Mortgage advice (First time buyer)

[Gazp]

Yes, you are correct GAZP ... my 20 handicapper pal, along with, of course, my Golf Monthly offerings, gives me better advice than my golf pro!!

As they say in my neck of the woods ... AYE, RIGHT!!

For the record this person is not curing a slice BUT maybe, just maybe, committing himself to a large financial outlay incorrectly.

I'm sure you will also recommend brain surgery via the internet output!

I'm not recommending he does anything via the internet, all I'm saying if you go to 2 people who should offer you the same level of service & advice, why go to one who charges if the other one doesn't. What bebefit would you get from paying for advice when you can get the same advice from another adviser for free

 

[Farneyman]

Why are you asking for mortgage advice on a golf forum?

Because this is the OOB section and I am asking the user for advice. Simple as.

 

[Lawrence22]

Just in case, if you are self employed you are going to have to bring a heck of a lot of stuff along with you when you apply. I had a nightmare meeting with a Nationwide mortgage adviser last year. Young girl didn't have a clue. Asks me to bring along company accounts which I did, problem is that she had no idea how to read them, kept pointing at figures and asking me if this was the profit? I could have suggested any figure was. Also when she was looking at my salary she took my P60 and divided the figure by 2 as I was a 50% shareholder. I could not get through to her that this was my P60 and had nothing to do with my business partner. I ended up walking out when she started to get offended because I asked to speak to someone else. Went to another bank and spoke to someone used to dealing with self employed people and had it sorted in a couple of days.

 

[Farneyman]

Thanks again everyone for the input. I now feel I will be a bit better prepared for my meetings. This researh malarky is hard work!!!

Now if only curing my slice was so easy.

 

[TriggerTech]

1) Make sure your are aware of ERC requirements (Early repayment Charges on Fixed money)
2) Ensure you know how long your pre-emption period is (Time that you still have to repay council discount) used to be typically 3 years, but some now insist on 5 or 10 year clauses - Generally offer a staggered repayment requirement ie over 5 years - 1st Year 100% repaybale Year 2 80% and so on.
3) To avoid delays ensure you take proof of income / proof of Identity and address to your broker - The number of cases I see that are packaged right is unbelievable and adds typically 1-2 weeks on Offer turn around.
4) Any money borrowed above reduced Purchase price should only be used for "Home Improvements" - however no checks to this regard are undertaken - maybe an R11?

Good luck

 

[RGDave]

I just go for a basic no-frills arrangement.

Too many horror stories for me about penalties and other stuff.

My bank tried to charge me £4k once when I moved home because I was "rolling up" my home improvement loan (for a new roof and double-glazing) into a new mortgage. I refused to fall for that kind of nonsense. I had a £40k mortgage and a £6k improvement loan. I wanted to "pay that off" and take out £60k or something. Where's the problem? There wasn't....

I wonder if everyone has the word MUG written across their forehead.

 

[JamesS]

Re: Buying a council house.

In general be careful about buying a house now. Even the politicians recognise that house prices need to fall. However, if you are buying your council house at a reduced rate its probably ok. Ask yourself if the price you are paying still looks good if the general house prices fell by 20-30% over 5 years.

Re: Regualtion.

Yes financial advisers are regulated but ask yourself who by? In the Uk it is the FSA, and others, and remind yourself the latter did and said literally nothing why the seeds of this financial crisis were developing. This financial crisis we are in now was as predictible as night following day. However, there were too many people gaining financially and politically from its development. The FSA are separate from government but never seem to critisize government when they allow or encourage questionable financial activity.

Most financial advisors are honest and helpful people but there are a few rogues who are self serving. But that can be said about most industries. In the (non-financial) company in which I work there are people who are good and people who are total garbage.

I think the best solution i have found is to agree a fee with the FA before he gives advice and ensure he does not get a fee for the product he supplies. That way you know he is giving the best advice for you.