FTB - 95% LTV, can a broker help?

HoplessCase

Hi there,

My partner and I are looking to get a mortgage in London as first time buyers (the same area we rent in already) and would need 95% LTV.

We looked at a few banks online and used their 'what could we lend you' tools and only 1 would lend us enough money. We have an appointment at the bank next week to confirm the mortgage amount but I've recently heard that there are a lot of 95% LTVs and with low rates so should we go to a broker?

We ruled out speaking to a broker as we didn't think there was much in the way of options to choose from (and I had no idea where to start!) but now I'm worried we'll miss out on a better deal.

Anyone have similar experience? We both work long hours so struggle to find time to do a lot of research so any advice to give us some direction would be appreciated.

Thanks

Paully232000

HoplessCase wrote: »

Hi there,

My partner and I are looking to get a mortgage in London as first time buyers (the same area we rent in already) and would need 95% LTV.

We looked at a few banks online and used their 'what could we lend you' tools and only 1 would lend us enough money. We have an appointment at the bank next week to confirm the mortgage amount but I've recently heard that there are a lot of 95% LTVs and with low rates so should we go to a broker?

We ruled out speaking to a broker as we didn't think there was much in the way of options to choose from (and I had no idea where to start!) but now I'm worried we'll miss out on a better deal.

Anyone have similar experience? We both work long hours so struggle to find time to do a lot of research so any advice to give us some direction would be appreciated.

Thanks

the very same reason we went with a broker.

System

If I was looking to buy with a low deposit I would most probably look to find a good broker to get me the best available throughout the market

Pixie5740

If you're looking at a 95% LTV then have you considered the Help to Buy Mortgage Guarantee scheme? Even so, speaking with a whole of market mortgage broken is a good shout especially as FTB.

benjus

The broker we used last year to get our mortgage was happy to visit us at home in the evening. He made one initial visit to gather general information, ID documents etc and show us some options, then another when we'd had an offer accepted to sign the application forms. Apart from that all communication was via email and telephone. Given that we both work full time in different areas it was certainly more convenient than going into a bank branch together for mortgage appointments.

HoplessCase

Thanks guys, that makes a lot of sense when you look at it that way. I guess it just seemed like the harder option as I don't really know where to start. I don't know anyone whose used a broker so nervous I won't know a good one from a bad one!

I'll try and find some threads on how to find a broker but if anyone has any useful links/suggestions please let me know.

Thanks!

Out,_Vile_Jelly

Ask around at work; word of mouth recommendation is always good for this kind of thing (solicitors also).

stator

I don't think there's any point. The number of 95% mortgages is very limited and if there's only one bank who will lend to you anyway go direct to them.
It really doesn't take as much effort to buy a house as some people think.

HoplessCase

Pixie5740 wrote: »

If you're looking at a 95% LTV then have you considered the Help to Buy Mortgage Guarantee scheme? Even so, speaking with a whole of market mortgage broken is a good shout especially as FTB.

Hey, thanks Pixie. The scheme is really more to encourage banks to lend so it doesn't make any difference to us whether it's HTB or not it, just means there might be more mortgages available than would have otherwise been the case.

The one that we've seen online does fall under this scheme but to us it's still just a regular mortgage with a bank if that makes sense?!

benjus

stator wrote: »

I don't think there's any point. The number of 95% mortgages is very limited and if there's only one bank who will lend to you anyway go direct to them.
It really doesn't take as much effort to buy a house as some people think.

It's not just about finding a mortgage though - there's the convenience aspect (see my earlier post). But more importantly, a good broker will guide the application through the process and know what to do and who to talk to if there are any delays or complications.

That said, I've never applied directly to a bank for a mortgage so it's hard to compare.

I don't know if it works as an analogy, but I have dealt with the same civil court both via a solicitor and directly. I was rather taken aback at how much work it is to deal with them directly. Court staff lose documents, don't return phone calls, don't know the correct procedures themselves... I'm beginning to see where my money was going when I did use a solicitor.

Pixie5740

HoplessCase wrote: »

Hey, thanks Pixie. The scheme is really more to encourage banks to lend so it doesn't make any difference to us whether it's HTB or not it, just means there might be more mortgages available than would have otherwise been the case.

Yes but the HTB scheme website gives you a list of lenders who, because of the scheme, are willing to offer 95% LTV mortgages.

HoplessCase wrote: »

The one that we've seen online does fall under this scheme but to us it's still just a regular mortgage with a bank if that makes sense?!

The HTB Mortgage Guarantee scheme is just like having a regular mortgage in that you don't have a loan to pay back to the government.

Applying directly to lenders is fine if you're a vanilla customer (low LTV, full time employment, no adverse credit) but anything more complex, or if you're a FTB, then a good mortgage broker can be worth their weight in gold. Not least because they should already have a good idea of which lenders will say yes to you before you even apply.