Estate agent financial 'advice'

AliceBanned

I was working with an independent broker on buying the remaining 60% of my shared ownership flat. I spoke to him recently and he advised I wait until January when my debts will be at a more acceptable level. We didn't do an application at this stage though.


In the meantime I am keeping an eye on flats in the area with a view to possibly going for Plan B which is selling the shared ownership flat and moving to a bigger flat, as prices have come down enough presently for this.


My salary is £39k plus about £1k overtime per year. I agreed to speak to the estate agent's financial advisor on the phone as I was viewing flats through them. I know they are not independent especially as they want to put my flat on the market and say they have buyers waiting. I know my flat will sell and am not in a hurry. The estate agent mortgage advisor said that I could borrow between £230-240k. This changes the picture completely but I'm wondering how accurate this is, without an AIP? Should I go to an independent broker and say I would like to apply now, or wait as the independent broker recommended? The decision to sell my shared ownership flat or stay a couple of years longer depends on the mortgage availability. I would prefer to move on soon if I can but am getting mixed views on what is feasible.


I am also on SVR with my lender since October as the fixed rate came to an end but that isn't a huge issue with £40k remaining on the mortgage. I have about £43k equity depending on the market obviously. Thanks for any input as I don't want to have my head in the clouds and think I can afford more than I can. On the other hand I am paying over £500pm rent and service charge in SO>

MovingForwards

What's your debt level?
How much do you pay per month to service the debt?
Is it aged debt?
Any defaults etc?

Have you run your own numbers through many of the mortgage calculators to see what that comes up with? Not for an AIP, just to see what you can potentially borrow.

[Deleted User]

There are plenty of advisers that work in estate agents and are independent mortgage advisers. Equally there are plenty that will talk about your details to get more money out of you for buying through the agents.

I used to work in an estate agents and I would say that I was just as good an adviser regardless of where I was based. If they have experience and can explain what they are doing there is no real reason to not trust it just because of where they work.

Telling lies to gain a listing for the agents isnt something that even crossed my mind. I doubt it would be a thought for others.

Maybe ask for more information from your current broker as to why they cant do it when another broker has said they can.

Not all brokers are created equally and its difficult to figure out the good ones from the bad ones just because of where they choose to sit at a desk. Just go with the one you find comfortable dealing with and that you get a good feeling from.


edit: but for what its worth, £230k does sound on the high side based on your income level. Perhaps its a specialist mortgage for professionals?

AliceBanned

MovingForwards wrote: »

What's your debt level?
How much do you pay per month to service the debt?
Is it aged debt?
Any defaults etc?

Have you run your own numbers through many of the mortgage calculators to see what that comes up with? Not for an AIP, just to see what you can potentially borrow.

Thanks, just over £8000 and a £500 overdraft currently. I am repaying 700 per month as long as nothing goes wrong eg unforeseen payments such as car issue etc.


No defaults, no ccjs no late payments - for at least 6 years. I've tried to be squeaky clean since I bought the SO place and for years before, to ensure good credit rating, saved for deposit etc. Sill debt crept up previously as I was on lower income. Now I can repay but it is taking time.


When you say aged debt - I had around £3k debt when I moved into the SO place and it has crept up due to costs and now is reducing. But I do still use the cards and overdraft at the moment.


I will try some calculators - the MSE one gives me a lower figure and factoring the in debts makes a difference, whereas the estate agent advisor is suggesting I consolidate a few thousand into the mortgage to make a bigger mortgage available, so it is hard to know how much I can borrow using the calculators - this wasn't originally the way I wanted to go but I could put say £5k on to the mortgage and then overpay the mortgage. It is taking forever otherwise. I'm not sure lenders would see that as a way forward though, I know they are strict.

AliceBanned

Deleted_User wrote: »

There are plenty of advisers that work in estate agents and are independent mortgage advisers. Equally there are plenty that will talk about your details to get more money out of you for buying through the agents.

I used to work in an estate agents and I would say that I was just as good an adviser regardless of where I was based. If they have experience and can explain what they are doing there is no real reason to not trust it just because of where they work.

Telling lies to gain a listing for the agents isnt something that even crossed my mind. I doubt it would be a thought for others.

Maybe ask for more information from your current broker as to why they cant do it when another broker has said they can.

Not all brokers are created equally and its difficult to figure out the good ones from the bad ones just because of where they choose to sit at a desk. Just go with the one you find comfortable dealing with and that you get a good feeling from.


edit: but for what its worth, £230k does sound on the high side based on your income level. Perhaps its a specialist mortgage for professionals?

Thanks, I like the EA on the whole so was minded to be a bit more trusting. They do know their stuff so I think they can be of help and to be fair they have shown me two properties without me having mine even close to being on the market.


What I can't do is put my place on the market based on what the EA advisor said, and then find the mortgage availability is not as he suggested. I got the feeling he was slightly pushing me in that direction but I'd be stupid to not do more research and perhaps even a full application before leaving my current home.

AliceBanned

Thanks for the replies. I will look into some calculators and other independent brokers I think. Would it matter if I apply and then don't go ahead, but go ahead in late Jan or Feb. Ie impacting on credit score?

wjr4

AliceBanned wrote: »

I will try some calculators - the MSE one gives me a lower figure and factoring the in debts makes a difference, whereas the estate agent advisor is suggesting I consolidate a few thousand into the mortgage to make a bigger mortgage available, so it is hard to know how much I can borrow using the calculators - this wasn't originally the way I wanted to go but I could put say £5k on to the mortgage and then overpay the mortgage. It is taking forever otherwise. I'm not sure lenders would see that as a way forward though, I know they are strict.

Don't change unsecured debt to secured debt, if that is what you mean.

AliceBanned

wjr4 wrote: »

Don't change unsecured debt to secured debt, if that is what you mean.

Yep, wasn't my original intention but this is what the advisor recommended. I want to pay it off first but it will take time.


The independent broker suggested I pay it down to around £5k, then agree to repay it by the time the mortgage begins. Or whatever is manageable, might need to be £3k.


Or would I be better off transferring some of it to a Salary Finance loan, which I can get through work and pay off direct from my salary?

ACG

Whilst you can get 6x income in certain circumstances, I am not sure it would be at normal rates.
I would be expecting it to be closer to 4.5-5x income which would be a maximum of around £180-200k in order to get normal rates.

AliceBanned

Thanks yes I was surprised but he said the figure he came to was 5x income. I thought £4.5k was the maximum. There is equity from current flat taking it up to £240k but I think that is pushing it.


I think I will sit tight until the end of January. Then make a mortgage application. By then my debts will be around £5.5k and reducing. I have some overtime pay due in January.

ACG

AliceBanned wrote: »

Thanks yes I was surprised but he said the figure he came to was 5x income. I thought £4.5k was the maximum. There is equity from current flat taking it up to £240k but I think that is pushing it.


I think I will sit tight until the end of January. Then make a mortgage application. By then my debts will be around £5.5k and reducing. I have some overtime pay due in January.

Ah, that makes more sense. You said in your first post you could borrow £230-240k but I assume you mean you can buy for £230-240k?