Today I’m going to be sharing with you my number one tip for buying your next house – Always speak to a mortgage consultant BEFORE you start looking at properties.
Here’s why, the single most important thing to do before you start viewing houses is to make sure you’ve got your finances in place. Obviously it’s really exciting to rush out there and view properties but it’s really worth just taking a little bit of time making sure you’ve got your numbers in line first. I’ve seen it where people look round houses they simply can’t afford, conversely I’ve seen people look at houses and actually they can afford an awful lot more. So it’s essential you speak to an independent mortgage broker who has whole of market access who can put you in the best place possible so you know all your numbers and they’ll make the whole experience a lot more enjoyable.
Here are a 4 top pointers to help you on your way.
- Don’t go to a bank. Strange I know but bear with me on this. A bank can only offer 1 rate – theirs. Chances are this won’t be the best rate on the market. There are approximately 101 mortgage lenders out there, https://www.mortgagesorter.co.uk/Lenders-List.html you are never going to know which one has the best rate on your own. Think car insurance you don’t just go to one insurance company, no, you either go to He-man, the big chap with the moustache or James Corden (he’s literally in everything that guy, unbelievable the amount of things he’s in) any way where was I. , you do what we all do go to one of the comparison sites. In a nut shell this is what a good independent mortgage broker will do for you.
- Don’t pay. Let me give you a little secret. Most mortgage brokers will do this work for you for free. ‘Free’ I hear you say that means its worthless. They will do it for you free of charge because they get paid by the lender. And before you say it, it doesn’t get added onto your loan. How’s this possible? Because the lender hasn’t had to employ any staff take up premises etc they have generated the business free of charge they will pay the advisor a ‘Proc’ fee other wise known as a procreation fee. Some mortgage brokers will charge for their advice so in affect they’re getting paid twice once by you and then buy the lender. When you speak to an advisor just ask if they charge to arrange the mortgage.
- Your time is precious stop wasting it. These guys are experts in their field a good advisor will put you in front of the right lenders. You can spend a month of Sundays banging your head against a press 1 for this, 2 for that call centres – Don’t bother. I have done this and got the T-shirt. A good mortgage broker will match up you personal situation with the correct lender. For example if your self employed some lenders will want everything including your inside leg measurements others will take a broader view. The point is a good mortgage broker will know which lender will suit your circumstances the best.
- Bigger isn’t always better. Many larger estate agent will have in house mortgage brokers, often the issue here is that they will be tied to a small panel of lenders which means they will only be able to offer you a limited choice. And guess what these lenders are normally the ones that pay the agent the highest Procreation fee. So, bestsellers to seek out small independent brokers who have access to the ‘whole maket’ i.e. all mortgage lenders then you know for sure you’ll be getting the best deal possible.
We have details of great brokers that can help. If you’d like more information then get in touch on 01789 414222 or contact us at info@movewithedwards.co.uk
Happy hunting
Edward.
