Reply to: Free mortgage advice?

[FIERCE TANK BATTLE]

Grats on sorting it out.

I use a mortgage broker that works for an estate agent. He is a top bloke and doesn't charge fees. Has no issue with me applying as a contractor, knows what documents to ask for and what he needs.

I compared the mortgage offer he put together with if I had gone direct to the lender and it was identical, so not being ripped off.

Don't see the point in paying.

[Mordac]

What is this mortgage thing you are all talking off? I thought this was only something perm workers had?

Mortgages are for people who don't live in caravans...

HTH

[Carm F]

UPDATE -

Everything now sorted, with no broker fee!

The valuation of the property was completed yesterday and I have just heard from my broker that the mortgage has been agreed, I should have my formal mortgage offer within the next 3 days.

If I am allowed I will happily share their details here (not sure if it breaches anything?)

Didnt pay any fees to the broker and have an appointment next week to review my current life insurance. The deal is better than what Santander had previously agreed for me aswell.

Chuffed is an understatement.

I must say a thank you to both Martin and Gordon also for their messages.

[Hobosapien]

Bottom line is: Don't have debt. Pay off what little you have and quickly.

Alternatively, use debt such as a mortgage while it is historically cheap and make sure you are able to comfortably afford it if interest rates return to normal. Then pay it off early before it gets relatively expensive, as contracting income allows, without needing to break into higher rate tax bands.

Even the wealthy use cheap debt to assist cash flow, so smart contractors should do the same.

[GordonHunterSuperContract]

Hi Gordon thanks for the note. £295 I could stomach but nearly £1000 just seems too much, why is there such a huge difference in cost if the mortgage is the same?

I've now sorted it with a guy who understood my way of working and for no fee, he said the lender pays him. All he asked is that I pass on his company details if I am happy.

He is planning my application now and has spoken to the estate agent for me, so far so good and at no cost to me!

It's purely up to the mortgage broker and business model what they charge. There's no real extra service apart from reviewing life insurance, financial protection, etc. Review sites like Trustpilot & Feefo are always a good way to get an idea of client experiences. We did a YouTube video on how contractor mortgage brokers make money but I don't think I'm allowed to post links here.

[northernladuk]

What is this mortgage thing you are all talking off? I thought this was only something perm workers had?

Nope. Poor people and even the unemployed have them.

[Whorty]

What is this mortgage thing you are all talking off? I thought this was only something perm workers had?

[Carm F]

The majority of contractor mortgage brokers charge a fee for mortgage advice. They range from a cost such as £295 like ourselves to other brokers charging £995 upwards.

Hi Gordon thanks for the note. £295 I could stomach but nearly £1000 just seems too much, why is there such a huge difference in cost if the mortgage is the same?

I've now sorted it with a guy who understood my way of working and for no fee, he said the lender pays him. All he asked is that I pass on his company details if I am happy.

He is planning my application now and has spoken to the estate agent for me, so far so good and at no cost to me!

[scooterscot]

Bottom line is: Don't have debt. Pay off what little you have and quickly.

[Martin@AS Financial]

Here's some free advice, why are some lenders beginning to shut up shop? Is it because the next credit crunch is just around the corner...

Magellan Homeloans stops new lending | Mortgage Introducer

Something similar also recently happened to Fleet Mortgages who are another specialist / challenger lender. They pulled their entire product range in January and are still waiting for their next tranche of funds to be made available.

Fleet Mortgages pulls entire product range - FTAdviser.com

[fullyautomatix]

Here's some free advice, why are some lenders beginning to shut up shop? Is it because the next credit crunch is just around the corner...

Magellan Homeloans stops new lending | Mortgage Introducer

QE will sort out any credit crunch. Nothing to see here.

However, hyperinflation is a genuine concern and borrowing now would be a smart move since a few years after Brexit you will be sitting on top of a desirable asset with almost nothing to pay. But, in such situations you will likely to looking at sourcing rabbits for your daily meal than worry about your mortgage repayment.

[GordonHunterSuperContract]

The majority of contractor mortgage brokers charge a fee for mortgage advice. They range from a cost such as £295 like ourselves to other brokers charging £995 upwards.

[scooterscot]

You are assuming that with price inflation comes wage inflation. Fingers crossed...

Out of control inflation is all we've had since 2008. Wage inflation is non-existent whilst debts accumulate. The only option left is a currency reset. This is why central banks are gathering gold. Venezuela's gold was ceased by the thieving BoE.

[Carm F]

Thanks for the advice, apologies for posting in the incorrect area?

I did actually speak to CMME but was not impressed.

I spoke to another company yesterday evening who doesnt charge any fees at all. They get paid by the lender at completion, which I thought every broker did anyway! I assumed this would mean I have to borrow more but the rate he quoted and total cost was lower than both the companies I had already spoken to (whilst he said he would need to talk through my circumstances before confirming fully)

I had a guilty conscience and fessed up to the agent about Santander so I've got a sit down appointment with their lady today, they have agreed to waive their fee if I use them and he is adamant she can help even being an interim so fingers crossed I can make it all work.

Regarding borrowing money, I am getting almost zero interest on my savings and the mortgage will be £300 less than the rent whilst getting an asset that grows so for me its a no brainer to do it now. Plus I'm not getting any younger!

[northernladuk]

that helps.
But it doesn't change the fact that the cost has gone down. Even if the ability to pay has also gone down.

At least something is still going down on you.