Turns out getting a mortgage isn't as terrifying as I thought...

MCL1

So myself and partner are first time buyers. We've been renting for ages and had decided to buy, but the market by us is very hit or miss. We've come close to making an offer once or twice but decided since my partner is 7 months pregnant we'd essentially give up on buying until next year.

That's to say we stopped putting so much effort into being the ideal mortgage candidates, we dipped into the overdraft once or twice and I took out a new credit card. Then the perfect house popped up...

We couldn't not go for it, but at the same time because we were applying for a 95% mortgage, had existing debt in the form of a loan, recently taken out a credit card and used our overdraft we were absolutely bricking it thinking we'd be declined and miss out on our ideal home. Turns out it was absolutely fine...

Our timeline went like this;
20/09 - First viewing and DiP from HSBC Via L&C (DO NOT BOTHER WITH L&C)
23/09 - Second viewing
26/09 - Offer accepted pending finance
30/09 - AiP
01/10 - Application submitted
02/10 - Additional info requested and returned
04/10 - Mortgage offer received

So now it's just waiting for the solicitors to complete the missives!

The point is everything you see and hear about being a FTB getting a mortgage makes it seem almost impossible, but as long as you meet the affordability criteria it seems its actually quite easy and straightforward. HSBC didn't even ask for bank statements, they just went on payslips and credit file.

MortgageMamma

I'm glad you had a positive experience and you are right if you have straightforward circumstances and wish to borrow within your means then you are unlikely to encounter problems

But its not the same for all first time buyers - every clients circumstances are different and there are so many people out there needing advice to get the right mortgage product first time without damaging their chances or causing themselves a lot of stress with guesswork.

You are bang on the nail with L&C by the way, I did a test case with them on myself a couple of months back to see if they'd improved at all. They have not, it was like talking to a robot, all very scripted and impersonal. With them, you ARE just a number - nobody there actually gives a damn about the client - they are so big they don't need to build a reputation to get and keep their clients.

haras_nosirrah

Habito are just as bad.

A client I was dealing with and had an agreement in principle for ready to submit the application (adverse credit, shared ownership, 5% deposit so complicated) and client decided they didn't want to pay our fee of £399 on offer and so ditched us for the free online broker habito.

Came back 3 months later as habito messed it up so badly the client can't now get a mortgage for 6 months. She lost over £1200 in abortive solicitor, housing association reservation, valuation and lender fees.

Hell or habito as it goes - that one was hell.

benlondon1

Habito were absolutely fine for me, easy to talk with, easy to submit documents, kept up to date throughout and all done and dusted within 8 working days. Also £400 cashback through Quidco.

Seems every mortgage advisor on here slams Habito/"insert other online fee free broker", vested interest perhaps?

haras_nosirrah

I guess it depends on your circumstances.

4x salary, employed, good credit score, 10% deposit, straight forward vanilla lending they are fine.

My client had 5% deposit, a ccj, defaults, rent arrears, shared ownership,
I found one lender who would lend to her after speaking to underwriters and was ready to go. Application written and ready to be sent in. She decided to go dark and I later found she went to habito as they found a better rate and don't charge a fee. Problem is the lender they chose always ask for a rental reference and don't allow missed rent in the last 24 months when she had missed payments 6 months ago. I didn't suggest that lender as she didn't meet criteria for them. She came back to me 3 months later as she had been told she was declined and had been stone walked by habito but unfortunately her credit score had declined further and my original lender also said no so she lost the house and about £1200.

Basically if your situation is straight forward and you could get a mortgage with any bank then they are fine.

If you are a specialist case then you need to see a proper broker

csgohan4

haras_nosirrah wrote: »

I guess it depends on your circumstances.

4x salary, employed, good credit score, 10% deposit, straight forward vanilla lending they are fine.

My client had 5% deposit, a ccj, defaults, rent arrears, shared ownership,
I found one lender who would lend to her after speaking to underwriters and was ready to go. Application written and ready to be sent in. She decided to go dark and I later found she went to habito as they found a better rate and don't charge a fee. Problem is the lender they chose always ask for a rental reference and don't allow missed rent in the last 24 months when she had missed payments 6 months ago. I didn't suggest that lender as she didn't meet criteria for them. She came back to me 3 months later as she had been told she was declined and had been stone walked by habito but unfortunately her credit score had declined further and my original lender also said no so she lost the house and about £1200.

Basically if your situation is straight forward and you could get a mortgage with any bank then they are fine.

If you are a specialist case then you need to see a proper broker

Another thing to consider is brokers find lenders who are tailored to you, from being the quickest to offer, to least problems with underwriting or needing bank statements e.t.c. It's not always about the best rates as well

If you find a good one, their worth every penny

haras_nosirrah

Habito, London and country, trussle. Read the negative reviews. They all have a similar theme. London and country have a whopping 11% 1 star terrible reviews.

Submitted an application, got declined, said they couldn't help me, went to a proper broker and got an offer.

Spoke to them, my circumstances are slightly complicated, never heard from them again

Recommended a lender who I didn't fit criteria for. Couldn't get through to them

Brokers were having multiple conversations at the same time. I felt like a number and that they weren't listening. Made multiple mistakes on my application.

They asked what I wanted. They didn't advise me. I felt it would have been easier going direct to a bank.

