Bank or broker for first mortgage?

marmitemum

My daughter and her husband have just got married, are currently in rented, and are seeking to buy their first home this summer (have each got a LISA opened last May). They’ve been with Lloyds for 9 and 7 years respectively and their natural inclination is to go to Lloyds first for an MAIP. Both have no credit card debts, neither are yet paying back their student loans as they don’t yet earn enough to need to, my daughter has paid back one agreement with Toyota Finance and is half way through paying back her second so her credit score should be okay. Is the bank a good route for a first mortgage?

SamJ35

Broker will likely have access to better deals across the market

YHM

Broker FTW everytime! Although I'm obviously a broker advocate.

Its completely down to who they feel comfortable with. Yes, you will get a better more comprehensive service from a broker, but if they don't feel comfortable doing that, then that they will lead them to Lloyds (who aren't particularly competitive at the moment).

marmitemum

I was wondering if their bank would be easier/quicker as they already know them and have all their history.

foxy-stoat

Either Halifax or Broker - the broker may well go to Halifax anyway.

What deposit have they got saved up?

foxy-stoat

marmitemum wrote: »

I was wondering if their bank would be easier/quicker as they already know them and have all their history.

You would be wrong to think that - their history is readily available by credit reference agencies and just because they have banked with Lloyds for years, doesnt mean they get any different treatment - Bank Managers have been replaced by computers!

dunstonh

Most mortgages in the UK are arranged via brokers. So, going direct to a bank is a minority method.

The main issue with going to a bank is that they will only offer their products. Not the marketplace. Plus you will have a bank clerk doing it (who may only be doing the role for a year or so before moving on). The broker will have the marketplace available, be aware of marketplace issues as, unless you get a new broker, they would likely be doing the role for some time.

I was wondering if their bank would be easier/quicker as they already know them and have all their history.

No. Indeed, brokers tend to be quicker on mortgages due to the banks getting more business that way. In-house lending often gets further scrutiny.

marmitemum

foxy-stoat, they will have £25k by the end of June, plus the bank of mum and dad aim to be adding to that. They are aiming to buy at around £230-£240k.

foxy-stoat

Broker for the best deal I would say, they will be able to get a reasonable rate with that deposit.

ACG

Obviously I am biased, although on these forums I do try to be impartial.

A broker (assuming it is a decent local one) will be around to effectively hand hold. Any questions, any problems, they are there. As an example, yesterday I called a client who received their offer 2 weeks ago to see how they were getting on and if they had any questions.

He had a list of questions that he felt he could not ask the solicitors (even though they were best placed to answer) but a quick courtesy call and I answered 3-4 questions he had so he could stop worrying about them.

If you go to a bank directly, you are probably going to struggle to get hold of the advisor as they usually look after a few branches or work in a call centre. It may then end up getting passed to a case handler anyway in a call centre. Everyone knows that call centres are hit and miss.

But, with that level of deposit, presumably a decent job history, the likelihood of them having any problems is quite slim.

thermal2844

I tried an independent broker with good reviews, it was a disheartening experience. We ended up going direct with Halifax and it was extremely easy and straightforward - surprisingly so, especially for FTBs. We aren't necessarily vanilla either, in that one applicant hasn't started the job yet (but has the contract), and the other applicant is self-employed 2 years. However we have no adverse credit so we sailed through. There was no lengthy underwriting process, simply we were approved then and there during the interview, subject to valuation.



Halifax does have the £1000 cash back, no strings attached, sent to your solicitor upon completion.


HTH