Mortgage brokers...

[Sarah_W]

I went to a guy who claimed to be "whole of market" but am finding better rates on the internet myself. Admittedly, one's through First Direct, so am I right in thinking even if a broker's whole of market he still wont have access to lenders who deal directly only?

Also, with good earnings (self emplyed through my own LTD company for the past 4 years), good credit history etc, on a 75% LTV, 250k property I've found:

Fixed: 3.2% plus 1k fee
Offset fixed: (First Direct) 3.29% with 1k fee

[Bluebarge]

There are vastly fewer mortgage products on the market than there used to be and many bigger lenders now only deal direct so that they increase their margins. So mortgage brokers will not have all the best deals and are feeling the pinch.

[King David]

Have a look at HSBC. I have just got mine from there and they some pretty good offers at the moment.

[Republik]

I hate these setups fees, such an unnecessary extortion, surely we pay enough interest on a mortgage as it is!

[Justayellowbadge]

Sarah_W said:

am I right in thinking even if a broker's whole of market he still wont have access to lenders who deal directly only?

Erm.

[Sarah_W]

I'm tempted to go to First Direct, however being self employed my company has made no profit in the past financial year. Luckily I've enough cash in it to continue paying a good wage for last year and for the next 2 years, but I know First Direct have a reputation for cherry picking customers for Credit Cards and presume they may be demanding too for their mortgage products. I'd hate to get a few weeks into the ap to get turned down and start the mortgage hunt again!

[Oggs]

Sarah email PH'er Scotal he is a independent mortgage broker

[scotal]

Sarah_W said:

I'm tempted to go to First Direct, however being self employed my company has made no profit in the past financial year. Luckily I've enough cash in it to continue paying a good wage for last year and for the next 2 years, but I know First Direct have a reputation for cherry picking customers for Credit Cards and presume they may be demanding too for their mortgage products. I'd hate to get a few weeks into the ap to get turned down and start the mortgage hunt again!

First dirdct will want to know your last 3 years nett profits.
They will then work out your affordability off the back of that.

Making no profit in the last year is not going to be a great help as you can imagine.

[scotal]

Oggs said:

Sarah email PH'er Scotal he is a independent mortgage broker

Thanks Oggs, technically speaking I'm whole of market becuase i dont charge fees, however, some WoM brokers are still tied to restricted panels. I'm not, but First Direct still own't deal with me.
THey did broekr mortgages for a while, but they aren't really into the, the clue is in the name.

[Zippee]

Oggs said:

Sarah email PH'er Scotal he is a independent mortgage broker

+1 - Very helpful chap

ETA, I see he's just replied above

Edited by Zippee on Friday 19th March 16:58

[Justayellowbadge]

Zippee said:

Oggs said:

Sarah email PH'er Scotal he is a independent mortgage broker

+1 - Very helpful chap

If not a little orange.

[Sarah_W]

scotal said:

Sarah_W said:

I'm tempted to go to First Direct, however being self employed my company has made no profit in the past financial year. Luckily I've enough cash in it to continue paying a good wage for last year and for the next 2 years, but I know First Direct have a reputation for cherry picking customers for Credit Cards and presume they may be demanding too for their mortgage products. I'd hate to get a few weeks into the ap to get turned down and start the mortgage hunt again!

First dirdct will want to know your last 3 years nett profits.
They will then work out your affordability off the back of that.

Making no profit in the last year is not going to be a great help as you can imagine.

Thanks scotal. Will all lenders want to see my company accounts, or are there some that are just interested in my personal income which has remained good?

I may be tempted by paying a slightly higher rate with my local broker if his knowledge of which lenders require seeing what is going to help!

[scotal]

Sarah_W said:

Thanks scotal. Will all lenders want to see my company accounts, or are there some that are just interested in my personal income which has remained good?

I may be tempted by paying a slightly higher rate with my local broker if his knowledge of which lenders require seeing what is going to help!

If you're down as self employed and own more than 20% of the business, they'll want to know about the firm.
You might be tempted to lie to mortgage lenders, loads of people have in the past. Some of them are now facing criminal charges.

[PistonReg]

dibbers006 said:

That is good.

I am looking currently and First Direct seem very competitive.

Presumably being direct and not having brokers fees to pay helps them come out top of the tables.

[Sarah_W]

scotal said:

Sarah_W said:

Thanks scotal. Will all lenders want to see my company accounts, or are there some that are just interested in my personal income which has remained good?

I may be tempted by paying a slightly higher rate with my local broker if his knowledge of which lenders require seeing what is going to help!

If you're down as self employed and own more than 20% of the business, they'll want to know about the firm.
You might be tempted to lie to mortgage lenders, loads of people have in the past. Some of them are now facing criminal charges.

Will my company making no profit last year preclude me from getting a mortgage at 75% LTV, or are there companies that will average over a few years?

I do IT contracting and the market has been dead for my field!

[scotal]

PistonReg said:

dibbers006 said:

That is good.

I am looking currently and First Direct seem very competitive.

Presumably being direct and not having brokers fees to pay helps them come out top of the tables.

The average %age pid to a broker isn't going to greatly affect things. FD tend to be a lender who comes out with a coupleof great deals a year, then once they've donehtier budget they pull back.
They are pretty conservative in their underwriting as well, so they do not have the bad loans books of people like B&B

[vinnie83]

Best thing to do is call First Direct, and ask them. Us brokers tend to know how things work with the lenders we've used by trial and error and experience... with FD, there is none of that.

