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Do I really need a private mortgage advisor?
Hello!
My mum and I live together and are downsizing after the end of her marriage. My plan is to buy into 25% of the new property, she will buy 75% with the sale of the house. I want to get a small mortgage of £30k to help purchase my quarter.
From what I understand I can't get the mortgage alone? Because I'm a first time buyer and she isn't would that rule me out of any first time buyer deals?
Does our situation sound complicated enough to that paying for (quite costly) independent advice is sensible or is it just worth me trying to do it myself?
Comments
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Might be better moving this to the mortgages board, but AFAIK you and your mum would have to take out a joint mortgage as lenders won't lend on just a percentage of the property as if you fail to pay, they'd struggle to repossess just your portion of the house.
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How is that quite costly? There are mortgage advisors who are free and take their income from the bank instead of you etc.
If you are first time buyer with not typical case I'd use mortgage advisor - they come up with a lot of ideas and get you an offer that's very likely to be accepted rather than bounce back from bank rejection to another.
In theory your mum can give all the money and you can buy the house yourself - though depending on her age, house value it may go under IHT. Also a lot dpends on your relationship etc.
Also £500 compared to £300k house isn't that much..
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You can DIY your mortgage, or get a free mortgage advisor, or pay for a mortgage advisor. An advisor might get you a slightly better rate, or is probably useful in complicated cases or where people have poor credit. We just spent some time online ourselves and found the best deal we could.
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moving this to mortgages just in case there's more info available…..
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So you dont know if you can get a sole mortgage or have to have a joint mortgage but dont like the idea of having an advisor that will answer these sorts of questions for you and cost you nothing?
Any offers from banks is down to them to set the rules and who can and can't qualify for them, again a mortgage broker will know these and advise on the best approach.
The one key consideration though is for stamp duty, for which the rules are set by law, you won't be a first time buyer as one of the buyers isnt a first time buyer but more importantly if you were to buy yourself a place in the future you still wouldnt count as a first time buyer due to this purchase.
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Some brokers are fee free, some charge.
However, I think the question is - can you do this alone?
If you can, then no you do not need a broker.
If you cant or you are unsure then you probably do.
What you want to do is not straight forward and there are probably considerations regarding your mum, her age and health/future health.
My personal opinion is that you probably want a broker and a good one and that will likely cost - as someone else mentioned maybe £500 fee is maybe not a million miles out. I dont know if that is a number you consider expensive or not. But if you are prepared to put the research in yourself, then you can do it yourself.
I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
A £30k mortgage will earn a broker about £120 in lender commission which isn't enough for the typical advice and arrangement service most offer. I'd say ACG's estimate of £500 should be top-end.
You do appear to need advice as the most important factor here is going to be owners, borrowers, equity splits etc and a good solicitor will also be a must.
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
For someone with your knowledge and experience you are far too cheap.
I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
And there will be an element of culpability if the deal goes sour.
Your life is too short to be unhappy 5 days a week in exchange for 2 days of freedom!
One can always make more money. No one who has ever lived can create more time.0 -
It's a tricky case but should be easlily placeable and not demand the kind of time one of your typical cases probably eats up.
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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