Confused - questions for brokers

onetimeatponycamp

Hello lovely broker forumites, hoping you can help un-confuse me.

I'm a FTB buying on HTB. I've spoken to a few brokers and they have all said different things and found me different rates! Essentially I have established that I will want to apply to Halifax. The brokers have said it needs to be a shared equity product, however when I spoke to Halifax direct they said that that's not the case and I can apply for whichever FTB product. 

Also, I've looked on the site and they have the product cut-off at 75% - so some rates 60-75% LTV and others 75-80% LTV. As I am bang on the 75% does that mean I can choose which one, and therefore would go for one of the better rate 60-75% LTV products? 

Assuming I'm applying to a specific lender and fit the criteria for a product in terms of LTV & mortgage value, would there be any other reason the lender might be more likely to lend on one product vs another? And would I have to apply for the shared equity specific with Halifax, or can I apply for the standard FTB products, which are better rates? Is it different for going through a broker vs going direct - ie. with a broker would I need a shared equity product, whereas going direct just apply for one of the standard FTB products? What are the potential pitfalls of applying direct?

haras_n0sirrah

As a specialist affordable housing broker I can confirm it would be a shared equity product and Halifax direct is wrong - which is a bit worrying 

Whats_your_forte

Done loads of a HTB mortgages and you are being advised wrong by the Halifax. Use a broker as this is a bit worrying.

Also, Halifax will knock incentives off your mortgage amount so again, worth getting the correct advice for this.

You asked what the pitfalls are for applying direct. I think THOSE have been answered!!

amnblog

The usuable range of Halifax products are:
Affordable Housing - Shared Equity (including HTB Equity Loan) 
Confusing for borrowers to understand that the Team at the Lender are not always correct, but there we are.
By the way, attempting a H2B purchase without a Broker is a sure fire way to fall flat on your face.

kingstreet

Whats_your_forte said:

Done loads of a HTB mortgages and you are being advised wrong by the Halifax. Use a broker as this is a bit worrying.

Also, Halifax will knock incentives off your mortgage amount so again, worth getting the correct advice for this.

You asked what the pitfalls are for applying direct. I think THOSE have been answered!!

Yep. Avoid Halifax if your newbuild cash incentives are more than 1% of the purchase price if you are only putting down 5% deposit!

onetimeatponycamp

Thanks for your replies, and sorry for the delay in coming back! That's all really helpful. I don't have any incentives so at least that's not an issue - the only thing they said was that they would pay for the broker if I used theirs. And it looks like the other broker I've spoken to is suggesting the wrong product as I'm fairly sure that it's not a shared equity one. The only thing is that Habito apparently are able to get a slightly better rate than the brokers with the correct product - they confirmed that it's a shared equity exclusive.

amnblog said:

By the way, attempting a H2B purchase without a Broker is a sure fire way to fall flat on your face.

I'm keen to know what the particular reasons for this are, other than what's already been mentioned? Only because it looks like the broker I'd chosen isn't that experienced with HTB - I'm guessing what you're saying is a Broker who is familiar with HTB?