FTB: When can we hire a broker?

LplateSaver

Hi I've been looking around online for a broker (as I don't know anyone to recommend me one) I've found one that doesn't charge (don't know if that's good or bad? Had budgeted £300 for it). I want to ring them to get a feel for them before going with them but it's probably too soon at the minute.

Basics are 160k house, 20k deposit + 10k gifted from OH parents + 10k gifted from my parents (abroad) = 120k loan over 35 years.

Applicant 1 (me): PT Job 1 for 1 year 10months @ £5200
PT Job 2 starting in June @ £8008

Applicant 2: FT Job starting June @£18278 but only after 8 weeks training, minimum wage before then.

1. How does it work? Could we start talking to a broker now or would we need to wait till June when we've started the second and new job or would we have to wait until August when OH is on his full wage?

2. Could a broker do anything for us at this stage? I'm guessing a DIP cannot be done on future wages.

3. Also I have a default from July 2013 that was satisfied in Sep 2014, will this limited our options a lot?

4. OH wants to leave current job before starting the new job in June eg preferably this month. He has enough to live on and has holiday built up that they won't let him take but would being unemployed for 4 weeks affect us negatively when applying for a mortgage?

nidO

Probably one for one of the forum's many brokers to give an accurate answer on, but to me it sounds like the most sensible thing to do would be to start looking for a mortgage around September/October, as by then both you and your OH will have 3 months payslips from your new employers and your OH will be up to his full salary.

Before then, your options on potential lenders are likely to be even more limited than they already will be by your relatively recent default.

Malmo

Can't answer all your questions, but I can suggest that you identify & engage more than one broker now to enable you to establish a working relationship with the right broker, based on your initial discussions. There's nothing stopping you from having an initial discussion just to find a broker that you want to work with, even if nothing really happens until the Summer.

I'd also say that given your default, which was in the last 24 months, you might want a broker who has experience in adverse credit issues & bear in mind that a fee-free broker may not provide the same level of specialist service in this area as someone who expects a fee, who may be better placed to help you. I'd go with a fee-based broker personally.

3. Also I have a default from July 2013 that was satisfied in Sep 2014, will this limited our options a lot?

Yes, it will limit your options, but not preclude you completely. I suspect a higher deposit will be required by some lenders.

ACG

Call the broker now, have a chat with them.

It may be possible to dip it now based on future income, although personally I would not want to DIP a case a month before applying (as it will expire and need another).

I think you may need to wait until the default becomes 3 years old unless you can up your deposit to 15%.

Get in touch with the broker definitely, they will be able to give you some timescales and when they think its best to apply.

ACG

I was not going to say anything but I will echo Malmos comments - as a broker I would not do this fee free without the adverse. With the adverse there is not a chance.

It could be worth seeing what your fee free broker comes back with and what a broker who charges with experience in adverse charges. You may find an experienced broker knows who to place it with at the better end of the market where as fee free gets you a mortgage but uses a hammer to crack a nut... you may not, but generally in this world you get what you pay for.

LplateSaver

Thanks Malmo and ACG on the comment of finding a fee broker. I have budgeted for this, I am just finding it difficult to find one through google. Is there a website where I can put in criteria eg adverse credit history to find a broker? At the minute I'm just googling broker + town name and it didn't come up with a lot of hits.

Also with regards to deposit you said to increase it to 15%, do you mean our own contribution because at the minute the deposit is 25%.

ACG

What about adverse or bad credit mortgage broker + town?

RE deposit - ignore me (I thought it was £20k made up of 2 x £10k, not £20k+10+10... I clearly cant read).

Malmo

LplateSaver wrote: »

Is there a website where I can put in criteria eg adverse credit history to find a broker? At the minute I'm just googling broker + town name and it didn't come up with a lot of hits.

One suggested method (as well as Google), is to follow the steps in this post.

LplateSaver

Well I've spoken to three brokers now and waiting for a call back from another. Have been told I'm far too early though and wouldn't be able to start until September One quoted £800 fees, another £1250 fees and the last one a £299 success only fee.