Really needed this video as a young first time buyer. already had our first meeting with a mortgage advisor. but didn't understand all too much of it. thank you so much
@@pattersonellen no, the broker fee is subject to the broker and is charged at their own rate. The commission comes from the lender and is like a finders fee. It doesn’t charge the client.
@@NS-kc8hb i know the lender doesnt charge the buyer a commission. Im aking a different question. The reason i ask is a broker is asking a friend for a fee when they will also get a commission from the lender. She doesnt know if she will get better value elsewhere where the broker gets just commission from the lender. And doesnt charge her as well.
@@pattersonellen broker charging a fee is Normal practice there is no guarantee your friend will go through with the mortgage and the broker would do a lot of work. So they often charge a fee yes 👍
Wow, I have been trying to find this information everywhere. The way you've laid out the process is so incredibly helpful. Thank you so much for this video.
Great video! Thanks for sharing. Would you recommend using a broker who charges a fee? Or looking for one that gets paid just by the lender? Is there any difference?
Hi, If you find a broker who charges a fee and it good then that's great, although there are more and more fee free brokers these days who also offer fantastic service. The fee charging or not should generally not make a difference to the products you get, so it is all down to which broker you are most comfortable with. We are a fee free broker, so perhaps a little biased, but you shouldn't need to pay a fee to get great service (and feel free to reach out to us directly if you want any assistance). Kye
Hello, You can certainly talk to a mortgage adviser prior, or whilst, saving for your deposit. This is generally a good idea as you then know exactly what deposit you specifically need. By the time you have an offer accepted on a property you want the bulk of the deposit available, although again you can be a little short, if its clear you can save the final portion during the mortgage process (often takes at least a few months). Kye
Hi Thanks for you video. Really helpful. Got a quick question. In the process of buying a property at the minute and I plan to renovate and extend within one year as its in a poor state (house price is also cheaper). Question is what type of mortgage rate type do I buy ? 2/3/5 years fixed rate or variable mortgage ?
Hello, I'm glad you found it useful. It's difficult to be clear on type of mortgage rate as your plans with the property are only one factor in the type of rate you should take. If you are in the process of buying you should certainly discuss this with your broker or lender as they should have all of the information around what's best for you (if you haven't yet started the process of applying for a mortgage feel free to reach out directly and we can run through everything for you). Just on your information so far theory would suggest a short term fix or variable given you expect to increase the property value and therefore your loan to value increases, however short term products have risks (as do all products in some manner), alongside potential risk of house prices and if your loan to value now is already at a state where the improved renovations wouldn't really make much difference. On top of that you then are needing to look at the expectation of rates over the next 0-5 years. Not sure if that helps for now, and as mentioned certainly bring this up with whoever has been providing you advice so far, or get in touch with us directly. Kye
Morning, First steps are to reach out to someone to obtain an Agreement in Principle (AIP), which would then confirm to you how much you can borrow, what it costs you, how it all works along with any other possible considerations. To get this AIP most people use a broker (like ourselves) where more lender criteria can be checked. Kye
Hello, All brokers get a fee from the lender and most charge an additional fee to the buyer (although not all do). Sizes of the fees charged can vary as can when they are payable by buyers (i.e. some charge at the start of the process, some only charged once everything goes through). Kye
Question: if I put a deposit down on a mortgage, start paying the mortgage and can’t keep up with repayments. The bank will sell the house, but will I get my deposit back? Or do I lose it because I was not able to keep up with repayments? Even though it’s included in the overall value of the house.
Hello, In the event of repossession the bank get their money back first with the remainder of the proceeds generally going to you. So you take the sale value, minus the banks mortgage (and any additional costs they've incurred, such as legal fees) and any left over funds go to the owner. So if your property value has gone down, or if legal costs are high then you could also lose some, or all, of your deposit, particularly if you've not paid down much of your mortgage to that point. Kye
@ Thank you for your response. One more question: does the sale of the house and repaying the mortgage back to the bank include paying interest back on the mortgage aswell? Or does the interest become void?
