Broker or bank?

Gaztop7_2

Hello we desperately need some smart advise on the best way forward to get mortgage acceptance.

Myself and my wife are about to apply for a mortgage on a new house for £148k including a 22k deposit made from the sale of our old house. This will be our second mortgage, our first was over 8 years ago with HSBC. We We are looking to reapply with HSBC but can't decide if using them or a broker is the best way to get acceptance. Regarding our circumstances we have a combined income of 48k with about 3k of credit card debts and two young children. We have never missed a mortgage payment and recently (in the last 12 months) paid down a lot of credit card debt.

If people can advise if a whole of the market broker or going back to HSBC would be easier. We keep hearing scare stories about how hard it is to apply for a mortgage with a bank now.

Thank you in advance for the collective guidance offered.

Phil_H_MLIA(dip)_Cert_PFS

If you can tick all of the lender's (and regulator's) boxes then either one should be easy enough.
However, put aside that another lender might be "cheaper", and consider whether you feel that you have the appropriate knowledge and experience to make a decision based on the rate type and term of your product and to determine your nest mortgage "shape" when the Bank (irrespective of who) will simply ask you a series of pre-determined questions that do not allow for any human interaction or advice, inorder to pigeon-hole you into a product whilst ticking the compliance boxes.

[Deleted User]

If it's simply a choice of blindly sticking where you are or using a broker to get the most appropriate deal for you, then you should use a broker.

Alternatively, you could do some research into the various deals on offer and consider whether they may be appropriate.

Sticking with existing suppliers without checking elsewhere is rarely the best strategy in any field.

Gaztop7_2

Thanks for the quick replies! On checking HSBC have a good 2 year rate on about 1.85% product with standard fees so hopefully this is not blind, my concern is that HSBC sound like they now have a lot of red tape and questions about spending that they have to ask where as a mortgage broker might find the right lender for you're circumstances and get acceptance?

AnotherJoe

You are still going to have all the hoops to jump through on acceptance.

Phil_H_MLIA(dip)_Cert_PFS

So, why have you determined that over the course of the nest 2-10 years that the underlying rate availability will favour switching from rate to rate multiple times?

Every lender has to follow FCA regulations as an absolute minimum. If you do not wish to have to jump through the hoops on a personal level this is one of the areas where the "broker" comes into their own.

Actually the term broker is possibly clouding your decision here. Client's of a good whole of market intermediary or adviser would (and have) declined the option to approach the lender directly even where there is a differential in rate advised.