What deposit will we need?
5% of the purchase price is the minimum deposit required, there is no maximum amount
How much can we borrow?
This varies from person to person; it depends on a number of things, your gross income as well as your current debts such as loans and credit cards and how many children/dependents you have. You can even use DLA, Tax credits, child benefit and existing pensions as part of your income.
How much will we pay each month?
This depends on how much deposit you have and the term of your mortgage, typically you will get a lower rate the more deposit you have and the longer your term the less you will pay each month.
What are the benefits of using an Independent broker?
You will get a far greater choice via a broker than with any single lender; a broker has access to all the high street lenders as well as exclusive deals so you have more choice. In addition to this Independent Brokers are not part of any estate agents or lenders so their advice is unbiased.
How much will the legal fees be?
The cost will depend on various factors however most Independent Mortgage Brokers have negotiated favourable terms with solicitors and conveyancers across the UK which are cheaper than the majority of local high street solicitors and provide a quality service designed to save client’s money. For example no completion no fee is a standard feature of solicitors used by brokers.
Would we have to pay stamp duty?
This depends on your circumstances, first time buyers pay no stamp duty up to a purchase price of £300,000 (Outside London) whereas home movers will pay stamp duty. The first £125,000 is 0% rated, the next £125,000 is paid at 2% up to £250,000 and above £250,000 it is paid at 5% up to £925,000; above this figure you will pay a maximum of 12%.
Do brokers charge fees?
The majority of brokers do charge a fee for their services however clients benefit greatly by using the expertise and experience of a broker as well as the access they provide to the whole of the market and exclusive deals only available to brokers. The key is choose an Independent whole of market broker as not all brokers are either of these many work from a representative panel of lenders not whole of market. A reasonable fee would be £299 to arrange a residential mortgage or £199 to arrange a re-mortgage.
What questions should I ask a broker before I commit to using them?
Are they Independent whole of market? What are their fees? Do they have their own offices you can visit? (Not an estate agents office) Do they have existing customer reviews on face book? Remember, anyone can put a review on a website whereas face book reviews are real customers not made up ones.
The estate agent has advised I cannot put an offer forward on a property I like until I have seen their in-house mortgage advisor?
This is a common mis-selling technique used by some estate agents to try and get you to do your mortgage business with them. There are three downsides to this. Firstly, not all Estate Agent mortgage advisors are truly independent. They only offer from a limited panel of lenders meaning you may not be getting the best mortgage to suit your needs. Secondly, they typically charge fess in excess of £500. Thirdly, it is a conflict of interest for the estate agents mortgage advisor to know what you can borrow. If you put an offer in on a property that is under asking price, but the estate agent knows you can borrow more the likelihood is that this offer will not be accepted.