Finding a mortgage broker

Melvinsmum58

My mid twenties son is looking to buy near to where his company is based on the south coast but he currently lives/works from our home 150 miles away. Where should he look for brokers, local to where he buys, or nationally, or does it depend on his financial circumstances?

Are brokers paid by the purchaser and if so, is it a set fee or %, or does that change with circumstances.

He is in a good financial position, earning just over 60k, no debts, good credit record. He has a deposit of around £260k (mixture of an inheritance and saving whilst living at home). He would be limiting his purchase value to 450k so that he can utilise a LISA. 

Any advice welcome, house buying seems to have totally changed since we last bought 30+ years ago. 

kimwp

I bought ten years ago, so my advice might be out of date, but I think it's more important that his solicitor is local than his mortgage broker, as they will need to know if there are any searches specific to the area that would be sensible and will also be likely to know if there are any developments in the area.

I found having a mortgage broker incredibly useful for my first purchase, as he explained the whole process and was able to guarantee my offer without having a mortgage in principle (which expire) - so maybe ask if they offer this. At the time, some charged a percentage of the purchase. Mine charged a fixed fee based on a house price range. 

ACG

Hi,

I have just broken your questions down and I think I have covered them all off. 

 Where should he look for brokers, local to where he buys, or nationally - It doesnt really matter. We have customer in Scotland, Wales, Newcastle, Brighton and pretty much all over the UK but are based in Manchester. Now a days most brokers can work remotely. So just find one you/your son is happy with. 

or does it depend on his financial circumstances?  Not really. If you have bad credit or a job paid in euros or some other major quirk it might be worth finding a specialist but I think most brokers should be able to help your son. 

Are brokers paid by the purchaser and if so, is it a set fee or %, or does that change with circumstances. - Some brokers charge a fee, other brokers are fee free. All brokers will receive commission from the lender, for some brokers that is enough. Others (us included) are a bit greedy (joking), the amount of work/time involved compared to the commission received is usually not enough, so unless you are dealing with a firm that works on high volume, most will charge.  The (fee if there is one) will vary from firm to firm - typically anywhere between £0-999. Also WHEN they charge can vary, some will charge on application, some on offer and some on completion.