FTB - broker or not?

HereBeDragons_2

I'm a FTB (age 39) and looking at applying for a mortgage. On paper I think I'm pretty good: steady long-term job, no dependents, clean credit history. I have a deposit of £77,500 and am looking to purchase a property for up to £240,000. Salary approx £39,000. I have no loans and my 2 credit cards have a combined limit of £9700 which I am never remotely near utilising - currently the combined balance is just over £500 and they are always paid off in full. Other available credit is £300 in overdrafts, which I never use. One credit card was opened 3 months ago (I only did it to get regular cashback on household spending), and I'm hoping my total available credit wouldn't be considered too risky from a lender's perspective given my income.

Provided nothing unexpected shows up on my credit reports (all good a year ago, awaiting new copies), First Direct's standard lifetime tracker mortgage has caught my eye - it ticks all my boxes such as unlimited overpayments, portability, and no early repayment charge. I already have a First Direct current account into which my salary is paid so I have banking history with them. The tracker rate is 1.49% above BOE, and I've 'stress-tested' myself on paper and could keep my head above water comfortably at 7% interest (with still half my net income available after the monthly mortgage payment). The fees seem ok and for me the ability to overpay unlimited amounts outweighs the financial risk of interest rate rises on this tracker. I plan to overpay as much as I can.

I'm trying to decide whether to still approach a broker - having read a lot of the invaluable broker contributions on here I'm well aware that unexpected issues can crop up with even the most straightforward applications, and I am also mindful that as a FTB if I apply to FD I will be on my own re surveys, valuations etc. I'm sure with a bit more research I could probably avoid most pitfalls but it's still a little daunting as a FTB and I know a broker can be worth their weight in gold with advice on those aspects of the homebuying process, particularly if a problem causes an application to stall. However I don't want to waste a broker's time if there's nothing in it for them and they can't better the FD deal, nor do I want to spend money unnecessarily.

I'm thinking I could apply to FD and if I get rejected go for another product via a broker, though I'm uneasy about having a fresh credit check added to my file in that scenario, given I opened a new credit card only a few months ago. Would I be wise to still approach a broker in my circumstances - presumably I could at least discuss the FD mortgage suitability with them? I have no idea if this is a daft thought, but are there any brokers who know enough about FD criteria & applications to be able to look at your circumstances and help you through the whole process with FD for a reasonable fee - I know a broker couldn't deal direct with FD on my behalf but being able to call on expert advice if there were problems along the way could be worth a lot of peace of mind.

Many thanks

ACG

If your comfortable doing the work, go with FD. Im sure there will still be options should they decline you.
If you want the hand holding more so than the FD deal then go with a broker.

It all seems fairly straight forward but that obviously doesnt mean it will be.

amnblog

If you want the advice and support of a broker, and you are smart to see the value in it, you can come to an arrangement should you decide to use First Direct.

You can either pay the broker a fee for their support and advice (in our case we would charge £299) for such a service.

If you took steps to protect yourself against, unemployment, loss of income, critical illness, or death, and did that business via the broker, the commission on that purchase of insurance would cover the brokers time.

HereBeDragons_2

amnblog wrote: »

If you want the advice and support of a broker, and you are smart to see the value in it, you can come to an arrangement should you decide to use First Direct.

You can either pay the broker a fee for their support and advice (in our case we would charge £299) for such a service.

If you took steps to protect yourself against, unemployment, loss of income, critical illness, or death, and did that business via the broker, the commission on that purchase of insurance would cover the brokers time.

Ah, that's well worth knowing. Thank you. Out of interest, how would the fee you would charge for broker support compare with the fee you would normally charge to manage an application on behalf of a client? (Or should I PM you to ask that?)

HereBeDragons_2

ACG wrote: »

If your comfortable doing the work, go with FD. Im sure there will still be options should they decline you.
If you want the hand holding more so than the FD deal then go with a broker.

It all seems fairly straight forward but that obviously doesnt mean it will be.

Thanks ACG, I guess I'm after the best of both worlds!

amnblog's reply shows there are options for different types of broker support, so I will look into this. I can't tell you how useful it is to read the contributions brokers make, (the broker blues thread is particularly interesting!) so thank you for your input.

amnblog

HereBeDragons wrote: »

Ah, that's well worth knowing. Thank you. Out of interest, how would the fee you would charge for broker support compare with the fee you would normally charge to manage an application on behalf of a client? (Or should I PM you to ask that?)

PM please - for that response.

Loopy28

I used a broker recently after originally being dead against it. Mainly because I was porting my mortgage and I felt it would be £350 down the drain when I could go direct for free. When I did my mortgage 5 yrs ago I went direct and it was easy but that was before the MMR.

Then I spoke to the lender, found out there would be two separate telephone interviews estimated at 2 hrs each and they would be going through all my future plans, finances etc before making a decision and the whole thing stressed me out.

So I engaged a broker and it was as simple as two meetings, one for the AIP and another for the full application and submitting my paperwork. Easy as that and it was all accepted, plus I knew I had the back up of them processing with another lender if it all went pear shaped with the porting.

AnnieBox

I am a first time buyer too and personally I have found my broker to be worth her weight in gold. I am more than happy to pay her £299 fee for her service. The help, advice and reassurance she has given me is fantastic, also she had really good deals on mortgages which of course is important too.

Personally I would recommend anyone to a broker.

hounslowfish

I'd strongly recommend FD. I have been over the moon with their service. Go for it!

A word to the wise. FD is currently offering extremely good fee-free "loyalty" lifetime tracker rates to existing customers. It might be worth taking a fee free lifetime tracker at a higher rate now and switching once you become eligible rather than paying a fee for the lower rate now.

HereBeDragons_2

Loopy28 wrote: »

I used a broker recently after originally being dead against it. Mainly because I was porting my mortgage and I felt it would be £350 down the drain when I could go direct for free. When I did my mortgage 5 yrs ago I went direct and it was easy but that was before the MMR.

Then I spoke to the lender, found out there would be two separate telephone interviews estimated at 2 hrs each and they would be going through all my future plans, finances etc before making a decision and the whole thing stressed me out.

So I engaged a broker and it was as simple as two meetings, one for the AIP and another for the full application and submitting my paperwork. Easy as that and it was all accepted, plus I knew I had the back up of them processing with another lender if it all went pear shaped with the porting.

Yes, I'm well aware that these are the benefits of using a broker (and more besides) - seems like a no-brainer to me even if you're the sort who is good at dealing with finances; it's just that First Direct don't deal with brokers so I need to find a 'best of both worlds' solution if I do want to go with FD - which it looks like there is anyway. Thank you.

HereBeDragons_2

AnnieBox wrote: »

I am a first time buyer too and personally I have found my broker to be worth her weight in gold. I am more than happy to pay her £299 fee for her service. The help, advice and reassurance she has given me is fantastic, also she had really good deals on mortgages which of course is important too.

Personally I would recommend anyone to a broker.

Yes, I can absolutely see how they are well worth their fees. Thanks.