FTB - should I use a mortgage broker

Rachel71

Hello

I'm a FTB and have found a house where I would like to put in an offer. Was wondering whether I would be better off using a mortgage broker or not - I'm in an unusual position in that I have a large deposit (more than 50%) and would be borrowing just under twice my salary. No credit problems. Was wondering whether would be easier to use a broker or just go directly - have found some good rates online.

Thanks
Rachel

amnblog

You may well find the process of applying direct to lender extremely painful in the current market.

There is more to consider than merely the lending such as protecting yourself and the property from misfortune and that is also where a broker will have the edge.

Rachel71

Thank you amnblog. What are the difficulties in the current market? Are lenders saying no a lot?

TopperHarris

I first tried to get a mortgage from a advisor in the brank of my bank. He was as much use as a chocolate tea pot. I am not saying everyone is like that. 8 months later I had to start again with a broker. The whole process was so much better.

ACG

On paper it sounds like it should fly through and in practice it more than likely will. But there are always occassions where something should fly through that just becomes a nightmare.

Lenders in the main are not saying no, however they are delving a lot deeper into finances than ever before. There are also some changes coming in to effect over the next month or 2 (EU credit driective) that you may get caught up in. Again, nothing of any major concern but as it effects lenders, brokers and customers you may just want someone on your side if there are any issues due to these changes. And trying to get appointments with some lenders (typically those with the best rates) can take longer than seeing a broker.

David_White

If on face value you've got a straight forward case (if there is such a thing) then I guess it comes down to personal preference.

Some people very much require an arm around them throughout the application process as it can be very stressful, whereas others view the process similar to doing an online shop from Tesco.

From my experience the service you get from a retail bank will often be similar to the service you get in a mobile phone shop, whereas a good broker will be available to you as and when you need them.

For that extra level of service there will likely be a cost, but then again you get what you pay for usually.

tuda

ACG wrote: »

There are also some changes coming in to effect over the next month or 2 (EU credit driective) that you may get caught up in. r.

Hello, sorry to intrude, what are the changes you are referring to? I'm due to renew deal (or re-mortgage) in July, and would really like to know. Thank you.

Debtslayer

Rachel71 wrote: »

Hello

I'm a FTB and have found a house where I would like to put in an offer. Was wondering whether I would be better off using a mortgage broker or not - I'm in an unusual position in that I have a large deposit (more than 50%) and would be borrowing just under twice my salary. No credit problems. Was wondering whether would be easier to use a broker or just go directly - have found some good rates online.

Thanks
Rachel

It really depends how confident you feel about doing it yourself.
Personally we were FTB's (albeit not with your deposit though) and we straight away decided as we know nothing about the process we would use a broker so it's as smooth for us as it possibly can be.
I would therefore recommend a broker even with a large deposit as I feel they are professionals at this and do it day in, day out; know which lenders are the best to approach for you and what details etc will be required. If you contact a lender they are only going to offer you their products

tuda

Use a good/recommended broker, if you decide to use one. Not just any broker... and do a lot of research online, even before talking to the brokers.

I bought 4+ years ago, good salary, 15% deposit, good income (but newcomer to the UK so insufficient credit history). I called two local independent brokers found online, and they both said I needed to live at least 2-3 years to get a mortgage in the UK. I did a lot of research online, went direct to Halifax and they offered a mortgage (less than 1 year in the UK history). So both brokers were wrong.


PS. This website (with the brokers active on here) is a gold mine for mortgage-related information.