Broker charges

Heisenberg01

So I've found a local broker, got a decision in principle.

Fees are 1% to the broker, (approx 2k) mortgage is 30% deposit minimum and 3.5% fixed 2 years.

Affordability is good, however credit file not so obviously an adverse mortgage.

Several defaults years old.

Does this look ok or should be expecting a bit better?
Ideally would like 15/20% deposit I realise Apr gonna be high due to adverse, also 2k broker fee??

Broker says it's 30% full stop.

I'm looking at 209k+ house.

obay

Lots of lenders will take 15% as a minimum for adverse credit.

Heisenberg01

Yes, but I'm a minimum 30%, hence my question could I get lower? 15_20 is ideal, I can do 30 but would prefer not.

butterflybook

its going to be dependant on how old the defaults actually are, I can think of a few lenders whic would accept 15% for adverse but without knowing the full situation it is difficult to comment.

Broker fee seems quite steep however its in relation to the mortgage amount on this occasion and they are charging the max they can generally as that is 1%

ACG

You can get high street rates with 10% deposit with adverse.
The devil is in the detail however. If the defaults are quite large and recent then you are probably looking at a 25% deposit minimum.

If they are over say 18 months or only 1 or 2 in the last 12 months then you can probably get away with a 15% deposit.

Also, the brokers fee of £2k seems a little top heavy. I would expect it to be somewhere around £1000-1500 max personally.

Heisenberg01

25% would make a big difference from 30, would pay my fees and redecorate the house.
My defaults are all years old.

ACG

If everything is over 2 years old, you could probably get away with a 15% deposit at around 3.5-4%.
If everything is over 3 years old, you could probably get away with a 15% deposit at slightly lower rates than you have been quoted with a 25% deposit.

amnblog

If your defaults are over 24 months old there are mortgages available with 10% deposit.

If over 18 months old 15% deposit.

You can also get a mortgage with 20% deposit if your defaults are over 12 months old.

We don’t know your case which we need to establish what is actually available to you.

The market has moved on massively from £2,000 fees on £200,000 mortgage. Expect to pay less than half that.

dunstonh

1% fee for the broker? Good grief. That is the fee I would be looking more closely at. Mortgage brokers tend to be around £195-£500.

butterflybook

The broker fee is steep - For an adverse case i think something in the region of £750 is generally on the mark but as others have said the devil is in the detail

If your defaults are years old like you said then 15% deposit should be achievable

maybe time to look at a new broker