Tell me about mortgage brokers

[binkylilyput]

First time buyer

Did you get a mortgage broker?

How much did they charge you?

Would you recommend them?

Did they save you a heap of cash?

[SpringTime]

Yes, they saved us about ?2000 and charged a ?500 fee. So still ?1500 up and more importantly bags of timed and hassle saved by avoiding going direct to lenders, and further time saved and hassle avoided when dealing with the chosen lender.

[Mark]

Yes, ours was worth it and have now used him for about 15 years with remortgages, moving house etc. http://www.eastdulwichforum.co.uk/forum/read.php?30,1775047

His charge has varied over the years but he's alway up front about it (he has to legally I think). It's not just the cash but as SpringTime says it's also the hassle, when you're buying your first place you need someone to help take the hassle(s) away.

[bobbsy]

Also, think mine was ?400 (plus they get a kickback from the lender) but the ease and trouble saved is more than worth it. Has an inside line to the lenders and advises every step of the way.

[binkylilyput]

Ah this is interesting, thanks! I'd heard that some brokers have access to mortgage rates no otherwise available publically.

But then I also read articles on the internet (the source of all truth)suggesting going to a broker that doesn't charge a fee.......because they get paid also by the lenders?

Would this then mean that a broker who doesn't charge fees will have a more limited range of recommendations for mortgages as they are likely to be biased in favour of recommending a lender that they have an agreement with?

Or maybe I am totally misunderstanding this whole process?!

[Mark]

They will all charge a fee

Some brokers charge a straight fee which might be offset by the mortgage e.g. if you bought it direct the mortgage would cost your ?100,500 but if you bought it through broker it would cost ?100,000 + ?500 broker fee

Most have access to a system that searches mortgages, a bit like a comparison engine, I believe they don't get commission but they legally have to tell you how they get paid. I'm not sure of the limitations of their systems but I'd suggest you do a search with a comparison site* however they maybe limited as they are based on commission.

A good broker will tell you things like "if it's a buy to let mortgage get one with a mortgage arrangement fee, you can offset that charge as an expense". Of course this depends on your individual circumstances.

Recently I found my best mortgage online, then checked with my broker and he came back with the same one at the same price so I did it through him anyway.

*Always read https://www.moneysavingexpert.com/mortgages/

[Houseoflego]

Do your own research, also ask a broker, then go for whichever is the best deal.

[mancity68]

The other thing I found as a first time buyer and finding the whole process really stressful and confusing was that it was brilliant to have some one hand holding. Mine got me a great deal and charged no fee, he was upfront about the fee he got from the lender as an introduction. He's also been great at remortgage time too.

[monkeyspanner]

Do you only pay the fee if you take their mortgage? In houseoflego's example, if you find the best deal does broker not get paid?

[mancity68]

I didn't pay mine a fee. He got a cut from the lender, presumably of the mortgage application fee I paid to the lender. If I hadn't taken a mortgage through him, I wouldn't have paid him anything.

[Mark]

Just to clarify, your broker will charge a fee, it just depends if you pay it or the lender pays it. So if you find a better deal than your broker don't use them and so don't pay them.

[HeadNun]

I didn't pay mine a fee either. I spoke to so many brokers - some who said I couldn't borrow a penny, and all of whom charged a fee. Then I found my lady and knew I could trust her immediately. She answered all my emails promptly, even ones which weren't about mortgages, but asking for general house-buying advice. I'm happy to pass on her details to anyone who's looking.

[binkylilyput]

So next question......someone suggested to me that I use a Conveyancer rather than a Solicitor as they are cheaper!

Does this make sense?

This property buying malarkey is complex isn't it?!

[Mark]

Conveyancer might be cheaper but you'll get a better service with a solicitor (can only work for one side, must disclose any backhanders, probably has had more training/experience etc).

If you can get a recommended solicitor then go for them over a conveyancer, you might pay a few hundred quid more but it's worth it. I would recommend Glazer Delmar on North Cross Road, they're not the cheapest solicitors but they are very, very good. If your vendor on in the chain is using a crap conveyancer then a good solicitor can help.

I recently remortgaged and the mortgage company used Enact Conveyancing, they were utter rubbish and I even had to get compensation from them, the pointless delays they caused meant I was paying over the top on the mortgage. Do not use them, even though they might be cheap.

You may find your purchase goes though smoothly and you end up thinking, I could have saved ???? using online cheap conveyancer but it's a gamble but as a first time buyer I think a solicitor would be best. Speak to 2 or 3 local solicitors, get a feel for them, recommendations if you can and choose one.

These might be useful:

https://hoa.org.uk/2018/04/questions-ask-conveyancing-solicitor/ (a useful website for you and your questions :-) )

http://www.firsttimebuyermag.com/top-8-questions-first-time-buyers-ask-their-solicitor/

https://www.rightmove.co.uk/news/top-questions-homebuyers-ask-solicitor-buying-new-home

and good old Martin Lewis https://www.moneysavingexpert.com/mortgages/house-buying-guide

[SpringTime]

Yes, I'd go for proper solicitors over cheap conveyancers any day. Every transaction is different so the service will be different every time regardless as to the quality of your own reps - you can't choose your vendors' personalities, their onward agents or any other parties' solicitors who happen to be involved, and pretty much every property is different as well - so best to have the best people working for you to help things happen. Can't speak for everyone but I've had good experiences with several firms inside and outside of town - Bishop and Sewell, Glazer Delmar, Meaby and Co, Beverley Morris, Freedman Green Dhokia, Garner Canning, Irwin Mitchell in Birmingham, and many more I've forgotten. The prices vary. Avoid list available on request.

