Help with mortgage

Will123321

Hello.

I'm thinking to buy a property. But very confused how should i do it and where should i check.

I did read couple of articles, which says that i need a broker.

Can i just go directly to the bank for mortgage?

Thanks. 

MaryNB

Yes you can go directly. But if you have any adverse credit history, are self employed, have been furloughed at any stage etc it would be best to go to a broker. They will have a good understanding of each lender's requirements. Even if it straightforward case they might find you a better deal than you would on your own.

AdrianC

Yes, you can go directly to "the bank".
But "the bank", presumably the one you have your current account with, may very well not be the best deal for your circumstances. A good broker will search the whole market for the best deal for you, including products that may not be available to you applying directly.

Their fee is going to be minimal compared to the potential savings.

Will123321

So is better to go to a broker? No, i didn't had any furloughed, and not self employed. And my credit score seems to be ok.

Which broker should I go or check?

grumiofoundation

How much do you earn? How much do you want to borrow? How much deposit do you have?

If your application is quite standard then you may not 'need' a broker (but as AdrianC says above they can search the whole market (including some deals that may not be available to you) and may get you a better deal even including their fee if they charge one so is no harm in speaking to brokers to see what they can offer you)

Before applying for AIP*/speaking to a broker you can look at various banks online calculators for 'how much can i borrow' for a rough idea. 

*Some lenders Agreements in Principle do a soft check, some do a hard check.

hopeitwill

We went with one and without one in two different cases and having a broker makes it a lot easier to be honest even though we didn't have any adverse credit history.

Will123321

What broker you'd recommend? free of charge. 

moneysavinghero

Brokers are never free of charge. They want paying for what they do. Some may not charge you directly but will get a fee from the mortgage provider (who will of course accounted for this in the rates they give - this is why it is not always cheaper to go with a broker)

Will123321

moneysavinghero said:

Brokers are never free of charge. They want paying for what they do. Some may not charge you directly but will get a fee from the mortgage provider (who will of course accounted for this in the rates they give - this is why it is not always cheaper to go with a broker)

So it's better to go straight with the bank? Also, most of properties which i was looking they gone because an offer has been made.

How to make an offer? Do i need to apply first for the mortgage or find a property first?

moneysavinghero

Firstly you need to get a Decision in Principle (DIP). This is the mortgage provider saying in theory they would be willing to lend you x sum of money. Once you know how much you can get a mortgage for you will know which houses are within your budget. The Estate Agent will likely also want to see your DIP before they allow you to view houses (they don't want to waste time showing houses to people who can never actually buy them). Once you have viewed a house you like just call up the Estate Agent and make your offer. Once your offer has been accepted then you apply for the full mortgage.

In your situation as you don't really know what you are doing it might be better to go with a broker who can hold your hand throughout the process.

steampowered

If you are in a completely "standard" situation and have a decent understanding of what the options are (e.g. fixed rates vs variable rates), you don't need a broker.

You can just do a search using MSE's "best buy" comparison, see who is offering the best rate for the sort of mortgage you want, and apply to the bank of your choice.

If there is anything that is "unusual" - for example you are self-employed; not been in your job for very long; buying an unusual property; bad credit score etc. etc. - then it can be worth using a broker, as they have non-public information about each lender's individual requirements so will be able to advise you on which lenders are most likely to accept someone in your circumstances.