Mortgage brokers - can they work miracles?

[loislane9]

DH and I are both self-employed. After a hard year where we’ve both seen our incomes dip by 30-50% (thanks, COVID), we are hoping to sell up and downsize to cut our mortgage payments in half. We don’t have any debts (other than the mortgage) and our credit scores are good. We have two DC.

Due to our complex financial situation I’m considering using a mortgage broker and am curious - are they really that much better than doing it yourself? I’m just so scared we won’t get a mortgage and am wondering if a broker could help.

And yes, contact one soon! They can get your mortgage in principle agreed so that you’re ready to go just as soon as your house sells and you find a property.

One million percent - a good broker can definitely work miracles. I would never try to get a mortgage without one. £500 fee for ours, but money well-spent, he was worth his weight in gold, (Fee only payable after sale finishes.)

We used a broker this time due to complexities and they got us a better deal than the best high street rates despite that

Speak you your current lender first - they may be able to offer you an 18months period at interest only or something like that to save you from having to move !

Ensure the broker is whole of market. I approached 2 last year and neither could find me a deal/ get me the level of borrowing that I could get through going through my bank directly- Halifax. I earn 3/4 of my income through self employment though I do have a part time paye job, so it was quite complicated. I had also only been trading for 13 months also and both brokers said I needed 2 years of accounts which I didn't have.

They always used to have a reputation as a service you only used if you had dodgy financial situations but now you get so much better deals from them than going straight to the bank.
I would never use anyone but Knight Frank finance

We are in the process of applying for a mortgage at the moment as a limited company. We are through a broker as I wouldn't do it without one especially since covid as things have tightened up.
He seems good and is very accessible so here's hoping!
We're applying to hsbc which I am not sure about, for no real reason I wouldn't be sure about anyone until I have an offer!
It's very stressful as we have an offer accepted on a house and ours is also sold so everyone is relying on us!!

Also I contacted him before the house was on the market and went through things and gave him all the documents he asked for. My house was sale agreed in Jess than a week and we then were sale agreed on our property the day after. I called him and he submitted the application the same day as everything was in place.

@ChittyChittyBoomBoom and anyone else willing to share - would you mind sending me a PM with the details of your mortgage broker?

@loislane9

Thanks everyone. Are mortgage brokers so good that they can potentially get you a mortgage even if you have a complicated financial situation (like us!) or if you’ve failed to get one yourself? I’m so anxious about it all.

I don't think they can work miracles, but if you get a good whole of market broker they will know the criteria for different providers and which ones may be worth approaching - so it takes the stress out of it and reduces the risk of getting a flat out no

@LotsOfTrees I’ve sent you a pm

If your circumstances are complicated and / or you are maxing out affordability then it makes sense to use one. Friends of mine, one of the couple had been bankrupt previously, used one. It was the only way they could get a mortgage.

I got quotes from the broker the EA recommend and they were worse deals than I could find directly. I'm permanently employed in a secure job, had a 60% deposit and only wanted to borrow about half of what my salary would allow (two times my gross annual). I also have a good credit rating. My circumstances are not in any way complicated or frowned on by the lenders, so it didn't make sense to use one.