FTB: need a mortgage broker?

Willeh

I've done so much reading of material online - including posts on this forum but I feel like I'm now just drawing out the process and need to simply jump in!
But wanted to clarify a few final queries:

- Should we use a mortgage broker? I am of the belief that we can handle the whole process ourselves; our circumstances aren't particularly 'unusual' ... my partner and I are 25 and 24 y.o. respectively with a joint income of around £51k and a deposit of around £30k with no adverse credit history. The only confusing thing would be my pay - as a doctor - fluctuating from the 'base monthly pay' to +40% extra depending on the specialty job as I go through my four monthly posts for the next year and a half. Would this be confusing enough to deem a broker necessary?

- I've read that it's better to get an AIP before making a hard push in looking for a house as you have a much better idea of budget. This makes sense but is it true? I would imagine it's more reliable doing it this way than using a calculator online.

Thanks in anticipation of replies!

ACG

I am not a fan fo doing a DIP until you have an offer agreed on the property. The purchase price can vary from your DIP, the best deal today may not be the best deal tomorrow and they expire after a month give or take. Also if you go in there waiving your DIP which shows how much you can lend, an agent is likely to use that against you.

As for whether or not you need a broker, I would say assuming you can use your basic pay then you are right in that you are more than capable of doing the case yourself. However, a broker will not just find a good deal, they will do it all for you. Research, submission, fire fighting, dealing with the agent (I would almost guarantee an estate agent will apply undue pressure to a buyer that they would not apply to a broker), dealing with the lender and keep you up to date with timescales and next steps.

Very few people NEED a broker, but most think of us as a price comparison service which could not be further from the truth. The reality is that part of the job takes maybe an hour for most people, it is everything else that takes time.

Willeh

ACG wrote: »

I am not a fan fo doing a DIP until you have an offer agreed on the property. The purchase price can vary from your DIP, the best deal today may not be the best deal tomorrow and they expire after a month give or take. Also if you go in there waiving your DIP which shows how much you can lend, an agent is likely to use that against you.

As for whether or not you need a broker, I would say assuming you can use your basic pay then you are right in that you are more than capable of doing the case yourself. However, a broker will not just find a good deal, they will do it all for you. Research, submission, fire fighting, dealing with the agent (I would almost guarantee an estate agent will apply undue pressure to a buyer that they would not apply to a broker), dealing with the lender and keep you up to date with timescales and next steps.

Very few people NEED a broker, but most think of us as a price comparison service which could not be further from the truth. The reality is that part of the job takes maybe an hour for most people, it is everything else that takes time.

Thanks very much for your reply ACG.
So it sounds like the process of: using an online calculator then house hunting then mortgage application is the best way forward? At which stage should a broker be contacted? Prior to house hunting as I guess they can also provide insight into the amount one would likely be lent?

ACG

I prefer to be included from the outset. It means I can get everything needed and be prepared. A lot of the time I get people saying they had an offer accepted 2 weeks ago and x has just decliend their application and then everything becomes a bit of a rush job.

wantonnoodle

We have just bought our first house, and would agree that you would be best off engaging a broker from the start. Ours was fantastic, he helped us work out how much we could realistically afford, and gave us pointers on how to deal with pushy estate agents, particularly those who won't let you view or offer before speaking to their in house mortgage advisors. While we were viewing houses, he was on hand to give advice on strategy regarding offering on a property we liked (we were outbid on 2), which meant we were able to offer from a position of confidence.

When our offer was accepted, because he had done all the legwork about affordability etc up front, he had enough information to get us a DIP within the hour which we needed to get the house taken off the market. I feel that getting all the homework done at the start made this so much quicker.

Once we were into dealing with the legals and the mortgage, he was indispensable, as there were some misunderstandings between the lender and our solicitor which, as he also had access to our mortgage file at the lender meant that he could provide the clarification and updates that we needed.

Ours was not an easy purchase in the end with structural works needing doing on the houe before we could push on with exchange - the vendor thankfully got these done to the required standard and we have the warranties for the work now - but our broker held everything together and was able to chase the relevant people where it was needed, remaining positive throughout.