First-Time Buyer: Do I Need a Mortgage Broker?
- Helping clients secure the right mortgage since 2004
- A friendly, expert team guiding you at every step
- Trusted by 1000's with expert advice for first-time buyers, home movers, and remortgages with expert advice.
What's On This Page?
GET IN TOUCH
First-Time Buyer: Do I Need a Mortgage Broker? (Part 1)
Is a mortgage broker worth it for a first-time buyer?
Definitely. First-time buyers need confidence to buy their first home, and a good broker will provide that by listening to your objectives, working on a budget, showing you all the costs involved with the purchase, highlighting any first-time buyer incentives from government and lenders, and then researching the right solution from the whole of the market.
We consider ourselves to be home-buying advisors, not just mortgage advisors. Reaching out to a good broker is the quickest leap forward to buying yourself a house.
What exactly does a mortgage broker do? How is seeing a mortgage broker different from going directly to a bank?
We listen to your objectives and work towards those, and an independent mortgage broker will have access to the whole of the market to find the right solution for you. A first-time buyer also needs to meet lenders’ criteria to achieve their objectives, and having the whole of the market available helps with that.
Going direct to your bank gives you just one set of mortgage criteria and one set of products. It’s very likely that there will be better criteria and products available for you elsewhere.
How do I know if a mortgage broker is trustworthy? Are mortgage brokers regulated?
Mortgage brokers are regulated by the Financial Conduct Authority, just like a bank or a building society. We need to complete relevant qualifications to advise on mortgages.
It’s always sensible to work with an independent mortgage broker that has lots of good reviews. Take a look at their Google reviews and make sure they’re recent, because services can change.
Do mortgage brokers work for me or for the lender?
We work for you and we introduce business to the lender. A good broker will have strong relationships with lenders, via personal contacts known as business development managers. A broker liaises closely with the lender, but ultimately works for you.
SPEAK TO AN EXPERT
We will save you time by researching the market, checking that you meet the lenders criteria to find the best mortgage for your circumstance.
What questions should I ask a broker before choosing one?
I would ask questions about their experience with helping first-time buyers. Are they independent? Can they explain all the costs involved with the purchase, including the broker fee, and guide you through the process? Can they help with finding a solicitor or any related insurance?
Can a broker explain the mortgage process step by step?
It does depend on the individual broker, their knowledge and the process they follow within that company.
Here at Number One Mortgages, we always explain the home-buying process as well as the mortgage. We encourage questions and we check your understanding – it’s really important to us that you have full confidence to make decisions.
We’ll also complete desktop reviews on properties that clients are interested in, and give tips on how best to present an offer to an estate agent to negotiate the best price possible. I personally don’t know of any other broker firm that does this. Clients love this and find it adds a lot of value.
We also have flyers to make the transaction smoother – we refer to those as a fast-track checklist. It’s all about confidence and making it easier.
Does using a broker save time? Can a broker help speed up mortgage approval?
Can you imagine having a mortgage appointment with every bank and building society to find the right product and criteria for you? That could take months, by which time the criteria and products will have changed and you’ll need to start again.
Often, going to your own bank can end up with you being told it isn’t possible – when in fact it is, and it’s also affordable. A first-time buyer might then choose to rent for a few extra years before they gain confidence to make an enquiry again. So does it save time? Absolutely.
How much does a mortgage broker cost? Do I pay the broker directly or are they paid by the lender?
Costs vary from one broker firm to another, as does the service offered. Some brokers charge thousands, while others don’t charge a fee at all. They also charge at different points in the transaction.
As an example, we charge a fee after listening to your plans, researching the right solutions for you and sharing all the costs involved, and helping you in negotiations on the property you want to purchase.
You’re deciding whether to use us – there’s no obligation to do so. You’re the judge of whether we’re worth a fee. I’ll show you everything you need to make informed decisions before you decide to buy a property, and then you can choose whether to continue with us.
Is using a broker more expensive than going direct?
