First time buyer - do I really need a broker?

Red-Squirrel_2

KolaKubsim wrote: »

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.

Nationwide aren't a bank.

ACG

I had a mortgage with nationwide go to offer 2 and a half days with nationwide just last week. It would have taken you longer than that to get an appointment with them.

The applicant actually found the same mortgage doing his searches but he would not have even had his application in with nationwide now had he not gone through a broker. As it stands his legals are well under way.

Aside from that, we can influence the final outcome of the mortgage. If a lender declines an application most people will accept that at face value, if we believe the case has merits or should have been accepted we can go back and fight your corner getting our account managers involved if needs be.

On top of that, finding you the cheapest deal is a small part of what we do. If you think our job is a price comparison service then your are very much mistaken. Any idiot (and im not referring to anyone in particular) can find the cheapest deal, its about ensuring they will accept you.

As I always say on here, if you find that useful great - use a broker. If you dont, go it alone.

I was doing some figures last week, I had 3 clients during 2014 I could not get a mortgage for after making an application. Considering the majority of my clients have adverse thats pretty good going in my books. I think brokers do improve your chances of being accepted, if the world and its wife could get a mortgage without an issue we would not have jobs. This forum is proof enough its not always straight forward even when you expect it to be.

ACG

Red-Squirrel wrote: »

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!

Im up north too. I do see plenty of people in late 20s early 30s but there has always been 1 of the couple who were older than me. This was the first time both were younger - devastated!

Last week my mate was taking the P about the forehead getting bigger. His hair is getting shorter as the grey is kicking in! Who would have thought everything starts going downhill at 30! It was only last year I was still raving! Now its like a pint at the local is the highlight.

KolaKubsim

ACG wrote: »

I had a mortgage with nationwide go to offer 2 and a half days with nationwide just last week. It would have taken you longer than that to get an appointment with them.

The applicant actually found the same mortgage doing his searches but he would not have even had his application in with nationwide now had he not gone through a broker. As it stands his legals are well under way.

Aside from that, we can influence the final outcome of the mortgage. If a lender declines an application most people will accept that at face value, if we believe the case has merits or should have been accepted we can go back and fight your corner getting our account managers involved if needs be.

On top of that, finding you the cheapest deal is a small part of what we do. If you think our job is a price comparison service then your are very much mistaken. Any idiot (and im not referring to anyone in particular) can find the cheapest deal, its about ensuring they will accept you.

As I always say on here, if you find that useful great - use a broker. If you dont, go it alone.

I was doing some figures last week, I had 3 clients during 2014 I could not get a mortgage for after making an application. Considering the majority of my clients have adverse thats pretty good going in my books. I think brokers do improve your chances of being accepted, if the world and its wife could get a mortgage without an issue we would not have jobs. This forum is proof enough its not always straight forward even when you expect it to be.

Thanks, that does actually make me feel better about my broker's services. Up to this point I've not really seen any real value. But I suppose if there was something he could do to affect the underwriter's decision should they decide we're not approved then it would be worth it.

But the other side of that I suppose is that if you're in a good position anyway and its a really straightforward application, and you're not in a crazy rush to get an appointment or submit your application then the broker's fee might be a waste of money?

Sorry Red-Squirrel, Nationwide are not a bank, you are correct!

ACG

Potentially yes.

But we always offer something - whether that be saving you time (you spend an hour with us and thats it), doing it with the bank you have to book a few hours to go through the dip and application and potentially sit on hold to call centres.
The other thing is that a lot of what we do is hand holding and problem solving - if things do go wrong.

Clients rarely hear about problems from me, theyre not paying me to hear about problems, theyre paying me to overcome them and save their stress.

You will never know if your case will be a problem until its too late (even straight forward cases have problems).

But your right, if you are happy to do it all yourself and overcome any issues that may arise then yes - why would you pay someone to do it?

I have a client who applied to a bank and was declined. I applied to the same bank a week after their decline and had the case offered - I think that sums up the difference a broker can make - its not like that on every case but as I said, we have our uses.

KolaKubsim

How do you manage to do it though? What makes your application to the same bank so different to the same couple going it alone?

ACG

Magic?
Experience maybe?

Rollinghills

ACG wrote: »

I had a mortgage with nationwide go to offer 2 and a half days with nationwide just last week. It would have taken you longer than that to get an appointment with them.

The applicant actually found the same mortgage doing his searches but he would not have even had his application in with nationwide now had he not gone through a broker. As it stands his legals are well under way.

We applied to Nationwide online, no need to make any appointments, it took about half an hour.

Not disputing the value of the MA though, we also did something non-standard which may be a risk to our application - the broker probably would have stopped us doing it, saving us the worry. Offer in 2 days is exceptional but surely you cannot promise this to an average client.

ACG

Online is non advised though - so you take your own risks on product/circumstances there and risk valuation fees etc? Again nothing against that, but it could cost you more in the long run.

I dont promise any client 2 days - I dont think anyone was more surprised than me it was that quick. But I dont do many mainstream mortgages, the majority of mine have adverse to some degree or another.

Rollinghills

ACG wrote: »

Online is non advised though - so you take your own risks on product/circumstances there and risk valuation fees etc? Again nothing against that, but it could cost you more in the long run.

Yes, of course online is not for everyone. I worked in financial services so I'm comfortable with it. We also have a strong application (I think) with 40% deposit. However, I wasn't aware about the sole applicant / gifted deposit from wife complication so that was an unforeseen risk the MA would have warned us about!