How do mortgage Brooke’s make money on the backend from the deals completed? 1 avenue from the client directly, paying for the service, then 2nd from the lender
Hello, All brokers get paid by the lenders on completion - this is essentially for doing the lenders legwork for them and does not get factored into the rate, or products you get at all. Many brokers then decide to add a broker fee on top, although some are free and just take the initial lender fee noted above (such as ourselves!). Kye
Hi, Once you're scheme has actually started it's rarely possible to change without penalty (unless you are on a product with no repayment charges). If you've applied and not yet completed on your scheme most lenders will allow you to change mid application. Kye
Thank you! If you ever think you're being too basic, please don't. You don't realise how little some people know (e.g. me). Stupidly, you never really learn this stuff until you go and do it! Can I call any broker? Or should it be a mortgage broker in my area? I am London based. Also, I have money coming from my job (around 8k) in October, but I want to start looking now for properties because I'm hoping to buy before the NY. Do you have to have all the money for the deposit before you start?
Hello! Yes, you can use any broker with many being non face to face these days (as we also generally are). The key is finding a broker you like/trust. You don't need all of the funds before you start looking and if you can bank on the funds coming in October then this is ok as the process from finding somewhere can often take a few months. You may be asked by a lender to prove your deposit so if this is the case having something from your employer confirming may help. Hope that helps but feel free to reach out to us directly should you need anything more specific to you - www.crescentmortgages.co.uk Kye
Maybe a tough/awkward one for you to answer, but how do you find a good broker? Would you ever meet with multiple and see who comes back with the best offer? Seems a bit sleazy so, if picking one - should I be looking to see if they have certain certs or memberships listed on their site first?
Hello, There are a few key things to check, such as do they have access to all of the lenders on the market, and what is there fee charging structure. These can both vary wildly from broker to broker. Once you find one who searches as many lenders as possible, and either charges no fee, or what you feel is a fair fee then it is more down to how you feel with them. On top of that experience often is key too. There is no harm in speaking to multiple brokers and be honest with them that you are looking at multiple - after speaking to a few you'll likely get a feel for which you prefer. Your broker plays a big role in your purchase so your trust in them is important. And if you need to try someone feel free to reach out to us directly! Kye
I had an offer accepted about a week ago and now im going through the mortgage application, thankfully we will be eligable and in good position for the lender to accept us. My question is, although me and my husband and the broker are aware we will be accepted but due to the long wait for the mortgage ti be approved, can i instruct the solicitor now? Whilst waiting for the approval..
If you're working with a Broker, they should be able to give advice on this, tailored to your purchase, but generally - yes! You should instruct the Solicitor right at the start of the process as they have a lot of work to get through. The legal work usually takes a lot longer than the mortgage application, so it's sensible to instruct the Solicitor as soon as possible once you've found a property. Good luck with it!
You certainly were! Thank you for subscribing! Yes, anyone in the country can get in touch as we give most of our advice over the phone. If you want to get in touch head over to our website and complete the contact form. Kye
Can you get a mortgage if you just got a new job? I ended my previous job a few months ago, and it took me 3 months to find another job which I just started. Can I still get a mortgage or would i have to wait a certain period of time in this job?
A new job with a 3 month gap in between can limit your options somewhat but there are also lenders out there who can generally lend in that scenario. Of course everyone has slightly different circumstances, so if you want to be sure it's best to reach out and speak to someone. We're more than happy to help if you want to reach out directly by heading over to our website, www.crescentmortgages.co.uk or email us on info@crescentmortgages.co.uk Kye
This is really helpful, thank you! Have you got any advice for first time buyers with dependents - obviously income plays a massive part and it's all on an individual basis but how do dependents affect potential mortgage offers?
