Using an IFA for mortages

dunstonh

I would have thought that a newer build house still under warranty would be a better investment and more attractive to a lender

Problem is that they lose about 10% the minute you move in. Plus, builders have a habit of overpricing them by adding in the extras into the house price. These cease to be a benefit on resale should the lender have to take possession.

Remember that a local broker is likely to be your best source for information. Not the bank or some internet/telephone service operating a factory line like service.

Fizzy11

As an admin for mortgage brokers who don't change fee but get paid via lender. From the moment the clients leave the office to the day they move in I hold their hands. Any fee that is charged by a Broker is not just to do a couple searches & complete a form.

I find it quite rude to assume that the brokers just do an initial interview & nothing else.

A lot of Brokers can't afford a 'me'.

rafhelp

Fizzy11 wrote: »

As an admin for mortgage brokers who don't change fee but get paid via lender. From the moment the clients leave the office to the day they move in I hold their hands. Any fee that is charged by a Broker is not just to do a couple searches & complete a form.

I find it quite rude to assume that the brokers just do an initial interview & nothing else.

A lot of Brokers can't afford a 'me'.

not case of assuming, that IS how it was, we never got any other callbacks or advice, then after they couldnt get us what we wanted they never returned calls or emails

Thrugelmir

rafhelp wrote: »

I would have thought that a newer build house still under warranty would be a better investment and more attractive to a lender

Lenders aren't investing in property. They lending money as a business.

New property is like new cars. People are happy to pay more than it's true worth.

addedvaluebob

You paid a broker to do something you could do yourself and cost you £350.

I thought this forum was about moneysaving but this thread seems to be more about mortgage brokers supporting the idea of paying money to mortgage brokers.

kingstreet

So far, the OP has seen a general broker and a lender direct and neither has actually figured out the property is still classed as a newbuild by many lenders, until the end of the discussion.

Sometimes it takes a specialist to identify issues like this early on. I presume at 80% both were trying to place the case with Halifax for some reason?

There are lenders who offer upto 90% on newbuild, but they will take a more experienced broker to select them.

addedvaluebob - in case you haven't noticed, the OP has paid nothing and has achieved nothing. He wants a mortgage and hasn't yet got one.

magpiecottage

addedvaluebob wrote: »

You paid a broker to do something you could do yourself and cost you £350.

I thought this forum was about moneysaving but this thread seems to be more about mortgage brokers supporting the idea of paying money to mortgage brokers.

For the OPs benefit, the fee a mortgage broker charges will go towards:

Sourcing software. This is a realtime online system which can change by the minute, not something on Google which may, or may not, be up to date. There is a subscription for this which is not cheap.

Compliance costs. This is not simply paying an annual fee to the FCA. They also have to pay for time spent submitting reports to it. They have to pay a levy to both the Financial Ombudsman Service (even if they do not use it) and the Financial Services Compensation Scheme (to pay for the mistakes of other advisers who have gone bust).

They have to pay for professional indemnity insurance.

They also have to pay for software to monitor compliance and spend a great deal of time using it (or pay for somebody else to do it).

Then you have all the other costs common to any business. You have to rent your premises, you have to insure them. You have to have employer's liability insurance. You have to maintain equipment. You have to heat and light your premises. You have cleaning costs. You have business rates. You have travel costs. You have staff salaries. You must factor in the cost of employer's national insurance on that, plus pension contributions (which are becoming compulsory).

These are all costs which an employee, such as a nursing home nurse, would not have to meet - but they are employer's costs.

On the other hand, if you were to consider how much it costs to keep somebody into a nursing home for a week and divide that by the amount of time the nurse actually spends attending to that particular resident it will be a lot higher than the actual hourly rate that the nurse is paid.

Again, though, you can save that money by nursing your elderly relation at home - getting them up, washing and dressing them, possibly in between getting your children up and off to school, fetching them from school, checking their homework, feeding them and packing them off to Scouts or Guides, bringing them back, parents' evenings and of course your own job.

So yes you can save money but you need to consider what it will cost you in terms of time and stress.

dunstonh

for reference, addedvaluebob supports the use of CMCs when posting in the reclaims section. So, you have to excuse his anti-adviser bias.

andyfromotley

rafhelp wrote: »

Well we went with the free broker L&C reccomended by Reallymoving.com. After 2 hours interview and then waiting around for 4 days+ we were then told the same lender would only do a minimum of 20% deposit.

We went to another high street bank who said they could provide one for 5 to 10% so we made appointment for interview and took time off work for it. We went down and 2 hours later they said the same thing, which is min 20% deposit only. The main reason being that its a relatively new house being bought from the builder. Although we were told the house is owned by a housing agency.

I would have thought that a newer build house still under warranty would be a better investment and more attractive to a lender

That £350 is looking rather good value now isn't it???

ACG

addedvaluebob wrote: »

You paid a broker to do something you could do yourself and cost you £350.

I thought this forum was about moneysaving but this thread seems to be more about mortgage brokers supporting the idea of paying money to mortgage brokers.

None of my posts have said he should use a broker and/or pay for that service. I have been completely unbiased and put both arguments across. Yes I have gone into more detail about the service a broker provides because that is something the OP does not appear to have been aware of.

Money saving does not just mean getting things for free. I could go and decorate my living room if I wanted, but it would probably take me 2-3 days to do it as im slow and useless at it. Lets assume I get £25 an hour through my job, that would be £400-600 or I could pay a decorator to come down and do it.

The decorator may do it in 1 or 2 days and charge £15 an hour, so thats £120-240 its cost me.

So getting a professional in has cost me £240 but had I used my own time it would have cost me £400 - therefore its a saving of £160.

It really does depend on how you look at things. You could argue I could do it over the weekend which is a valid argument but do I really want to be doing that on a day off? Personally I would rather pay someone £200 and have my weekend to myself, especially at the minute where im working 6 day weeks until 7-8pm at night.