First time buyer mortgage help

[keith915]

Me and the mrs are looking at buying our first home ( a repossession ). The estate agents are saying we need to see their in-house 'independent' mortgage advisor before we make an offer for the property. I think this is bull and they're stringing us on to gain some commission for themselves. Am I right?

Have these 'independent' advisors helped any of you guys out with the best deal or do they stick with the bank that offers them the best commission?

Also any advice on particular mortgages? Seems like a lottery at the moment with which way interest rates will go..

It's all such a minefield!

 

[IQ Electrical]

Me and the mrs are looking at buying our first home ( a repossession ). The estate agents are saying we need to see their in-house 'independent' mortgage advisor before we make an offer for the property. I think this is bull and they're stringing us on to gain some commission for themselves. Am I right?

Have these 'independent' advisors helped any of you guys out with the best deal or do they stick with the bank that offers them the best commission?

Also any advice on particular mortgages? Seems like a lottery at the moment with which way interest rates will go..

It's all such a minefield!

I don't see you having any obligation to see a particular broker/advisor but having said that, some brokers can take your details and access deals from many lenders to find one that suits you.

You've got nothing to loose (other than a couple of hours) by at least seeing what they can offer while doing your own homework on deals before your meeting.

On interest rates, to quote the song 'the only way is up'

 

[Paul.M]

First part. Look at what other mortgage lenders can offer and compare it to the "independent" offer, you never know they may be the best but you really need to look around. After all if this was buying a new car or a tv you would be looking around for the best deal, same with obtaining finance.

Which mortgage you both go for goes down to your personal situation so without posting intimate details I don't think there is a straight forward answer. But saying this, now is the lowest interest rates and you would be wise to take advantage of them. Once you've got the mortgage make extra payments to reduce the total capital therefore reducing the total amount repayable, just look out for the small print on the fees charged for making extra payments. Good luck in your new home.

 

[alarm man]

Me and the mrs are looking at buying our first home ( a repossession ). The estate agents are saying we need to see their in-house 'independent' mortgage advisor before we make an offer for the property. I think this is bull and they're stringing us on to gain some commission for themselves. Am I right?

Have these 'independent' advisors helped any of you guys out with the best deal or do they stick with the bank that offers them the best commission?

Also any advice on particular mortgages? Seems like a lottery at the moment with which way interest rates will go..

It's all such a minefield!

there just trying to get your business first,dont think they can make you,but personally i think theres something morally wrong in buying a repossessed home

 

[IQ Electrical]

there just trying to get your business first,dont think they can make you,but personally i think theres something morally wrong in buying a repossessed home

Morally wrong?
It might have belonged to a crack addict or a rapist recently given a ten stretch!

 

[telectrix]

or worse, a drug dealer. proceeds of crime and all that.

 

[sparky1502]

they said the same to me until i told them i already have a mortgage offer and am quite happy with it....the thing i realised very quickly is when buying a house everyone and i mean everyone wants their pound of flesh

 

[alarm man]

Morally wrong?
It might have belonged to a crack addict or a rapist recently given a ten stretch!

or it may have been the home of a hard working family who lost their jobs(there will be more) like i say man,its a personal opinion.

 

[Mark_Burgess]

First time I got a mortgage I used an independent mortgage advisor, I paid nothing for his services his commission came from the lender, a decent advisor after taking all your info will turn the PC screen round and go through the best deals with you, so you know exactly whats going on. Thats what happened with me, if it was not for him I would not have got a mortgage as the high street banks said no to my 15K/year and the then mrs 9K.

 

[Steve65]

Firstly, you're not obligated to see or use their Adviser (every Estate Agent has access to either an in house Adviser or someone they introduce mortgage business to.)

Secondly, the commission the Adviser gets paid is on shown on the Key Facts Illustration that he/she will give you at the meeting. (Typically 0.35% of the mortgage amount.) All Advisers, by law have to tell you what commission they or the company they work for will be earning.

The advantage of using an Independent Adviser is they have access to most of the lenders (certain smaller lenders only do business direct with the client) but your Abbey's (Santander) Halifax, Nationwide etc. will all be available to your Adviser and you can compare rates very quickly and easily whereas going into each branch of a lender, being asked the same questions and spending a good hour with each is very time consuming.

Have a chat with a couple of Independent Advisers and compare what each has come up with. Ideally it will be the same lender but some Advisers are better than others and dig a bit deeper with their questions and come up with something you might not have thought of. You can then check with the lender they recommend directly to see if they are offering anything better for direct customers.

I found I got a more personal service than going through a branch as my Adviser came to my house in the evening so I didn't have to take time off work and if I had any questions, he was always on the end of the phone or via email.

Hope this helps.

 

[Smugley]

Just be informed that's all. They'll also offer repayment insurance. Think carefully whether you need that or if you'd rather overpay by that amount. The advisor may actually be able to get just as good a deal as any other independent.

Best advice we got was to take out a mortgage with an offset account attached. Then you can overpay as much as you like, which will reduce your outstanding balance, but in future, if you need a bit of cash for something like a car or extension or whatever you can draw back anything you've overpaid and effectively get a personal loan at mortgage rates.

 

[ian1511]

when buying my house independent advisor very helpful untill he started rubbing hands together when talking bout his fees,got up and walked out.low rates will only apply if u have a good deposit at least 20%,

 

[keith915]

Thanks for all your help guys. Good to get some advice from people who have been there and done it. It can be quite daunting working things out and knowing who you can trust to act in your favor. The fact its a repossession is neither here or there to me really. Just means they sell quicker and for a cheaper price. I'm not the creditor/lender putting it up for sale... I could yet have problems with other creditors turning up at my door looking wanting money from the previous resident...

The idea of an offset mortgage is brilliant, however we're looking at 85% LTV and most offsets are either around the 70% or are not available to 1st timers... We'll just have to wait and see how the mortgage advisor goes tomorrow. Like you guys said, see what he offers and if we're not happy we'll continue with the best deal we've found ourselves.

 

[alarm man]

The fact its a repossession is neither here or there to me really. Just means they sell quicker and for a cheaper price. I'm not the creditor/lender putting it up for sale... I could yet have problems with other creditors turning up at my door looking wanting money from the previous resident...

you wont have anyone turning up at the door asking for money,but the previous owners may well be left in more debt depending on the sale price etc..ive seen this when the wifes sister bought a repo,it had everthing the previous family had down to the kettle and plates,watched her mock and give the stuff away,i had to go for a very long walk to compose myself..food for thought man..

 

[keith915]

you wont have anyone turning up at the door asking for money,but the previous owners may well be left in more debt depending on the sale price etc..ive seen this when the wifes sister bought a repo,it had everthing the previous family had down to the kettle and plates,watched her mock and give the stuff away,i had to go for a very long walk to compose myself..food for thought man..

Don't get me wrong I have massive sympathy for hard working people who have lost their jobs and thus their house. The particular repossessions I have looked at have all been empty and clean. The rules regards selling repossessions as it stands are that even after an offer has been accepted, the offer amount must be advertised and the house remain on the market for a specified length of time. I believe it is 7 days. In a way its no different from a property auction, albeit a lengthy one!