Hello, Dependants generally lower affordability, although as you say its very individual. The lenders algorithms all have different calculations for dependants, and they all ask if there is any childcare costs. This then gets factored in, on top of things like credit cards, car finance and loans. Feel free to get in touch if you're wanting to know how it impacts you specifically. Kye
Hi, There are quite a few factors that go with the credit scoring process that impact lenders decisions, such as deposit amount. A "fair" credit score is potentially OK, with some lenders not really looking at your score but the overall conduct (i.e. are payments made on time, if not when were they missed). To be sure you ideally need to go through your entire situation with a broker who can then let you know the chances, and possibly even run an agreement in principle for you. If you need any help feel free to get in touch directly. Kye
@@jamierogers6826 Hi, Both applicants have to pass the credit score, so if one fails the overall application fails (although depending on the situation you could apply in a single name). Kye
@@jamierogers6826 Hi, Generally a default can cause problems, although it will vary on how long ago it was registered, when it was settled and how much it was for, amongst other factors. For example a default 6 years ago you'd have a good chance of applying through mainstream lenders, whereas a default yesterday would generally wipe those lenders out and you may need to seek specialist lenders. Kye
Whoa!! An AIP from a Mortgage broker is absolutely worthless! The broker is not lending you the money. The AIP must come from the lender. Not good advice IMO!
Hello, A common misunderstanding - It really does depend on the broker. An AIP from one lender is mainly just a credit score, and can easily be obtained online putting any figures in. That means that you could put in any income, get a much higher AIP but ultimately when it comes to proving this the AIP is then invalid. A good broker will ensure the figures are accurate, can check your credit score and ultimately has the best part of 100 lenders to then check your criteria with. As long as the broker is checking with the lenders, and possibly multiple lenders, this generally carries more weight than a lender AIP. On top of this you get advice from a broker, whereas banks often just carry out the transaction without being able to offer holistic advice. Note broker can also run a lender AIP if they feel it would be beneficial, so you have the best of both worlds. Kye
Hello @@g.p616 Potentially yes - you can carry out an AIP direct with a lender and enter whatever figure you want online for your income, which would result in an AIP that wouldn't actually work going forward. As an example, this is common when people receive variable pay (bonus/commission/overtime) as some lenders only take half of this, or an average, and many people don't know how to do this directly, therefore making the lender AIP incorrect. A broker AIP can still be run with a lender, but entered by the broker, which will then ensure the information is correctly input and produce an accurate answer - so a good broker should always be better (important that it is a good broker of course!). I'd be interested to know others opinions, but in the thousands of mortgages I've done personally I've noticed many lender AIPs that are inaccurate, for many different reasons. Whenever you are in a position to look into your own AIP feel free to try both and see what you prefer 😃 Kye
I do mortgages in an America. This was very interesting to learn your terminology. Things are different. Although volume is not much different. With that being said I have never met someone who has done “thousands” of mortgages. That math doesn’t check out. You’d have to close 100 loans a year for 20 years straight with no falter to reach that as a truth.
@summitmortgage we have 23 years combined experience in the industry (we’re older than we look!) and previously worked for several years at a large brokerage who’s business model was high volume. Organising 100+ mortgages every year was very normal. Good luck with business on your side of the pond 👍
Really needed this video as a young first time buyer. already had our first meeting with a mortgage advisor. but didn't understand all too much of it. thank you so much
Thanks Alana, you're very welcome!
As a recently qualified broker I found this really useful revising over the steps of the process
Glad you found it useful - good luck in your career to come!
Kye
Do the brokers charge both the lender a commission and the buyer a fee?
@@pattersonellen no, the broker fee is subject to the broker and is charged at their own rate. The commission comes from the lender and is like a finders fee. It doesn’t charge the client.
@@NS-kc8hb i know the lender doesnt charge the buyer a commission. Im aking a different question. The reason i ask is a broker is asking a friend for a fee when they will also get a commission from the lender. She doesnt know if she will get better value elsewhere where the broker gets just commission from the lender. And doesnt charge her as well.
