Independent Mortage Broker or Building Soceity - First Time Buyers

CookwiththeE

Hello.


EDIT: Meant to change title to general queries for first time buyer but forgot to before post.



Myself and my partner are a first time buyer and recently popped into Nationwide for a pre-agreement in principle meeting, where the worker basically tried to suss out whether we can get a mortage or not.



As we already we knew, we are eligible. We then booked in for DIP appointment on septemeber. But me and OH are keen to start making offers on properties in our desired area, so I have a couple of questions.


How important is the DIP? I can show an EA that we have well over the deposit required, that my OH has been in a permanent well paying job for three years and that I have just started a permant well paying job. I ask this because I feel if we get our DIP from Nationwide we will 1. have to stick with them and 2. the DIP will reveal we can afford abit more than we actually want to pay, not something I want to tell an EA when I am trying to get a deal.


Secondly, should I see a local independent mortage advisor business that can advise me on which mortage and lenders to use. My OH says that building soceities are her desired option as this is what her father has told her. But I feel like I want to use an independent so they can tell us about other mortages Nationwide do not offer.



Finally, how do I actually make an offer? Do I just call up an EA and say we would like to to pay this amount, heres our deposit (proof of) and then what? DO they wait for me to get a mortage processed?


Many Thanks

haras_nosirrah

It depends on whether you want to see if you can get the best deal available which may or may not be nationwide.

An independent whole of market broker can tell you what every lender can offer. Nationwide can only tell you what they can offer which may or may not be more expensive depending on the loan to value.

Also a broker could get you a dip pretty quickly - we aim for within 24 hours but can usually do same day once we have all the documents.

muhandis

OP, I can't think of any good reason why you would not want to consult a broker. If cost is the concern, there are plenty of brokers who don't charge a fee, see the MSE page here



I'm not sure what the reasoning is behind the thinking that building societies are better than banks for mortgages but from a moneysaving point of view, I can't think of any reason to go with a BS over a bank unless the actual product was better/cheaper/more suited, etc.

AdrianC

muhandis wrote: »

I'm not sure what the reasoning is behind the thinking that building societies are better than banks for mortgages

I suspect it's tied to the old notion of BS being mutuals, or simply going back to when BS did mortgages and banks didn't, depending on how ancient this FiL is...

The vast majority of BS demutualised ages ago, and there's pretty much no difference between them now. Go with what best suits your needs and is cheapest. If, like many people who've been around for a while, you have a personal "I wouldn't give them my money if they were the last financial institution in the world" list, then obvs take that into account...

OP - I think your subject line shows that you're a bit confused about what a broker does. A broker doesn't lend you money - they find the right place for you to borrow it. A BS or bank actually does the lending - and can only tell you about THEIR loans.

hazyjo

CookwiththeE wrote: »

How important is the DIP? I can show an EA that we have well over the deposit required, that my OH has been in a permanent well paying job for three years and that I have just started a permant well paying job. I ask this because I feel if we get our DIP from Nationwide we will 1. have to stick with them and 2. the DIP will reveal we can afford abit more than we actually want to pay, not something I want to tell an EA when I am trying to get a deal.

Secondly, should I see a local independent mortage advisor business that can advise me on which mortage and lenders to use. My OH says that building soceities are her desired option as this is what her father has told her. But I feel like I want to use an independent so they can tell us about other mortages Nationwide do not offer.

Finally, how do I actually make an offer? Do I just call up an EA and say we would like to to pay this amount, heres our deposit (proof of) and then what? DO they wait for me to get a mortage processed?

Many Thanks

You can get your broker or lender to send something through to the EA saying 'yes, they are good for that amount of money (they will prob add something like 'subject to survey/final application'). It's not for proof of your deposit, it's to say that you should, in theory, be able to borrow enough money so that, along with your deposit, you can afford to buy whatever it is you're offering on. They won't have to disclose exactly what you could borrow.

Yes, ring when you offer. Do not offer the asking price first off - try an offer. If say something is up for £250k and has been on the market a couple of months and you think that is reasonably priced (not overpriced) for the area, you may say 'Please could you put forward an offer of £238k'. They will come back and say 'they are looking for something much closer to the asking price. Could you get nearer to £245k' and then you might say 'let me speak with my OH'. Ring them back then say 'Please could you try £242k - we don't really want to pay more than that for that property because of 'X'' (I'm sure you'll find some compromise like 'no parking' or 'small third bed' or 'tiny garden' to throw in the mix) and they'll say 'I'll put that to the vendor'. They will prob say no, and you can say it's prob more than you want to spend so you'll get back to them. Then it's often a case of who caves in first. I have known my maximum and walked if they've wanted more than I've been willing to spend. If something is new to the market, they will be far less likely to take an offer.

Honestly, it's a very tiresome, predictable but exciting game. Watch a few Location Location Locations to see how they do it at the end (but don't expect it to always be that quick - it sometimes takes days to get a reply).

I've used YBS for years and am very happy. I always find their rates very competitive.

CookwiththeE

Hi all,


I have a DIP now from L&C though I am aware as it has no credit check it doesent actually mean much. OH thinks building societies are more secure from what her father has told her, though I would like to shop around as I said.


So we have a DIP from L&C who Im using to look at other mortages, we have rearranged the meeting for our Nationwide DIP for next week and I have also contacted a independent local broker.



I feel these are the best options and feel from your comments I am doing the right thing by looking around.



Saying all that Nationwide did offer one of the most appealing mortages from the L&C list after I put in all my details.... maybe its not just old crack tradition after all. But im not expert so Im going to see an expert.

AdrianC

CookwiththeE wrote: »

OH thinks building societies are more secure from what her father has told her

What does she think he means by "more secure"?

hazyjo

Does she think that money is 'more secure in a building society than a bank'?


Why? They will be lending you money, not you depositing your money with them... :think:

AdrianC

hazyjo wrote: »

Does she think that money is 'more secure in a building society than a bank'?

Why? They will be lending you money, not you depositing your money with them... :think:

...not to mention FSCS...