Recommendations for Mortgage Advisors

[Danny_Boy]

I applied for a mortgage with HSBC without using a broker. Very straight forwards, filled in the simple paperwork, gave them the proof they needed, mortgage approval letter arrived in the post.

I've no idea why someone would ever pay a mortgage broker, or even use a free one, when you can do the same comparison using moneysupermarket yourself.

 

---------- Post added 10-09-2015 at 10:34 ----------

 

 

How?

 

Are you really bad at looking?

 

It can be easy if you're a vanilla customer with a perfect credit file and you're looking to do something straight forward. Not many people fit that bill. There are a few reasons to use a broker but the best reason I can think of is for when things go wrong.

 

A broker will know the lending criteria of the majority of lenders available on the market so can source a deal that they know you will be able to get. Some banks have headline rates to get you through the door and then they offer you something not quite as good because you don't match the criteria.

 

The larger brokers get exclusive deals from some lenders, deals you can't get on the high street or with other smaller brokers so unless you've actually spoken to a broker there is no way you can tell if you've got the best deal.

 

Wherever you go you'll hear stories of people that did it themselves and found it easy and you'll have stories of people that had a nightmare doing it themselves.

 

Cyclone some of the banks & building societies have a very strict lending criteria we get a lot of clients that sourced their own mortgage with the bank / BS and then cane to us as they got declined

Edited September 10, 2015 by Danny_Boy

[Cyclone]

Perhaps I'm an odd case then. I gave a broker the chance to beat the mortgage I'd found through a comparison website the last time I remortgaged and they couldn't.

A friend is currently buying a house and he's contacted a broker. We have a small bet on whether the broker will beat the mortgage I found for him, again using a comparison website.

 

I can see how it would be harder if you don't have a good credit history, you could spend a lot of time applying and being rejected before you found one where you met the criteria.

[Danny_Boy]

Perhaps I'm an odd case then. I gave a broker the chance to beat the mortgage I'd found through a comparison website the last time I remortgaged and they couldn't.

A friend is currently buying a house and he's contacted a broker. We have a small bet on whether the broker will beat the mortgage I found for him, again using a comparison website.

 

I can see how it would be harder if you don't have a good credit history, you could spend a lot of time applying and being rejected before you found one where you met the criteria.

 

It's ever changing in the market, sometimes the brokers have the best deal and sometimes the banks direct have the best deal. Best advice really is to speak to a fully independent broker and also compare the market yourself that way you know for certain.

 

Regarding your last sentence that's a very good point especially since every time a lender searches on your credit file it has a further detrimental effect on your credit rating and likelihood of getting a deal elsewhere.

[mike.sufc]

 

How?

 

Are you really bad at looking?

 

I don't know how I rate my looking skills. I checked a bunch of mortgage lender's sites, but L&C found a rate 0.5% lower than I could.

 

ooh and thanks for the explanation Danny_Boy - I imagine a lot of mortgage applications don't just go through smoothly because of different situations.

Edited September 10, 2015 by mike.sufc

[lola516]

Thanks for the recommendations.

[wigwham]

Can anyone recommend a mortgage adviser that can help us obtain a mortgage? We are currently running a limited company on our fourth year with previous two years accounts third year just finished in Jan but hasn't been submitted yet.

We pay ourselves a regular weekly wage with dividends. Plus I work part time at a school.

We wanted to keep our current property which has 45k left on the mortgage of 12 year term to let out.we want to take 30k out to put down on a new properate up for 175k.

We have just been refused lending based on affordability by our current lender. This is based on the fact that our second year shows a lower amount than the previous year but the turnover was higher and we invested more therefore why the net profit was lower. I'm at the point where I don't think we can do this. Our current mortgage is not fixed so could be reduced due to interset rates being lower. I just need to find someone that knows what they are doing and we can trust.

Any recommendations would be appreciated

[Danny_Boy]

Can anyone recommend a mortgage adviser that can help us obtain a mortgage? We are currently running a limited company on our fourth year with previous two years accounts third year just finished in Jan but hasn't been submitted yet.

We pay ourselves a regular weekly wage with dividends. Plus I work part time at a school.

We wanted to keep our current property which has 45k left on the mortgage of 12 year term to let out.we want to take 30k out to put down on a new properate up for 175k.

We have just been refused lending based on affordability by our current lender. This is based on the fact that our second year shows a lower amount than the previous year but the turnover was higher and we invested more therefore why the net profit was lower. I'm at the point where I don't think we can do this. Our current mortgage is not fixed so could be reduced due to interset rates being lower. I just need to find someone that knows what they are doing and we can trust.

Any recommendations would be appreciated

 

Hi wigwham, I am a mortgage broker and I have helped quite a lot of self employed people in the past. I may be able to help you.

 

Firstly has anyone spoke to you about second home stamp duty? If you keep your existing property on as an investment you will need to pay additional stamp duty on your new purchase. Second home stamp duty on a purchase of £175k would be £6250.

 

If you want, drop me a PM and we can arrange a chat to see if I am able to assist, I should be able to tell quite quickly (by looking at your books and basic finances) if what you are wanting to do it possible. Since I deal with practically every lender in the UK if I can't help then it would be unlikely anyone could.

[wigwham]

Yes I'll PM you and no I didn't realise about the stamp duty

[LeeMo]

I recently used London & Country for a re mortgage, they are a fee free broker and were excellent to deal with every step of the way.

 

Also I think you'd have to convert your current mortgage to a Buy to Let which may carry a higher interest rate.

Edited February 23, 2017 by LeeMo

[Jeffrey Shaw]

Firstly has anyone spoke to you about second home stamp duty? If you keep your existing property on as an investment you will need to pay additional stamp duty on your new purchase. Second home stamp duty on a purchase of £175k would be £6250.

 

Yes I'll PM you and no I didn't realise about the stamp duty

Both wrong.

Stamp Duty is still unchanged at 0.5% and has not applied to property for many years.

Stamp Duty Land Tax (SDLT) is wholly different and much more complicated.

See my article at https://www.propertyhawk.co.uk/?landlords-sdlt