@@pattersonellen broker charging a fee is Normal practice there is no guarantee your friend will go through with the mortgage and the broker would do a lot of work. So they often charge a fee yes 👍
Great video guys! Stellar editing too 👌
Thanks Anna!
Wow, I have been trying to find this information everywhere. The way you've laid out the process is so incredibly helpful. Thank you so much for this video.
Thrilled we could help you - Good luck with your research and let us know if you need anything!
Great video! Thanks for sharing.
Would you recommend using a broker who charges a fee? Or looking for one that gets paid just by the lender? Is there any difference?
Hi,
If you find a broker who charges a fee and it good then that's great, although there are more and more fee free brokers these days who also offer fantastic service.
The fee charging or not should generally not make a difference to the products you get, so it is all down to which broker you are most comfortable with.
We are a fee free broker, so perhaps a little biased, but you shouldn't need to pay a fee to get great service (and feel free to reach out to us directly if you want any assistance).
Kye
Thanks for this video. Does one need to have the complete 5 or 10% at hand before contacting or speaking to a mortgage advisor?
Hello,
You can certainly talk to a mortgage adviser prior, or whilst, saving for your deposit. This is generally a good idea as you then know exactly what deposit you specifically need.
By the time you have an offer accepted on a property you want the bulk of the deposit available, although again you can be a little short, if its clear you can save the final portion during the mortgage process (often takes at least a few months).
Kye
Hi Thanks for you video. Really helpful.
Got a quick question.
In the process of buying a property at the minute and I plan to renovate and extend within one year as its in a poor state (house price is also cheaper). Question is what type of mortgage rate type do I buy ? 2/3/5 years fixed rate or variable mortgage ?
Hello,
I'm glad you found it useful. It's difficult to be clear on type of mortgage rate as your plans with the property are only one factor in the type of rate you should take. If you are in the process of buying you should certainly discuss this with your broker or lender as they should have all of the information around what's best for you (if you haven't yet started the process of applying for a mortgage feel free to reach out directly and we can run through everything for you).
Just on your information so far theory would suggest a short term fix or variable given you expect to increase the property value and therefore your loan to value increases, however short term products have risks (as do all products in some manner), alongside potential risk of house prices and if your loan to value now is already at a state where the improved renovations wouldn't really make much difference. On top of that you then are needing to look at the expectation of rates over the next 0-5 years.
Not sure if that helps for now, and as mentioned certainly bring this up with whoever has been providing you advice so far, or get in touch with us directly.
Kye
So should I get my mortgage approve before I start looking? but how do I know how much I will need to borrow?
Morning,
First steps are to reach out to someone to obtain an Agreement in Principle (AIP), which would then confirm to you how much you can borrow, what it costs you, how it all works along with any other possible considerations.
To get this AIP most people use a broker (like ourselves) where more lender criteria can be checked.
Kye
Do the brokers charge both the lender a commission and the buyer a fee?
Hello,
All brokers get a fee from the lender and most charge an additional fee to the buyer (although not all do). Sizes of the fees charged can vary as can when they are payable by buyers (i.e. some charge at the start of the process, some only charged once everything goes through).
Kye
This is a great video !
Question: if I put a deposit down on a mortgage, start paying the mortgage and can’t keep up with repayments. The bank will sell the house, but will I get my deposit back? Or do I lose it because I was not able to keep up with repayments? Even though it’s included in the overall value of the house.
Hello,
In the event of repossession the bank get their money back first with the remainder of the proceeds generally going to you. So you take the sale value, minus the banks mortgage (and any additional costs they've incurred, such as legal fees) and any left over funds go to the owner. So if your property value has gone down, or if legal costs are high then you could also lose some, or all, of your deposit, particularly if you've not paid down much of your mortgage to that point.
Kye
@ Thank you for your response. One more question: does the sale of the house and repaying the mortgage back to the bank include paying interest back on the mortgage aswell? Or does the interest become void?
