To avoid using a mortgage broker, or are they worth their salt?

[OnenamedPeter]

At 41 years old we are looking for a new mortgage. We will need a particular type of lender to get the mortgage we need.

We're both 41 so less than 25 years before our 'retirement age of 65'.

We need at least 5 or 6 times our salaries ... does this even exist anymore?

We need a lender that will consider 100% of an annual bonus that I receive at work. Not 50% as most lenders do.

We could really do with an interest only mortgage for the first couple of years.

I know this sounds completely unrealistic but we currently have 5 of us crammed into a 1.5 bed ... and it's getting impossible. We desperately need more space but loathe to move to a less expensive area as we're right next to a great primary.

I'm also curious to know from anyone who has gone through this recently, how many months bank statements do they look through to check your expenditure? 3 months/6 months?

Please come and impart your wisdom! Feel completely lost and confused with the whole thing.

We didn't use one but we have a simple mortgage. We can't imagine any bank won't lend to us. Neither the broker recommended by the EA nor London and county offer a better deal than direct with bank. And you have to pay a broker fee. Our mortgage was done online and approved within 2 weeks.

Underwriter here....lenders are capped at max 4.5 x income for 85% of their business in London so you will struggle. Plenty lend to age 75 using current levels of income as standard and several smaller building societies have no max age limit at all. If you go for a five year fixed mortgage you will be able to borrow more as there is no regulatory requirement to stress the monthly payment to take account of potential interest rate changes. Interest only is niche now and not available at higher loans to value, definitely not over 80%. 100% of bonus may be acceptable if you have been in your job for several years. You do need a broker.

Yes you should use one. I can recommend the one we used in sw London if that helps? He's independent. Don't use the EA's one.

Yes - we are a similar age and used one. He found us a deal very quickly which allowed us to make an offer very quickly on a house we otherwise would have lost. Not only that he gave us some advice that will mean we save the cost of his services in the first year. Also as first time buyers he has really helped us far more than our solicitor. But to echo a pp, max we could get was 4.5 x our combined income.

They are brokers, not wizards. I think will struggle at 5 times income. 6 times? Interest only for first two years? Forget it.

A good broker is worth it but I wouldn't pay up front. They get paid by the mortgage company. That said I have had pretty massive mortgages so plenty of commission there.

Another recommendation for L&C

Have a look at moneysavingexpert. He's got lots of good tips on remortgaging and it's where I found out about L&C.
www.moneysavingexpert.com/mortgages/

It seems odd that mortgage lenders are still considering income from Tax credits ( as pp says they did for her )when they are due to be slashed next year. I wonder if this will change?

Mine was brilliant, although I had a straightforward application I couldn't be arsed searching myself for a deal he was recommended to me by my solicitor

Have you thought about what repayments you can afford? As that's the important bit.

Interest only has been phased out, but our mortgage (taken out last year) is repayment as to 1% and interest only on the other 99%, so banks do have ways of getting around it.

We used L&C as first time buyers and they were able to get the mortgage company to extend their offer past the closing date when we couldn't complete in time.

Definitely worth seeking out an independent company rather than using a tied agent.

I used a broker due to being on fixed term contracts, and tbh I would do so again because he got me a good deal and saved me an awful lot if chasing around for the £300 I paid him. I think in the scheme of things it's not a huge expense, given that you'll be spending hundreds of times that on the mortgage.

Extra money?
My broker doesn't charge and he's brilliant.
See if you can find one that isn't fee based.
There are plenty out there.
And yes, they are worth their salt! They can see deals we can't.

I used "Which?" Mortgage advisors, it was all done over the phone and by post. They are completely open and will tell you if you can get a better deal going direct to the lenders yourself, they also tell you how much commission they get. You only pay a fee on completion of the mortgage and up until that point everything is totally free with no obligation, their advice is excellent, they can tell you which lenders are most likely to approve you and can approach lenders for feedback on your application without risking an official application being turned down which affects your credit rating etc
Fully recommend them! You can ring them for a free chat

Another L&C recommendation here...

Also saying L&C We needed a mortgage based on a job that DH hadn't started yet and they found us one.

Very good service, hassle free and no payment.

Yes we used one 2 years ago. It didn't cost us any extra. She communicated well and worked sensible hours inc evenings do you could speak to her afterwork. She also got things moving if there was a hold up. She came recommended by the house builder and was very useful at dealing with the builder and their ways.

We have never used one but shopped around ourselves and asked friends in the know if need be.
However in your case as it isn't run of the mill, definitely worthwhile.

They are brokers, not wizards. that has made me proper laugh!

I used a broker for my last mortgage, and will definitely be on the phone to him for my next one.

I'd recommend Which as well, fee was about £200 I think. All over the phone and they found us a mortgage while I was on mat leave.

We have used London and Country twice. Highly recommended.

I'm currently buying my first house (so clueless) and my mortgage broker has been amazing. Cost £250 one off fee and he's got us a brilliant 5 year fixed, and the fee will include him shopping around in 5 years, making sure we've always got the best deal etc and for future moves.

Would reccommend 100%.

We used Savills when we bought our first house after a random conversation at a Ceroc workshop with a LL who used this particular broker and told me to mention his (LL's) name. Got a great deal but still paid about £600 (instead of £1200 about 10 years ago).

This time around budget was tighter but we're already Which? members, saw a flyer in their magazine and we used them. They were excellent, very thorough and helpful with my random questions and only cost about £200. Got us a great deal which was brilliant as DH is a Company Director so it's not straight forward for us. Plus we also needed a 90% mortgage.

Definitely find your own (not connected with the Estate Agent), then really take the leg work out of it and just present you with the details and an application form. The rest is done by email or post.

I have one I could recommend by pm, I would definitely recommend using one, and going either by recommendation, or having an initial chat with them on a fee-free basis to see what they think and what you think.
Buying a house is the biggest purchase you will ever make and I think its well worth getting professional help with.