Consider using a Mortgage Broker!
Firstly can I say how delighted we are to support Emily and York Mumbler. We’re big fans of MUMbler in the office and given most of us at Your Move Anscombs have little ones, it’s a great place for hints, tips and reassurance that we are not the only ones who have to function on next to no sleep sometimes!
For our first blog we wanted to offer some advice on how to move house or buy your first home.
Before you have valuations, put your house on the market or make an offer on a property, the FIRST thing you should do is check into where you stand for mortgages.
At a basic level, you need to at least know:-
· Based upon my earnings and outgoings how much can I borrow
· How much will this cost me.
· How much deposit do I need
· What fees are involved
You could talk to your bank, but (obviously) we would recommend you talk to a broker! The question that needs answering is WHY should you use a broker and what extra value can you get from a broker…..Here are some of the reasons in our opinion…..
· A broker works on your behalf, not for a specific lender. If you talk to a lender directly, they will only advise you on their mortgage products. i.e. The Halifax advisor will only advise you on Halifax mortgages and Halifax criteria. They won’t tell you about Nationwide/Barclays/NatWest/Santander mortgages etc. A broker will take down your details and from a wide range of lenders, will tell you what they believe is the most appropriate deal for your needs. Just because your own bank might not lend you what you need to move house, doesn’t mean every other lender works on that principle. The lending ranges can be massive for buyers with children. As an example some lenders now deduct childcare costs and pension contributions like a debt whereas other lenders do not. Your broker will aim to find a product which is the “best fit” for your situation.
· Your broker should however balance this with honest opinion on what they feel is the maximum you should look to pay per month by doing some detailed budget analysis. Nobody wants to be a slave to bricks and mortar and your broker will advise on what your appropriate budget should be and how you should protect yourself so you can always make the payments should you suffer a negative change in circumstances (illness, unemployment, death of a wage earner etc).
· Your broker will talk to you in plain English and make sure you fully understand the product you are applying for. They will explain the different types of mortgage available, the different repayment methods etc.
· They will help you obtain an Agreement in Principle before you offer on a property. Virtually every estate agent will want to see a copy of this document before they present your offer to their vendor, and if successful, withdraw the property from the market and sale agree to you.
· They fill all the paperwork in for you and “project manage” from initial appointment through to getting the keys and moving in. i.e. if you hit a problem due to survey and need reports such as Damp and Timber report, Electrical Report, Drains report etc, they will often have many years experience on how to resolve these issues.
· Often your broker may have access to exclusive or semi exclusive dealsthat are only available in the broker market. i.e. potentially cheaper rates and fees than going direct to the lender.
· A good broker will look after you for life. They will remind you when your deal is up for review and then see if they can now get you a better deal. You don’t have to be moving house to use a mortgage broker. They often specialise in all other things mortgage related, such as remortgages, buy to let, let to buy etc
Hope this was of interest to fellow Mumblers. Please feel free to CONTACT ME with any comments or questions you have.
Roger Parry
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Our initial mortgage consultation is free. We will charge a fee of £499 on mortgage application. The amount we will charge is dependent on the amount of research and administration required. We are however happy to offer a 20% discount on the broker fee to anyone who mentions that they saw us on York MUMbler. Terms and Conditions are available on request. © YOUR MOVE – Your Move is a trading name of your-move.co.uk Limited, registered in England at Newcastle House, Albany Court, Newcastle Business Park, Newcastle upon Tyne NE4 7YB (number 01864469). your-move.co.ukLimited is an appointed representative of First Complete Limited, which is authorised and regulated by the Financial Conduct Authority (FRN:435779) for mortgage and non-investment insurance advice. In general Buy to Let mortgages are not regulated by the Financial Conduct Authority