@@policefootage7771
Hello,
Generally it should just be paying back the balance plus costs incurred (not interest)
Kye
@@crescentmortgages Thank you very much Kye
@@policefootage7771 No problem at all!
How do mortgage Brooke’s make money on the backend from the deals completed?
1 avenue from the client directly, paying for the service, then 2nd from the lender
Hello,
All brokers get paid by the lenders on completion - this is essentially for doing the lenders legwork for them and does not get factored into the rate, or products you get at all.
Many brokers then decide to add a broker fee on top, although some are free and just take the initial lender fee noted above (such as ourselves!).
Kye
can you change the schemes from variable to fixed?
Hi,
Once you're scheme has actually started it's rarely possible to change without penalty (unless you are on a product with no repayment charges).
If you've applied and not yet completed on your scheme most lenders will allow you to change mid application.
Kye
Thank you! If you ever think you're being too basic, please don't. You don't realise how little some people know (e.g. me). Stupidly, you never really learn this stuff until you go and do it!
Can I call any broker? Or should it be a mortgage broker in my area? I am London based.
Also, I have money coming from my job (around 8k) in October, but I want to start looking now for properties because I'm hoping to buy before the NY. Do you have to have all the money for the deposit before you start?
Hello!
Yes, you can use any broker with many being non face to face these days (as we also generally are). The key is finding a broker you like/trust.
You don't need all of the funds before you start looking and if you can bank on the funds coming in October then this is ok as the process from finding somewhere can often take a few months. You may be asked by a lender to prove your deposit so if this is the case having something from your employer confirming may help.
Hope that helps but feel free to reach out to us directly should you need anything more specific to you - www.crescentmortgages.co.uk
Kye
Maybe a tough/awkward one for you to answer, but how do you find a good broker? Would you ever meet with multiple and see who comes back with the best offer? Seems a bit sleazy so, if picking one - should I be looking to see if they have certain certs or memberships listed on their site first?
Hello,
There are a few key things to check, such as do they have access to all of the lenders on the market, and what is there fee charging structure. These can both vary wildly from broker to broker. Once you find one who searches as many lenders as possible, and either charges no fee, or what you feel is a fair fee then it is more down to how you feel with them. On top of that experience often is key too.
There is no harm in speaking to multiple brokers and be honest with them that you are looking at multiple - after speaking to a few you'll likely get a feel for which you prefer. Your broker plays a big role in your purchase so your trust in them is important.
And if you need to try someone feel free to reach out to us directly!
Kye
I had an offer accepted about a week ago and now im going through the mortgage application, thankfully we will be eligable and in good position for the lender to accept us. My question is, although me and my husband and the broker are aware we will be accepted but due to the long wait for the mortgage ti be approved, can i instruct the solicitor now? Whilst waiting for the approval..
If you're working with a Broker, they should be able to give advice on this, tailored to your purchase, but generally - yes! You should instruct the Solicitor right at the start of the process as they have a lot of work to get through. The legal work usually takes a lot longer than the mortgage application, so it's sensible to instruct the Solicitor as soon as possible once you've found a property. Good luck with it!
@@crescentmortgages thank you so much, yes going to speak to my broker right away 🤞🏻
I think I was your 1000th subscriber 🎉 can anyone around the country use you guys?
You certainly were! Thank you for subscribing!
Yes, anyone in the country can get in touch as we give most of our advice over the phone. If you want to get in touch head over to our website and complete the contact form.
Kye
Can you get a mortgage if you just got a new job? I ended my previous job a few months ago, and it took me 3 months to find another job which I just started. Can I still get a mortgage or would i have to wait a certain period of time in this job?
A new job with a 3 month gap in between can limit your options somewhat but there are also lenders out there who can generally lend in that scenario.
