First time buyer - do I really need a broker?

steviep43

Hi all

First time buyer in need of a mortgage. Went to a broker who found the best 2 year fixed rate and 5 year fixed rate. I went online prior to our meeting and found the same two deals myself. Given how expensive a broker is, is it worth sticking with him to see us through our first time or am I better off saving £100s by doing it myself? Can I not just take the two deals and approach the lenders without going through him?

Thanks

Steve

martinsurrey

I didnt use a broker as a first time buyer, but I'm financially literate, self checked all my credit reports (which were spotless), and had a decent deposit and was looking at low income multiples.

The less of the above you can tick off, the more likely a broker will be useful.

steviep43

Thanks martinsurrey. Sounds like I'm in a similar position to you - spotless credit reports, decent deposit and am quite financially savvy. What I don't have any experience of (obviously) is the process and required paperwork etc. Is it worth having a broker just to see us through all of that?

martinsurrey

steviep43 wrote: »

Thanks martinsurrey. Sounds like I'm in a similar position to you - spotless credit reports, decent deposit and am quite financially savvy. What I don't have any experience of (obviously) is the process and required paperwork etc. Is it worth having a broker just to see us through all of that?

Mine was so easy, application went in, paperwork requested (certified copies of payslips and bank statements), offer was in the post 10 days after application.

Each to thier own, but I dont need a broker (yet, but who knows what might change).

GMS

How quickly can your chosen lender see/speak to you?

Marshall_Man

I was in the same boat as you - fairly good deposit, perfect credit rating etc...

I took the view that why I could do it myself for the cost of the broker (£500 I paid on completion) it was worth the advice. Remember it's probably the most important financial decision of your life and if its a 200K+ plus debt, less that 0.25% for the advice doesn't sound bad!

Jhoney_2

You could, but you.ll save yourself a bellyfull of stress and incertainty. For a few hundred pounds it is SO worth it - especially as a FTB - but not exclusively.

Sure you can wing it or come on here and ask questions all the way throughout the process (and you will get lots of great help wherever possible), but no-one here will know all your personal circumstances well enough for you to be able to rely upon their views alone.

I'm soon to be on my fourth purchase and I know what I intend to do.

comeandgo

Yes, I have arranged my own mortgage. Again, had large deposit, good income and no credit card or loans, no idea on credit score as never have looked at it. I did think that I'd never use anyone else again as it was so easy.

pinkteapot

Another vote for DIYing it, if your case is straightforward.

Are you (and partner if applicable) in permanent (not temp/contract) jobs and not on a probationary period?

If yes, in addition to yes to all the questions above, go for it.

I've DIY applied for mortgages twice before, and once used a broker. We used a broker when my job was a contract, so finding lenders who would lend was harder.

When straightforward and not near your borrowing limits, mortgage applications are easy to fill in.

We did our DIY ones on the phone both times. Application took around half an hour. Then we had to send in payslips and bank statements. Nowadays you may then have the affordability interview thing. We recently remortgaged to HSBC and they didn't bother interviewing us as we were borrowing a low LTV.

One comment - you mentioned approaching both lenders. Don't apply for two mortgages. Pick one and apply for it.

If you do it yourself, come back and let us know how you get on (if/when your application gets approved) - might be useful for future reference for other FTBs who are wondering the same thing.

kingstreet

steviep43 wrote: »

Given how expensive a broker is

So just how expensive is a broker then?

amnblog

Not as expensive as getting it wrong.


Like our enquirer who took a five year fixed rate direct with a Lender rather than talking to a broker.


Two kids and a new business later - the need for more space is going to cause a £11K early redemption penalty bill.