case worth £382 gross as we offer only a face to face service in our area. We don't work remotely for reasons of fraud prevention.

If you are looking to appoint a broker, ask friends and relatives for a recommendation first. Failing that try https://www.unbiased.co.uk switching off the "sponsored ads only" option so you get a full list for your area.

Thrugelmir

sgx.saint wrote: »

The £60K gift is already in my account, so it is my money, so I don't expect that there would be any issue over a lender accepting it.

The source will matter for a number of reasons. The money already sitting in your account is neither here nor there. As proves nothing. The sum involved is sizable enough to warrant thorough due diligence.

kingstreet

sgx.saint wrote: »

The £60K gift is already in my account, so it is my money, so I don't expect that there would be any issue over a lender accepting it

The solicitor representing you and probably the mortgage lender as well, will be required to establish the source of these funds.

You may be expected to provide;-

a gifted deposit letter from the donor and;

evidence of the sum being transferred from the donor's account to yours to enable the solicitor to satisfy the money laundering requirements.

blahblahblah85

I personally wouldn't bother with a broker if you have a straight forward case I.e. large deposit, permanent, long term/secure position.
A lot of brokers frequent these forums so they will not give you an unbiased opinion.... At the end of the day most apply directly without trouble and your finances sound better than most I'd of thought, you will definitely need to prove where that £60k has come from.

Pete9501

I agree with Bla, straight forward case and since you bank with Nationwide they have some good deails for existing customers. Book an appointment with a local Nationwide Branch to discuss the options.

nubbins

blahblahblah85 wrote: »

I personally wouldn't bother with a broker if you have a straight forward case I.e. large deposit, permanent, long term/secure position.
A lot of brokers frequent these forums so they will not give you an unbiased opinion.... At the end of the day most apply directly without trouble and your finances sound better than most I'd of thought, the will definitely need to do if prove where that £60k has come from.

To be honest I found most of the brokers on here give unbiased opinions.
As for the deposit I think if it has been sitting in the OP's own savings account for 3 or 6 months then they could just say its savings depending on the lenders criteria, might be wrong,

sgx.saint

nubbins wrote: »

To be honest I found most of the brokers on here give unbiased opinions.
As for the deposit I think if it has been sitting in the OP's own savings account for 3 or 6 months then they could just say its savings depending on the lenders criteria, might be wrong,

No, it has been in for only two weeks, does this make any difference considering it has been gifted to me and is now essentially my money?

Thrugelmir

sgx.saint wrote: »

No, it has been in for only two weeks, does this make any difference considering it has been gifted to me and is now essentially my money?

The issue is that your word alone is not sufficient. While it may appear to be your money. It can still be reclaimed by creditors under the Insolvency Act 1985, or seized under Money Laundering regulations for example. The lender being powerless in such situations to stop due process.

blahblahblah85

I agree they give good advice but I do find that people are usually told to use a broker whatever their situation on here.
I got told to use a broker on these forums, similar situation to op, and not as positive if anything and we received our mortgage offer in about a week, no fuss.
If someone like the op couldn't successfully apply alone, there would be no hope for anyone!

Thrugelmir

blahblahblah85 wrote: »

I agree they give good advice but I do find that people are usually told to use a broker whatever their situation on here.

The average poster on this forum is not an average borrower. Majority of mortgage applicants have straightforward circumstances and/or are happy to do the legwork themselves. Personally I've never felt the need to use a broker. That's my choice. However I would always recommend seeking the advice of a good professional in any field if I considered it to be of benefit.

Brokers have come and gone on here. The better ones are longstanding, as reputation takes years to acquire. Seconds to demolish. As is the case in any industry.