The conveyor belt broking companies are free but to make a profit they have to churn large numbers of applications. They pick out the easy wins. Anyone with a case where they can apply anywhere will get their offer fine. May be the best deal, may be the one who issues a fast offer so they can move on - who knows.

Anyone who has interesting circumstances who needs someone to sit down and really listen to their circumstances, who needs hand holding through the process, who wants proper advice rather than Just someone to key the application needs to see a proper independent whole of market broker and yes most of us now charge a fee typically between 300 - 500 per application but by doing that we can afford to take on less clients, spend time doing research and speaking to underwriters, spend time really listening to applicants and getting it right. I know this is a money saving site and therefore people will automatically want to go free but if your circumstances aren't straight forward the free broker could cost you your house and more besides

ACG

I think the big thing with mortgages is the unknown.
You could be straightforward applicant and have a straightforward application.
You could be straightforward applicant and have a nightmare application.
You could be a nightmare applicant and have a straightforward application.
You could be a nightmare applicant and have a nightmare application.

The problem is nobody knows upfront even if everything on paper looks simple.

I did a case 3 months ago where the applicants had both been in IVAs and Bankrupt and had only been discharged 3 years. I charged them a fee that represented what work I expected to be involved as it was going to a quirky lender. It turned out to be one of the easiest cases I have done - mostly because the underwriter used common sense and read the explanation I provided.

But the flip side is last month I had a case which on paper was straightforward for us. In practice it took more work than the above case because the lender kept making mistakes - even after I had pointed it out to them - I charged a fee that did not cover my time.

MortgageMamma

I've actually tested all those brokerages mentioned using an alias and the "advice" i didn't get was my biggest concern. It was a very frustrating experience.

I do think though so much is down to chance with mortgages and mortgage advice, there is so much competition for the business that it must be mind boggling for a consumer to find a way through the maze and find a decent broker worth their fee. Online reviews are one thing but they can be abused and misrepresented. I don't think there is any better way than local word of mouth and just ASKING how much experience a broker has with a particular type of application/lending.

We are all so very British in this country, rarely does anyone speak directly or ask direct questions. If you want the best, you have to ask the right questions and no be afraid to offend. A good broker actually enjoys answering these sort of questions for a client. We all have our niche areas that we are better at and for all the hype about internet mortgage brokers/those that use AI to place a case I really think in the long run people will turn to more specialised mortgage brokers for a better service.

People like dealing with people at the end of the day.

zesh90x

MortgageMamma wrote: »

I've actually tested all those brokerages mentioned using an alias and the "advice" i didn't get was my biggest concern. It was a very frustrating experience.

I do think though so much is down to chance with mortgages and mortgage advice, there is so much competition for the business that it must be mind boggling for a consumer to find a way through the maze and find a decent broker worth their fee. Online reviews are one thing but they can be abused and misrepresented. I don't think there is any better way than local word of mouth and just ASKING how much experience a broker has with a particular type of application/lending.

We are all so very British in this country, rarely does anyone speak directly or ask direct questions. If you want the best, you have to ask the right questions and no be afraid to offend. A good broker actually enjoys answering these sort of questions for a client. We all have our niche areas that we are better at and for all the hype about internet mortgage brokers/those that use AI to place a case I really think in the long run people will turn to more specialised mortgage brokers for a better service.

People like dealing with people at the end of the day.

You make a very valid points, I've just been through the process of getting a mortgage, the only real difficult part on my application was the number of applicants (3), and the mortgage being somewhat large £450k with a £50k deposit.

Broker 1: Very good reviews on feefo, but ended up being a complete waste of time, made us go through an allocation with a lender who had a max lend limit, therefore would've never approved our mortgage.... Point is pick a broker who does their research to start with!

Also replies to emails was slow, often requiring me to call and chase etc.

Broker 2: Spoke to Trussle, awesome reviews on trustpilot but a complete mess, they kept ignoring my emails and responded or asked questions they wanted answers to rather then actually listening to my requirements and understanding the case... So I decided to not even bother letting them submit my application.

Broker 3: Found on this forum, replies to emails was within minutes, super helpful, super friendly, spent time understanding my case and performed basic research before giving suggestions.

End result: Got me an offer within 6 working days! :eek:
Oh.... And an amazing person too that I'll be recommending to all friends and family....

Point is - your broker can be everything or nothing for you. So making the right selection is crucial.

That's my two cents worth

Jane.1963

Totally agree zesh.
My brother works for a financial company and he put me in touch with the MD of his company who deals with mortgages ( we met up to go through everything ) it was passed onto office staff who then dealt with it and when I spoke to them didn’t seem to have a clue!
I got a decline. (Not blaming them for that)
We left it 6 months to be in a better position as we’re adverse borrowers, and when I spoke to my brother I told him I didn’t feel comfortable using the same MA so he put me in touch with another MA who used to work for the same company but now had his own company.
We ended up getting our mortgage and his service was second to none, always let me know what was going on, replied to emails and texts. I felt he was easier to talk to and I could explain everything to him if that makes sense?
He dealt with everything.
A good MA is worth their weight in gold in my opinion.
At the end of the day you are telling someone your whole financial history which to me is very personal so you need to feel you can speak to them openly and honestly.
Sorry to go on lol