FTB - noobie questions

Jami74

Sorry for the dumb questions, I know they are probably really boring for the regulars but would appreciate any input as I don't have anyone to talk to about this in real life.

I put in an offer last week and was booked an appointment with the inhouse mortgage adviser. I am a straight forward first time buyer with everything ready to go buying a chain free property. I explained that I'd done an AIP with L&C but had to have the appointment to check I was a proceedable buyer. I was quoted for everything and shown a mortgage recommendation for similar to what I've been finding myself online. I said I had been planning to get some quotes from solicitors for that side of things but was told they all basically charge the same and the advantage of keeping it all in house was that it would be quicker. I declined to use their mortgage services due to the £900 fee. They offered to do it for a reduced fee of £200. I naively believed that they (mortgage advisor and solicitor) would be local businesses and liked the idea of supporting local but have now realised they are part of a big company based in London. I have signed an instruction with their conveyancer but there is a 14 day cancellation clause.

L&C mortgage recommendation worked out very slightly less over the fixed period (talking about £200 over 5 years) and said because they were a big company would be quick, there were also less upfront costs. Their conveyancer package includes buyer protection insurance and their quote is about £500 cheaper than the above. 

Both mortgage advisors are calling me on Monday. Am I over thinking this? I already feel a bit scammed by the estate agents mortgage advisor that they were going to charge me £900 but dropped it when I said no, but I don't want things to be held up or go wrong because I don't go with them. 

Sorry it's so long. What would you do? And what are the consequences of going with one over the other?

RHemmings

It was a meeting with an in-house mortgage advisor for a well-known national chain that made my mind up (very firmly) that I would not buy a property with a mortgage. However, around my way there were still perfectly suitable houses within my price range. 

In your case, I would probably revert to L&C and just say to the estate agent that is your decision without entering into further discussions with the agent. However, I would remain concerned that would make the agents anti-me, and pro- anyone else offering on the property that will go with an in-house mortgage. And, it's possible that I would end up cutting my nose off to spite my face, but you asked what we would do and this is what I would do in your situation. 

I'd make very sure that the property is fully off the market before proceeding, though I believe that it's reasonable for the property to remain on the market until you have a mortgage offer, not just AIP. 

eddddy

Jami74 said:

...but I don't want things to be held up or go wrong because I don't go with them. 

The estate agent gets referral fees from conveyancers and mortgage brokers if you use them - so the estate agents sometimes make up stories (like the bit I quoted above) to 'scare' you into using them, to help them make money.

I don't think there's any evidence to suggest that those conveyancers and mortgage brokers are quicker or more effective.

Jami74 said:

Their conveyancer package includes buyer protection insurance...

The whole 'buyer protection insurance' market looks a bit dodgy to me - perhaps a bit like the PPI market was, which turned into a huge scandal. I wouldn't pay for buyer protection insurance.

Again, it's often a way of getting referral fees for estate agents.

Devongardener

Don’t be afraid of asking any questions as a FTB, it can be very overwhelming when making this huge commitment!
Estate agents get commission for every buyer who use their so called in-house conveyancing and mortgage service, so will always push them.
 You didn’t have to see their advisor to prove affordability, this would be easily done with evidence of your mortgage offer and proof of deposit, and as you have discovered the conveyancers are not local.   When I made an offer last year, the agent wanted me to speak to their conveyancer, I refused but they passed my number to them anyway, when they called they said they were located in the same town as the agent, but their number came up as being in London.    If you are still in the cooling system period, just tell them you are finding a local firm, which is much better anyway when needing to submit documents and for a personal service rather than a what is essentially a call centre.
I would stick with you original mortgage offer.    Stand firm, the estate agent need the sale!

user1977

eddddy said:

Jami74 said:

...but I don't want things to be held up or go wrong because I don't go with them. 

I don't think there's any evidence to suggest that those conveyancers and mortgage brokers are quicker or more effective.

All things being equal, the conveyancers ought to be quicker (familiar with the estate titles / the developer's practices etc) - but (a) not necessarily and (b) not in a way which is advantageous to the OP! You want a solicitor who is genuinely acting for your interests, not someone who will be more interested in the people sending them the work.

Smalltownhypocrite

Was it by any chance Reed Reins?

The INSISTED we have an appointment with their mortgage adviser (we explained several times we are CASH buyers). When they booked it in against our wishes we then phoned up and cancelled it explaining we did not need a mortgage and didn't want to waste the companies time. RR then refused to show us any property's and straight up started insulting us (telling us we where poor and couldn't afford a house. They sell houses well under our cash in hand budget btw) and slagged off the other local estate agents that where showing us houses.

Most unprofessional and rude company I have ever had this misfortune to deal with. No other estate agent has even even mentioned a mortgage advisor above saying 'if you need any mortgage help just let us know as we have recommended services' (or something to that effect) let alone tried to strong arm us into one. 

It's very clear RR are getting kickbacks from forcing this mortgage advice company on people.

FreeBear

user1977 said: You want a solicitor who is genuinely acting for your interests, not someone who will be more interested in the people sending them the work.

And also a solicitor that is on the mortgage provider's list of approved firms. Having a solicitor that is local can have its advantages, especially when handing over or signing documents. And if you are already known to them, you should avoid having to go through ID checks yet again.

propertyrental

Ignore the mortgage broker - use your own. If the EA wants/needs to see evidence you have a MIP and/or the cash required, that's fair enough. Or get your solicitor to confirm you have the funds to purchase a property of vaslue (price agreed).

And yes, use their solicitor - not theirs. Yours will work unequivacally for you whereas theirs will not want to rock the boat with respect to their relationship with the EA (who sends them busienss).

Mr.Generous

I also think of it this way. The company they want you to use has to pay someone to get them business. The good one's are turning away customers because of word of mouth. My daughter used the in house stuff when a FTB (against my advice) and they were unbelievably awful - for example not being able to calculate a 10% deposit - and they were under calculating so not an attempt to grab a few more pounds.

RHemmings

Smalltownhypocrite said:

Was it by any chance Reed Reins?

The INSISTED we have an appointment with their mortgage adviser (we explained several times we are CASH buyers). When they booked it in against our wishes we then phoned up and cancelled it explaining we did not need a mortgage and didn't want to waste the companies time. RR then refused to show us any property's and straight up started insulting us (telling us we where poor and couldn't afford a house. They sell houses well under our cash in hand budget btw) and slagged off the other local estate agents that where showing us houses.

Most unprofessional and rude company I have ever had this misfortune to deal with. No other estate agent has even even mentioned a mortgage advisor above saying 'if you need any mortgage help just let us know as we have recommended services' (or something to that effect) let alone tried to strong arm us into one. 

It's very clear RR are getting kickbacks from forcing this mortgage advice company on people.

Have you given them reviews on Trustpilot and Google Reviews to let others know what to expect? 

Jami74

Smalltownhypocrite said:

Was it by any chance Reed Reins?

No not them. 

Okay, so I'll phone L&C first thing tomorrow and ask them to apply for the mortgage asap and I will find out how to cancel the estate agents/mortgage brokers solicitor. Phew!

Am I allowed another question please? Do I wait for the mortgage broker/solicitor/estate agents to tell me when to book a survey, or do I do that asap? 

Thanks everyone for advice.