Of course everyone has slightly different circumstances, so if you want to be sure it's best to reach out and speak to someone. We're more than happy to help if you want to reach out directly by heading over to our website, www.crescentmortgages.co.uk or email us on info@crescentmortgages.co.uk
Kye
This is really helpful, thank you! Have you got any advice for first time buyers with dependents - obviously income plays a massive part and it's all on an individual basis but how do dependents affect potential mortgage offers?
Hello,
Dependants generally lower affordability, although as you say its very individual. The lenders algorithms all have different calculations for dependants, and they all ask if there is any childcare costs. This then gets factored in, on top of things like credit cards, car finance and loans.
Feel free to get in touch if you're wanting to know how it impacts you specifically.
Kye
I have a fair credit score but my partner had a good credit score am i likely to get approved on one one?
Hi,
There are quite a few factors that go with the credit scoring process that impact lenders decisions, such as deposit amount. A "fair" credit score is potentially OK, with some lenders not really looking at your score but the overall conduct (i.e. are payments made on time, if not when were they missed).
To be sure you ideally need to go through your entire situation with a broker who can then let you know the chances, and possibly even run an agreement in principle for you.
If you need any help feel free to get in touch directly.
Kye
Is it likely to be declined for both of us if it's not great
@@jamierogers6826 Hi,
Both applicants have to pass the credit score, so if one fails the overall application fails (although depending on the situation you could apply in a single name).
Kye
How does a default against your name affect if you are excepted or not ?
@@jamierogers6826 Hi,
Generally a default can cause problems, although it will vary on how long ago it was registered, when it was settled and how much it was for, amongst other factors. For example a default 6 years ago you'd have a good chance of applying through mainstream lenders, whereas a default yesterday would generally wipe those lenders out and you may need to seek specialist lenders.
Kye
Salam sister and brother and family
I hope you get better soon inshallah 🙏 sister
Qualified not experienced
Whoa!! An AIP from a Mortgage broker is absolutely worthless! The broker is not lending you the money. The AIP must come from the lender. Not good advice IMO!
Hello,
A common misunderstanding - It really does depend on the broker. An AIP from one lender is mainly just a credit score, and can easily be obtained online putting any figures in. That means that you could put in any income, get a much higher AIP but ultimately when it comes to proving this the AIP is then invalid.
A good broker will ensure the figures are accurate, can check your credit score and ultimately has the best part of 100 lenders to then check your criteria with. As long as the broker is checking with the lenders, and possibly multiple lenders, this generally carries more weight than a lender AIP. On top of this you get advice from a broker, whereas banks often just carry out the transaction without being able to offer holistic advice.
Note broker can also run a lender AIP if they feel it would be beneficial, so you have the best of both worlds.
Kye
Mmmm, so a Broker’s AIP carries more weight than an AIP from the Lender who is actually going to lend the money!!🤔
Hello @@g.p616
Potentially yes - you can carry out an AIP direct with a lender and enter whatever figure you want online for your income, which would result in an AIP that wouldn't actually work going forward. As an example, this is common when people receive variable pay (bonus/commission/overtime) as some lenders only take half of this, or an average, and many people don't know how to do this directly, therefore making the lender AIP incorrect.
A broker AIP can still be run with a lender, but entered by the broker, which will then ensure the information is correctly input and produce an accurate answer - so a good broker should always be better (important that it is a good broker of course!).
I'd be interested to know others opinions, but in the thousands of mortgages I've done personally I've noticed many lender AIPs that are inaccurate, for many different reasons.
Whenever you are in a position to look into your own AIP feel free to try both and see what you prefer 😃
Kye
I do mortgages in an America. This was very interesting to learn your terminology. Things are different. Although volume is not much different. With that being said I have never met someone who has done “thousands” of mortgages. That math doesn’t check out. You’d have to close 100 loans a year for 20 years straight with no falter to reach that as a truth.
@summitmortgage we have 23 years combined experience in the industry (we’re older than we look!) and previously worked for several years at a large brokerage who’s business model was high volume. Organising 100+ mortgages every year was very normal.
Good luck with business on your side of the pond 👍