One advantage of going direct to a bank is that they won’t charge a broker fee, so you could argue that it’s cheaper. However, they also only offer their products and don’t check out the competition. The product could be more expensive than a product elsewhere. On most occasions, using a broker does save money and it will also save a lot of time.
Are there any hidden fees or commission biases?
I can’t talk for other broker firms, but here at Number One Mortgages we don’t have any biases or hidden fees.
We’re very transparent and we’re here to achieve your goal. We believe what goes around comes around – we love to be recommended to friends, and that comes from doing the right thing for an individual and being transparent.
What else do we need to consider as first-time buyers around talking to a mortgage broker?
For a first-time buyer, it can be scary to make an enquiry – but don’t be scared. It really is your first step towards achieving your goal.
It’s all about building confidence around the finance side before you start thinking about the property you want to purchase. We’re here to help you when you’re ready.
Key Takeaways:
- A good mortgage broker acts as a home-buying advisor who provides confidence, works on a budget, and helps you navigate all the costs and incentives associated with purchasing your first home.
- Mortgage brokers can access a range of lenders and find the right product for your circumstances, unlike going directly to a single bank.
- Brokers are regulated by the Financial Conduct Authority, and it is wise to choose one with recent, positive reviews.
- Using a broker can save you significant time, potentially months, compared to researching products with every bank and building society yourself.
- Mortgage brokers ultimately work for you, and a good broker should be able to explain all costs, including their fee, and offer assistance with related services such as finding a solicitor or insurance.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
Buying your first home in 4 simple steps
Step 1
Step 2
Step 3
Step 4
Get the advice you need, speak with an independent expert today!
What you need to know…
The actual amount you can borrow will depend on your credit commitments, your regular monthly outgoings and how each lender assesses your income.
Lender’s affordability checks can differ meaning that the amount you can borrow may change from lender to lender. That’s where the expertise of our personal advisers comes in and where our independent status benefits you.
The minimum deposit required is 5% of the property purchase price. Most lenders will allow the deposit to come from a gift and some lenders will even consider this being raised via a personal loan. There are government incentives to help boost your savings if you are a first time buyer. Depending on your circumstance you may either need to have a larger deposit or will perhaps want to put a larger deposit down, due to preferable interest rates.
Because we are independent mortgage brokers we will be able to secure you the best deal for your circumstance.
An Agreement in Principle, also known as a ‘Decision in Principle’ will be provided after affordability and credit checks have been approved. An Agreement in Principle is extremely useful to increase your confidence when viewing and offering on properties. Estate Agents will typically want to see an Agreement in Principle before presenting your offer to the seller. Our personal advisers can help you with this.
It’s a requirement of your mortgage to have buildings insurance. This covers the bricks and mortar of the property.
It’s also a good idea to take advice from your personal adviser on protecting you and your loved ones if something bad happens. For example: Life Cover, Critical Illness Cover and Income Protection.
Being accepted for a mortgage does depend on your circumstances. We are experts with all types of mortgages…. We specialise in obtaining mortgages for the self-employed, contractors, construction industry scheme (CIS) workers and those with historic adverse credit (as well as employed people of course). In all these situations we can frequently secure high street deals. Being independent and experts is a real benefit in these circumstances.
Your monthly payments will vary depending to your chosen mortgage term, choice of mortgage product, how much deposit you have and repayment type. It is best to chat with a personal independent adviser to find out exactly what interest rate and term you can secure to give an accurate monthly payment.
Most of the first time buyers we have helped secure a mortgage are paying less on their mortgage than they used to pay on rent. This does, however, depend on circumstances. The mortgage term chosen is a major factor which can be dictated by your age and intended retirement age. Of course, it is also worth noting you are paying back the mortgage and once it is repaid you won’t have any rent to pay.
There are costs associated with purchasing your first home. You will need to pay legal fees and other potential costs include a survey fee, stamp duty (which is a property land tax) and administration fees. There are First Time Buyer government incentives on savings and stamp duty that can help you with raising the monies for a deposit, costs and reducing stamp duty. Our personal advisers can give guidance within a free consultation.