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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

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

73 replies

OnenamedPeter · 02/09/2015 19:48

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.

OP posts:

Twindroops · 03/09/2015 11:46

^^ I mean using one recommended by a friend or family member- sorry can't seem to get my words out!

skyeskyeskye · 03/09/2015 12:36

I have always used an Independent Broker and it has always been worthwhile. i have never paid a fee as they worked on commission. They have done all of the hard work in finding an affordable mortgage and managed to get the maximum loan available.

Definitely worth doing as you will probably end up being able to borrow more than if you try to source your own mortgage

caker · 03/09/2015 12:50

Yes use a broker but I don't recommend London and Country, we used them a few months ago and they really messed us around, lied and jeopardised our move when the buyer ran out of patience. I previously used a broker I paid for and will do that next time.

GayByrne · 03/09/2015 13:19

Jim Wheatley at London and Country. Absolutely outstanding when we were left high and dry.

Beaniebeemer · 03/09/2015 13:49

I bought my house 2.5 years ago. My partner has a high commission/bonus element to his salary and I too was needing a lender that would lend based on 100% of this. After a lot of digging about, speaking to brokers etc I discovered that Santander were one of the only ones that would lend based 100% of bonus/commission. I would strongly recommend going to see one of their in branch advisors. I found a better deal in terms of arrangements fees. A broker kept pushing Abbey who also offer 100% lending against bonus/commission. Abbey is Santander's broker arm of the bank. Going direct to Santander saved me £1300 and had a slightly better interest rate.

Want2bSupermum · 03/09/2015 13:55

I always use the same mortgage broker for buying homes or refinancing them. He has been able to get deals that I would never have found and his fee is 1% of the loan amount. I am happy to pay it because he takes care of a lot of the admin for me. He has been able to push the bank in a way I can't as he brings them repeat business whereas little old me is a one time deal.

Def shop around and compare. No fee means you just pay more for your mortgage. I much prefer paying the 1% fee and I have gotten some gems like a 10 year fixed rate for 2.5% on one property.

Katie2001 · 03/09/2015 13:58

I used an independent broker for my mortgage 2 years ago because I had credit glitches and he was able to find the mortgage for which I was likely to be approved. In terms of time to complete all the paperwork, as well as find the right mortgage, I think it was £300 well spent. As the fixed rate has now ended, he has done the new fixed mortgage free of charge for me, as he got a fee from the Bank who supplied the mortgage. Would recommend every time.

Marynary · 03/09/2015 14:12

I have always found very good deals by doing the research myself. I am sceptical that in this day and age (with the internet) that a mortgage broker can do better. I think it is inevitable that people who have used one will say they are worthwhile but what do they have to compare it with. It is probably worth it if you don't have the time and/or skills to search the market yourself to find the best mortgage though.

HeadDreamer · 03/09/2015 14:43

marynary I found the same. I do a price comparison. Then look on the ones that don't do brokers like HSBC and first direct. When I then talk to a broker, they typically can't beat the offers I found. I went with HSBC and FD for my last 3 remortgages.

CityDweller · 03/09/2015 19:37

I'd use one in your situation. Our situation was more straightforward than yours, and I was stunned when our application (directly to the Post Office - avoid at all costs, is my advice there) was turned down on affordability at the 11th hour. Nearly derailed our house purchase. I found a 'whole of market' broker, via a poster here on MN, who was absolutely brilliant. He worked incredibly hard to find us a new deal, with a provider who would give an offer quickly, and at the same time kept the estate agent, who was giving us all sorts of grief, happy. Completely and utterly worth the £350 it cost us. I'd use him again in a heartbeat. Happy to recommend if you pm me.

(p.s. I had earlier approached London and County and while I got good advice on my initial phone call, trying to get through to the same person again proved completely impossible. So I went with this other broker instead)

BravingSpring · 03/09/2015 20:17

I saw a mortgage advisor this morning, he works on a fee basis rather than commission, about £395 for the full service, the rates he has access to are much lower than any I could find myself on-line.

chocolatespiders · 03/09/2015 23:02

Where abouts in the country are you city,?

Bearbehind · 04/09/2015 05:43

Mortgage broker aside- wanting 5 to 6 times your income based on including 100% of a non- guaranteed bonus with 3 dependants is your biggest hurdle.