[PeckhamNicola]

I would definitely go for a solicitor. People we bought from used a conveyance miles away. They were rubbish and it added loads of time and hassle. Have used my solicitor 5 times over the years and she does a proper job. When I'm spending that much, I find that extremely reassuring. I don't think it's something to skimp on.

[binkylilyput]

Yep, it does seem a solicitor is the way to go and I?ve been recommended some good ones!

Now I?m deciding to go with a 2 year or 5 year fixed interest rate. Have been weighing up the pros and cons- there isn?t much difference in monthly repayments.

I know 2 years has been the norm but I?m reading a lot about how 5 year is now a better bet. Something about interests rates looking like they?ll rise over coming years? Possibly even related to Brexit.

Anyone have a view or good knowledge of this?

Thanks everyone for your ongoing suggestions on this!

[Mark]

If you're definitely going to stay in your house for the next 5 years, get the 5 year deal. If there's the possibility of moving out then consider the 2 year deal. You get more flexibility and more risk with a 2 but more stability with 5.

Unfortunately the perfect decision requires a crystal ball, so make an informed decision now based on what you know now. Don't put much weighting on your predictions of Brexit, elections, house prices etc to make that decision as no one knows what they will do and no one knows what effect they'll have on your mortgage repayments in 3/4/5 years.

Depending on the charge to get out of your 5 year mortgage early, it could still be cheaper to switch early - see here for an example https://www.moneysupermarket.com/money-made-easy/is-it-worth-paying-a-fee-to-get-out-of-your-mortgage/ but of course without that crystal ball you don't know what's going to be available in 3/4/5 years!

A good broker will clarify your mortgage fees and charges.

[alex_b]

Ask your mortgage broker about the early redemption fees on the 5 year deal. In the unlikely event that mortgages get cheaper then if you have no redemption fee you can always switch.

Also work out exactly how much extra you'll pay for the 5-year fix and compare that to the extra cost of remortgaging in two years (e.g. arrangement fee, broker fee).

The unknown is what will interests rates be doing in 2-years, will you be able to remortgage at the same rate or will it be more expensive? I think the one certainty is that the base rate will rise (it can't really fall). My guess it will rise slowly and that if it rises by more than 0.5% there will be pressure for banks to not pass on the full rise. But that is just a guess.

Your mortgage broker should be setting this all out for you.

[Mark]

Thought this might be of intetest...

Should you fix your mortgage rate for 10 years?

https://www.which.co.uk/news/2018/06/should-you-fix-your-mortgage-rate-for-10-years/ - Which?

[AnnGarcia]

I once worked with one of the conveyancing solicitors that I?ve come across on this comparison website. The rate that the solicitor provided to me was actually based on the particular situation I?m in. At that time, I needed help in choosing the right offer and accomplishing every step of the house buying process. Upon discussing these requirements, the solicitor gave me an estimated price for the services that I needed. Also, I was able to save some money from hiring a professional solicitor by having a fixed budget before even availing of their services. Setting a budget will prevent you from spending too much, so I highly recommend that you do that before anything else.

[AnnGarcia]

I once worked with one of the conveyancing solicitors that I?ve come across on this comparison website: https://www.conveyancingindex.co.uk/conveyancing-solicitors/. The rate that the solicitor provided to me was actually based on the particular situation I?m in. At that time, I needed help in choosing the right offer and accomplishing every step of the house buying process. Upon discussing these requirements, the solicitor gave me an estimated price for the services that I needed. Also, I was able to save some money from hiring a professional solicitor by having a fixed budget before even availing of their services. Setting a budget will prevent you from spending too much, so I highly recommend that you do that before anything else.

[AnnGarcia]

I once worked with one of the conveyancing solicitors that I?ve come across on this comparison website: https://www.conveyancingindex.co.uk/conveyancing-solicitors/. The rate that the solicitor provided to me was actually based on the particular situation I?m in. At that time, I needed help in choosing the right offer and accomplishing every step of the house buying process. Upon discussing these requirements, the solicitor gave me an estimated price for the services that I needed. Also, I was able to save some money from hiring a professional solicitor by having a fixed budget before even availing of their services. Setting a budget will prevent you from spending too much, so I highly recommend that you do that before anything else.

[mariamenendez]

Hello - I'm looking for a mortgage broker, and saw your message on the east dulwich forum - is it possible for you to send me details of the broker you used?

Many thanks

Mel

[SpringTime]

mariamenendez Wrote:

-------------------------------------------------------

> Hello - I'm looking for a mortgage broker, and saw

> your message on the east dulwich forum - is it

> possible for you to send me details of the broker

> you used?

> Many thanks

> Mel

PM'ed you Mel.