question for the brokers or anyone who had used one

pamelab21

We are looking to move and have 2 years left of our fixed rate so were going to stick with our existing lender and apply for more as mortgage is portable.
The cost of childcare is going against us but that is due to drop soon (I know this will not be taken into account) we have seen a house that we like however it would be pushing our limits with our existing lender.
A lot of people on here recommend going with a broker.
Now does that mean we should find one as they could get us more money with someone else despite the childcare, can they get us good rates OR does getting more money from a lender a broker can go through mean a higher interest rate? Or can they get the same good deals.
Basically our joint income is £34.5k, no HP, loans or balances on credit cards, we do pay £400 per month childcare and do get some help through tax credits and we have child benefit.
We are looking to buy at 245k but borrow 128k on mortgage so good LTV.
Advice please.

ACG

With any lender the maximum you can lend is the maximum you can lend. Sometimes brokers may enter information differently which might result in you being able to lend more... for instance, the extra borrowing you may do over a longer period allowing you to get that little extra?

If the lender in question will not give you what you need then you would presumably need to look at other lenders but that then incurs ERCs.

Sometimes some of the more flexible lenders charge higher rates but not always.

If you have confirmation the childcare will stop within a certain period the lender may be willing to accept it. ie kids start school in spetember for instance may mean that the lender ignores it as there is only 5 months remaining and probably only 3-4 months by the time you actually complete.

There is not enough info on your post to give a more accurate answer but hopefully the above may give you some ideas?

amnblog

Would you fix your car if you did not know how?


Would you fix your roof, or your boiler with half a clue how to do it?


A broker is the right course of action for you.

pamelab21

Thanks for that, we have 49k o/s so our repayment fee works out to 1470 (just realised that we are 2 years into a 5 year so its 3 years we have left so 3%)
the nursery fees will drop in Aug 2015 to the £200 mark (gets a funded place)and then stop in Aug 2016 when they go to school.
we both have excellent credit ratings, never missed a payment on anything we have had in the past or on mortgages we have had.
I have also been trying to watch spending in the run up to applying although we are not frivolous with anything.

pamelab21

amnblog wrote: »

Would you fix your car if you did not know how?


Would you fix your roof, or your boiler with half a clue how to do it?


A broker is the right course of action for you.

thanks but I guerss what I am asking is, some seem to be fee upfront and I don't want to then pay that to be told, 'yes we can get you the amount you need but it would be fixed at 4.99%', when we could get 2.49% from our current lender and maybe have to set our sights a little lower.

ACG

If you have something official confirming the childcare costs will come down in August then im sure quite a few lenders would take that into account.

Personally I would suggest speaking to your lender, seeing what they recommend as they do offer an advised service now and if they have any ideas on how to get your mortgage through. Im not 100% most lenders will come back with suggestions as they tend to want to avoid giving options and advice (the irony) but it will save you paying that ERC.

Some brokers do charge the way you have said, some dont. Personally I charge on offer of a mortgage, but the application only goes in once the client has confirmed they are happy with the rates and fees so there are brokers out there that do what you want... just to be clear, im not touting for business, I dont do north of the border as the process is different.

pamelab21

thanks for that, we have always (should I say I!) sorted our mortgage ourselves but we didn't have the kids/childcare to worry about and its really affecting things.
Would a letter from the actual nursery be classed as an official letter?

ACG

Speak to the lender.
Tell them the situation, ask them firstly whether they would be happy to accept the payments will be reducing in 4 months and if so what you would need to provide.

Who is the lender out of curiosity?

pamelab21

we are currently with Britannia at the moment and I am sure they said when we first called they could lend up to 126k based on the current figures.

amnblog

pamelab21 wrote: »

thanks for that, we have always (should I say I!) sorted our mortgage ourselves but we didn't have the kids/childcare to worry about and its really affecting things.
Would a letter from the actual nursery be classed as an official letter?

The world of mortgage lending has changed, increasing the complexity.


Brokers have differing terms and fees. If you don't like the terms of a particular broker you can use another.