Are you aware of the MMR restrictions which came into force last year meaning that income multiples are no longer really relevant (other than capping what you can borrow) as its all based on affordability.

Have you put your details into the mainstream lenders online calculators to see roughly what you can borrow?

I think your chances or getting exactly what you want are slim to none but a broker is more likely to find the best deal you'll get- many don't charge as they get paid by the lender.

UngratefulMoo · 04/09/2015 06:10

My mortgage broker was also completely brilliant, but it can go either way! We used GHL Direct and the guy just got it organised for us. So much paperwork and hoops to jump through - I don't think we would have managed it otherwise. We found them in a really random way - we filled out a mortgage comparison thing on either compare the market or one of those sites, and at the end you could click to request contact from a broker. I took a chance - totally worth it!

sleepyelectricsheep · 04/09/2015 06:58

I would recommend at least getting a quote from.London and Country.

They are both free and independent. We've used them three times and they were great.

They're often recommended by the Guardian / Observer (or at least they were last time we were looking at mortgages).

They will give you a no obligation quote so you have nothing to lose.

I wouldn't even consider going with the estate agent recommended one. They're very unlikely to be the most competitive. IMO.

Original poster

OnenamedPeter · 05/09/2015 12:56

Thanks everyone for your experiences and recommendations.

Ebayaholic - that info was really useful. We do have a 25% deposit so hopefully that will make us contenders for Interest Only. We could also maybe do part interest only part capital repayment.

I think we could do 4.5 x income if 100% of an annual bonus was included. We have been in jobs for 8-9 years so - it's a long shot but I hope we're in with a chance.

OP posts:

MovingOnUpMovingOnOut · 05/09/2015 13:31

100% annual bonus is possible if you have three years as evidence where they will take the average. Principality BS and some others will do that and go up to 4 or 4.5 x joint income.

But none of them will do interest only since the mortgage regulations changed for anything over 50% LTV because they can't. You could go for a longer term to help reduce the payments but it would be capped at retirement age which is not 65.

What sort of size mortgage do you need? If it's large I'll put you in touch with my broker who is amazing. If it's little then it's not worth the fee for her and they'll charge you a fee.

Realistically if you are going to be able to do it you'll need a good broker. I wouldn't go with the estate agent's one because although there is supposed to be a Chinese wall between the broker and the EAs that's never been the case in my experience and you don't want the EA and therefore the vendor knowing all your financial info and trying to squeeze you for that extra £5k or whatever.

MovingOnUpMovingOnOut · 05/09/2015 13:34

Some smaller lenders who can tend to be more flexible in their terms (often building societies these days) can sometimes have caps on the loan amount that might be relevant in SW London. Eg they will only lend up to £500k or £250k on particular products or LTV... or just generally.

Junosmum · 05/09/2015 13:58

I would never use a paid one, however thoroughly recommend London and Country - they are over the phone/ email only and don't charge. They get paid by the mortgage provider, but cover 97% of the market and the cost is not added to you over the term of your mortgage (we checked by going straight to the bank - they couldn't match the deal L&C gave us).

We had some very specific circumstances last time we were looking to remortgage, and London and Country were great. They did all the ringing around and came back to us with the only 2 lenders prepared to lend to us with our circumstances.

Longdistance · 05/09/2015 14:07

Try The Nottingham Building Society. They do whole of market mortgages, and the service is free.

Bearbehind · 05/09/2015 14:14

OP, what is your plan for the repayment of the capital if you choose an interest only mortgage?

You have to provide evidence of how you will repay the balance when you take out the loan.

It sounds like you just want IO now to keep the monthly repayments down and if that's the case you have no chance aside from the other stumbling blocks of needing to borrow more than you'll be able to demonstrate you can afford

Whatthefoxgoingon · 05/09/2015 15:28

You've got no chance without a broker, and a very slim chance with one. I presume you have 3 kids? All childcare expenses (plus other expenses like cc debt) are now taken into account. Unless your salaries are very high and you have a hefty deposit, you will struggle.

redstrawberry10 · 05/09/2015 16:31

I went to one when we got our first mortgage. The trouble is that they charged a 500 pound fee (fine), but then they couldn't find me a mortgage better than one I had already found. They had said they get exclusive deals.

Just depends I think. See what you can find and go to your favourite broker and ask if they can beat it.

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