First time buyer - do I really need a broker?

martinsurrey

amnblog wrote: »

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.

So brokers can see into the future now?!?!

and if you mean that you would ask "Are you planning to have kids and move in the next 5 years?" and they havn't already considered it, before taking a 5 year fixed rate, you are dealing with morons, and they do need a special help.

Plans change and not even a broker can forsee that.

and with an £11k early repayment charge surly it would be better to port and top up with the same lender, until the fix is up?

amnblog

The move is not the problem Martin.


The underwriting criteria of the current Lender is the issue.


The client does not currently fit the existing Lender's criteria - hence cannot port and need to pay the fee to move.


A good broker would have pointed out that a future port on a five year product is subject to meeting lenders underwriting criteria at the time.


Not something the Lender made clear to the client when approaching the client direct to pull them on to the fixed rate in order to 'cut the broker out of the loop'.


(other brokers on here will be able to guess the Lender concerned as they swopped the product waiving the previous erp inside the erp period)


A little knowledge is a dangerous thing.


The moral of the story is that the broker would have cost less than £11K.

JPB123

amnblog wrote: »

The move is not the problem Martin.


The underwriting criteria of the current Lender is the issue.


The client does not currently fit the existing Lender's criteria - hence cannot port and need to pay the fee to move.


A good broker would have pointed out that a future port on a five year product is subject to meeting lenders underwriting criteria at the time.


Not something the Lender made clear to the client when approaching the client direct to pull them on to the fixed rate in order to 'cut the broker out of the loop'.


(other brokers on here will be able to guess the Lender concerned as they swopped the product waiving the previous erp inside the erp period)


A little knowledge is a dangerous thing.


The moral of the story is that the broker would have cost less than £11K.

It wouldn't be "The bank that likes to say Hola" by any chance?

I am an Independent Mortgage Adviser


You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice

Red-Squirrel_2

I've bought twice without a broker, both repos, both sales went through pretty much stress free in less than 28 days.

If your position is straightforward, your credit is spotless, you have a good deposit and feel confident in doing the research and dealing with it on your own, then there isn't much need for a broker.

If your situation is anything other than perfectly simple, or you don't feel confident dealing with all the chasing/paperwork/potential troubleshooting etc. yourself then a broker may well be a good decision.

ACG

Brokers have a role to play. Our job is not just a case of finding you a deal, thats a small portion of the job we do.

We are there to offer support and guidance along the way and if things go wrong - get them back on track.

If you see the value in that then go with a broker, if you dont then go it alone.

Also bare in mind that at the minute it can take you weeks to get an appointment with the bank (some banks are taking 3-4 weeks).

Just out of curiosity though, what do you class as expensive?

Gadge2011

We are currently working with a broker for our first purchase.

So far it's been a positive and smooth experience. In the space of less than two weeks we have had our application put forward, and the survey / valuation conducted yesterday.

All of our questions get answered almost immediately via telephone / email so I can't fault the service offered.

Purplesky_2

We worked with a broker. We'd have had to book a week off a month in advance to get all the rates and fees in a comparable timeframe from all the regular banks.

She put our offer forward in accordance with our instructions.
She secured an agreement in principle for us for WAY more than we would've got on our own and actually more than we needed.
She advised us on insurances.
She managed to grab us a deal with no upfront fees.
She did affordability checks with us 6 month before they were required.
She acted as liason and single point of contact between us, the estate agent and the solicitors we were using.
Queries about insurance and mortgages (hand-holding) were answered quickly and in plain english.
All for £500. Absolute Bargain.

Not all mortgage brokers are created equal though. I interviewed one over the phone who was rather aggressive and recommended a mortgage from Santander that I had already found. :huh:
I also interviewed one face-to-face who seemed perfectly lovely, until she realised that I was exactly 20 years younger than her. Then you could almost feel a chill in the air. :eek:
I still have no idea what that was about.

Decide if the other benefits are worth the price for you, then find one that you are comfortable with.

ACG

Purplesky wrote: »

I also interviewed one face-to-face who seemed perfectly lovely, until she realised that I was exactly 20 years younger than her. Then you could almost feel a chill in the air. :eek:

I went to see a couple on Saturday - first time I have ever met a couple who were younger than me - it made me feel old! (im 30).

I never seen my !!! over it though, we just had a laugh about it.

KolaKubsim

I vote for not bothering with a broker. You can find exactly the same products and rates online. Go into the bank you want and ask for a sit down with someone. You might have to have an interview where they will ask lots of questions and enter a whole host of info on you and copies of pay slips, bank statements, etc etc.

But at the end of the day, once that application is with the underwriters there's nothing any broker can do to speed it up or re-assure you its going to get approved.

I'm currently applying with Nationwide and I don't think the broker has done anything I couldn't do myself. He's just another middleman really. I'd probably have preferred dealing with the bank myself.

Red-Squirrel_2

ACG wrote: »

I went to see a couple on Saturday - first time I have ever met a couple who were younger than me - it made me feel old! (im 30).

I never seen my !!! over it though, we just had a laugh about it.

That surprises me, I know its different in London and the SE and people struggle to buy younger, but up here buying in your twenties doesn't seem particularly unusual, especially with two incomes.

Also, 30 is definitely not old! Despite what my new grey hairs and wrinkles might be trying to tell me!