Mortgage Adviser or source myself?

CashStrappedTeen89

Just looking for a little guidance, looked on the "Martin Thread opinion on brokers" but its a bit out dated and I've realized how quickly the mortgage world changes.

I've just got back from a meeting with an Independent financial adviser, one my boss actually used on his property(s), from first glance looks promising using basic details I've provided.
Although I dont understand why he hasn't charged my boss a fee but quoted me £325.

Just wondering if most go for brokers or look themselves in the end?.

amnblog

If you don't know what you are doing you should engage a broker, you can't afford to get it wrong.

ACG

My fees vary from client to client. The fee varies depending on the complexity and size of the mortgage. If im writing a £500k mortgage, the commission is more than it would be on a £50k mortgage, so I can afford to reduce the fee.

But the broker has done a number of mortgages with the broker, so they have a relationship. I have a joiner who does work for me at reduced rates as he has done loads..economies of scale and all that.

CashStrappedTeen89

Thanks ACG, I didn't think it was that complicated a mortgage as there's 2 of us, 2 dependants, barely any debt and no loans and a big deposit, size of mortgage is around 180K, I say around as were looking at houses between £150,000 and £200,000 and I'm aiming for around a 15% deposit so I can invest the rest of my money elsewhere as my partner will own half of this house.
The most complicated bit is through a solicitor anyway as I'm protecting my investment with a contract as I'm paying the full deposit, unsure if it would be classed as a prenup. I need to discuss that with a solicitor though.

stator

Unless you have a specific reason I would just do it yourself.

ACG

I think its called a deed of trust. The solicitor will sort that out as you say.

Its not overly complicated by the sounds of it, but the commission is around £400 gross. From that there are deductions, compliance costs, insurance, etc etc and then the tax man wants his cut. From a broker perspective, I would charge a fee on it also and I do not think £325 is too bad. But obviously it is your money at the end of the day, its easy for me or anyone else to say its a good deal.

FBaby

The only issue with a broker is that they don't have deals with all lenders and depending on your circumstances, might not offer you the best deal you could find for yourself.

It's what happened to me when I was a FTB. At the time was looking at 100% (when you could still do it) so clearly an expensive package. As it turned out, my bank HSBC were doing a special deal for their own graduate customers and that turned out to be a much better deal then the best the broker could offer. HSBC didn't deal (still don't?) with brokers so glad I ended up looking for myself.

When years later I looked for a BTL, the circumstances were such that the only mortgage I could get was only available via a broker, so went that way.

David_White

You mention your boss having more than 1 property.

It's plausible that the broker has waived their broker fee due to doing repeat business with them.

muhandis

I went to a broker because we needed to maximise the amount lent and my pay was structured as basic+commission+bonus so I needed a lender that would consider this kind of income favourably. Eventually went with NW (who were willing to lend us twice as much as some other mainstream lenders).

Plus the area that we were buying has a very high buyer:seller ratio so I needed someone whom I could follow up with in case of any delays.

On the other hand if my salary was just a simple basic and I was buying in an unhurried fashion, I might have considered going direct to the bank.

CashStrappedTeen89 wrote: »

Just looking for a little guidance, looked on the "Martin Thread opinion on brokers" but its a bit out dated and I've realized how quickly the mortgage world changes.

I've just got back from a meeting with an Independent financial adviser, one my boss actually used on his property(s), from first glance looks promising using basic details I've provided.
Although I dont understand why he hasn't charged my boss a fee but quoted me £325.

Just wondering if most go for brokers or look themselves in the end?.

MortgageMamma

Using a mortgage broker gives you an advantage as if they know their stuff they will know which lenders criteria you will fit fairly quickly and which lenders not to touch. I understand it is possible for you just to go to a lenders website and look at the criteria yourself but its not always straightforward and there are certain things they do not publish.


Using a broker sorts the wheat from the chaff. You have a higher chance of success first time and someone to fight your corner - for example to help you challenge a down valuation or explain an anomaly on your bank statements or a non straightforward pay structure.


If you are happy with the broker you have seen then you should let him do his job and arrange your mortgage. Its common for a broker to charge a client a "lifetime advice fee" I do this myself, my clients pay £495 the first time they engage me and nothing thereafter.

fewcloudy

CashStrappedTeen89 wrote: »

Just looking for a little guidance, looked on the "Martin Thread opinion on brokers" but its a bit out dated and I've realized how quickly the mortgage world changes.

I've just got back from a meeting with an Independent financial adviser, one my boss actually used on his property(s), from first glance looks promising using basic details I've provided.
Although I dont understand why he hasn't charged my boss a fee but quoted me £325.

Just wondering if most go for brokers or look themselves in the end?.

Broker every time for me. Just a few months reading this message board should be enough to convince you!
Can't imagine how worrying it must be, approaching deadlines and having to chase up lenders to check how application is progressing (slowly) with no-one in your corner other than your solicitor (who never returns your calls) to help you.

Yes things do change, and as I am not a 'mortgage hobbyist' who knows this subject inside out, I am more than happy to bow to someone else's superior knowledge for the relatively few occasions in my lifetime that I will need to change mortgage products.

fc