Give them a call, ask them what their income criteria is. If you want help following that, PM me (or Scotal) and one of us can help I'm sure.

What we'd need to know is :

Last 3 years net profits (these would need to be proved)

Mortgage amount required

Preferably the address of your house, and a description (eg. 3 bedroom semi with a garage, conservatory, double glazed etc) - reason being is most people over extimate the value of their homes, and don't realise till the valuation by the lender comes back as less.

If you provide the above, we can do some research into a realistic (lenders view) valuation of your home, and make sure it does fall within the 75% mark.

Also can we assume you have a perfect credit history too? This is very important at the moment.

[Sarah_W]

vinnie83 said:

Best thing to do is call First Direct, and ask them. Us brokers tend to know how things work with the lenders we've used by trial and error and experience... with FD, there is none of that.

Give them a call, ask them what their income criteria is. If you want help following that, PM me (or Scotal) and one of us can help I'm sure.

What we'd need to know is :

Last 3 years net profits (these would need to be proved)

Mortgage amount required

Preferably the address of your house, and a description (eg. 3 bedroom semi with a garage, conservatory, double glazed etc) - reason being is most people over extimate the value of their homes, and don't realise till the valuation by the lender comes back as less.

If you provide the above, we can do some research into a realistic (lenders view) valuation of your home, and make sure it does fall within the 75% mark.

Also can we assume you have a perfect credit history too? This is very important at the moment.

Thanks for your post Vinnie. My income's been very good for the past 3 years, it's just that the company I own that I take my income from hasn't made any profit last year - there's enough reserved capital for another 2 years of good income though so I presumed t wouldn'tbe an issue.

Regarding the house, it's one I'm purchasing and is one of 6 identical built semis in a row. Another of them sold for 275 last September and this one is going throughat 250 (okay, in need of some decoration, new carpets, tired kitchen etc)

I've an unblemished credit history, although have moved 3 times in the past year, all moves a year apart. On the electoral register at each though, no debts, CCJs etc...

The First Direct deal is £500 less arrangement fee and .5% less per month for a fixed offset, so tempted to go to them directly. Would going through a broker provide "weight" to my application or could they help to get the mortgage agreed, or is their main benefit in advising on the types of and available mortgages, best rates, meeting specs e.g. fees, overpayment etc etc? In other words, given the above would I be foolish to consider applying myslf to First Direct?

[scotal]

Sarah_W said:

Thanks for your post Vinnie. My income's been very good for the past 3 years, it's just that the company I own that I take my income from hasn't made any profit last year - there's enough reserved capital for another 2 years of good income though so I presumed t wouldn'tbe an issue.

Regarding the house, it's one I'm purchasing and is one of 6 identical built semis in a row. Another of them sold for 275 last September and this one is going throughat 250 (okay, in need of some decoration, new carpets, tired kitchen etc)

I've an unblemished credit history, although have moved 3 times in the past year, all moves a year apart. On the electoral register at each though, no debts, CCJs etc...

The First Direct deal is £500 less arrangement fee and .5% less per month for a fixed offset, so tempted to go to them directly. Would going through a broker provide "weight" to my application or could they help to get the mortgage agreed, or is their main benefit in advising on the types of and available mortgages, best rates, meeting specs e.g. fees, overpayment etc etc? In other words, given the above would I be foolish to consider applying myslf to First Direct?

You can't go to FD via a broker, FD don't speak to brokers.
Going through a broker doens't provide weight, your details have to stand on their own, however the broker input will help you pick the right lender first time, and we can present your details in the best light. That of course depends on you being open with your broker, a surprising number of people aren't.

[vinnie83]

scotal said:

Sarah_W said:

Thanks for your post Vinnie. My income's been very good for the past 3 years, it's just that the company I own that I take my income from hasn't made any profit last year - there's enough reserved capital for another 2 years of good income though so I presumed t wouldn'tbe an issue.

Regarding the house, it's one I'm purchasing and is one of 6 identical built semis in a row. Another of them sold for 275 last September and this one is going throughat 250 (okay, in need of some decoration, new carpets, tired kitchen etc)

I've an unblemished credit history, although have moved 3 times in the past year, all moves a year apart. On the electoral register at each though, no debts, CCJs etc...

The First Direct deal is £500 less arrangement fee and .5% less per month for a fixed offset, so tempted to go to them directly. Would going through a broker provide "weight" to my application or could they help to get the mortgage agreed, or is their main benefit in advising on the types of and available mortgages, best rates, meeting specs e.g. fees, overpayment etc etc? In other words, given the above would I be foolish to consider applying myslf to First Direct?

You can't go to FD via a broker, FD don't speak to brokers.
Going through a broker doens't provide weight, your details have to stand on their own, however the broker input will help you pick the right lender first time, and we can present your details in the best light. That of course depends on you being open with your broker, a surprising number of people aren't.

+1

You'll need to speak to FD yourself to find out what their criteria is, and what they will offer you.

Although going through a broker doesn't provide any weight (they will decline you through a broker exactly as they would directly), but brokers do have access to products that you won't (but as mentioned earlier, you'll have access to things we don't).

The biggest strength in a broker is that if you get a good one, working with them over the years you can save thousands and/or years off your mortgage term.