Reply to: Mortgage Advice - First Time Buyer (shall I use Broadbench?)

[northernladuk]

We've recently taken out a mortgage through Martin @ AS Financial, I believe he sometimes pops up on here. They were great, and best of all if your mortgage is above a certain amount (I think > £250K) you won't have to pay any fees.

If Martin has contractors applying for mortgages over less than 250k he's obviously been lumbered with the arse end of our community.. unless they're putting the other 500k up cash of course.

[Martin@AS Financial]

We've recently taken out a mortgage through Martin @ AS Financial, I believe he sometimes pops up on here. They were great, and best of all if your mortgage is above a certain amount (I think > £250K) you won't have to pay any fees.

Thank you Mr Web Dev - that is really kind of you.

[MrWebDev]

We've recently taken out a mortgage through Martin @ AS Financial, I believe he sometimes pops up on here. They were great, and best of all if your mortgage is above a certain amount (I think > £250K) you won't have to pay any fees.

[Power Mortgages Ltd]

...but the interest rates they are quoting are around 2.2%. Broadbench quoted 1.4% over the phone but stated that it may change when they do the AIP, which they would like to charge £100 for....

I would be very wary of this.


Yes different lenders charge different rates but that is a very large swing (0.8%!) assuming they are basing the figures on the same loan to value. That sounds like they are quoting you either a market leading rate with a lender who simply wouldn't entertain lending to a contractor in the hope that you are reeled in by this fabricated rate knowing that once they have your £100 you would be less likely to go elsewhere when they do turn around and tell you the rate will actually be 2.2% or they are quoting you a lower loan to value rate (25% deposit maybe) when you are actually looking to put down a 10% deposit.


I have never personally heard of the company in the contractor mortgage lending market place. That's not to say they do not deal with contractors but specialising in this field, I am aware of who our main competitor companies are and have never heard of this Broadbench company.


I'd definitely not agree to pay someone £100 for an agreement in principle either - there is not even a guarantee it will accept! I'm pretty sure all the contractor mortgage specialists will provide you with an agreement in principle free of charge. Brokers that do charge a fee for their services normally only do so either on completion of the transaction (e.g. once you have purchased the property or completed on the remortgage) or upon submission of the full mortgage application (once you have had an offer accepted on the property you would like to buy for instance), I have never known a firm to charge for an agreement in principle and especially one who says the rate may change after the agreement in principle. To me, that sounds a bit iffy.

Did they even tell you who the lender was that they would be applying to or provide you with an illustration for the mortgage? If the answer to that is no then run for the hills and avoid them like the plague.

[northernladuk]

Metro Bank are one of the few lenders that assess income based on your day rate, they just need copies of your current and previous contracts.

There are loads of them now.

[rocketjet]

Interesting. Will give them a shout on my remortgage.

Huge fan of metro for their business accounts.

Metro Bank are one of the few lenders that assess income based on your day rate, they just need copies of your current and previous contracts.

[MrButton]

Get in touch with Metro Bank and pay no additional fees. I’ve just used them and secured a mortgage after 2 phone calls.

Interesting. Will give them a shout on my remortgage.

Huge fan of metro for their business accounts.

[rocketjet]

Get in touch with Metro Bank and pay no additional fees. I’ve just used them and secured a mortgage after 2 phone calls.

[SteelyDan]

Sorry, made a change and forgot what account I was on. Nothing to see here.. move along.






but really it was just me as a full time admin/mod [& not really a contractor at all] removing freelancer financials hyperlink.

FTFY

[WordIsBond]

I totally believe you.

[northernladuk]

Well, this is interesting.




NLUK is "Contractor UK"????

Sorry, made a change and forgot what account I was on. Nothing to see here.. move along.






but really it was just admin/mod removing freelancer financials hyperlink I put in.

[WordIsBond]

Well, this is interesting.

EDIT : we've discussed mortgages and providers ad infinitum on here and it appears Broadbench have never been mentioned which I think gives you your answer.

Last edited by Contractor UK; Today at 09:04.

NLUK is "Contractor UK"????

[zonkkk]

... went with London and Country who were much more on the ball.

Good to know they deal with contractors too. I used them a couple of times when I was an employee and their services were free of charge.

Do they charge a fee for contractors?

[kaiser78]

Yes thanks! It was well worth asking then. I've tried super contractors who are happy to provide an agreement in principle free of charge but the interest rates they are quoting are around 2.2%. Broadbench quoted 1.4% over the phone but stated that it may change when they do the AIP, which they would like to charge £100 for. It seems like they might just be quoting a low interest rate to real people in. Will try Freelancer Financials today.

Thanks for all your help!

Most contractor mortgage brokers do this and you can even do online as well - if they want to charge for AIP go elsewhere. Super Contractors was pretty useless in helping me out, to went with London and Country who were much more on the ball.

[GasmanLS7]

Yes thanks! It was well worth asking then. I've tried super contractors who are happy to provide an agreement in principle free of charge but the interest rates they are quoting are around 2.2%. Broadbench quoted 1.4% over the phone but stated that it may change when they do the AIP, which they would like to charge £100 for. It seems like they might just be quoting a low interest rate to real people in. Will try Freelancer Financials today.

Thanks for all your help!