First Time Buyer; PAYE. Direct application to lender or mortgage broker?

darkidoe

Dear all MSErs

I am a first time buyer, Full NHS PAYE employment. I am looking to buy a relative new build <10 years. Do not need a specialist mortgage.

I wonder if people in my own situations would recommend going directly to the lender for applications after doing a price comparision or going via a broker still recommended?

Obviously trying to reduce costs etc.

Would a broker add very much value if I feel I may be able to do the application myself? Has anyone gone direct to lender and is it straight forward process?

ACG

I am a broker, so clearly I am going to be biased. But I do try to be impartial on here, that being said I do see problems even with straight forward cases and as an average person you do not know what you do not know which means you do not know what to look out for…

A broker isnt really a price comparison service. That does form a small part of the job, but ultimately most of our job is answering questions, pre-empting problems, fixing problems if they do arise and being a central point between you, the agents and the solicitors.

95% of the time if you are straight forward you should be fine and you should be more than capable of dealing with everything without a broker.

Good luck with whichever route you go.

Jemma01

I didn't use a broker I had 35% LTV, I went straight to the bank. I figured out what paperwork I needed as a self employed on the bank's website and submitted it. I never had late bills ever, or any form of bad credit, never took out a loan (except a student loan 20 years ago and paid it in 2008).

I was a bit nervous about having a very low profile (never owned a credit card) and being self employed, but it went fine.

If I got rejected, I would have tried a broker.

tacpot12

I think Jemma01's approach is good. Try the direct approach so that you know what this is like. If that approach doesn't work well or you find that you are not as standard as you think you are, or the property you want to buy isn't, try a broker.

RelievedSheff

I have done our last two mortgage applications (a remortgage and then a house purchase) myself but our cases are very simple. No missed payments or bad credit and both in long term stable employment paid by PAYE.

Gathering the required documents together took perhaps 15 minutes and the mortgage application probably 30 minutes.

MyRealNameToo

Our broker had a rate a few bps below what the bank was offering directly (though they admitted that it was unusual). Similarly at first renewal they called a few months beforehand saying that they'd just had notice the bank was putting up their rates so suggested renewing immediately. Feeling it was a hard sales pitch did phone another broker who confirmed yes that the bank had issued the notice.

So yes, I could have done it all myself but in my case would have paid a higher rate had I done it.

ACG

https://forums.moneysavingexpert.com/discussion/comment/82189099#Comment_82189099

Thats one thing I hate about being a broker. It can come across like you are a dodgy window salesman at times when all you are trying to do is what is best for the customer.

My dad does car leasing and he would occasionally call me up and tell me he could get an absolute bargain but I would need to do it now - if it was anyone other than my dad, I would think they were trying to rush me. Mental how we think isnt it.

kingstreet

https://forums.moneysavingexpert.com/discussion/6688800/first-time-buyer-paye-direct-application-to-lender-or-mortgage-broker

Ensure you select the right lender for the newbuild warranty on the property as it's under ten years old.

darkidoe

https://forums.moneysavingexpert.com/discussion/comment/82189532#Comment_82189532

Does that mean the 10 year warranty on the property will exclude certain mortgage lenders? Or certain lenders would want to see the warranty on the property and that may affect the rates?

I believe the warrantly is with NHBC warranty.

kingstreet

NHBC should be fine.

Some lenders don't accept some warranties. It's just something to be aware of in the newbuild mortgage sector.