Whether you are looking at your options as an inexperienced first-time buyer in Cambridge searching the market for your first home or are looking to move home, it’s likely you will have discovered that some of the larger estate agents and builders would prefer it if you used their in-house mortgage advisor and conveyancing services.
As a standalone mortgage broker in Cambridge, we have spent many years working hard to help out our customers. We are free from any business relationships with banks, building societies or estate agents.
This means we have no ulterior motive, we are here to help home buyers get their dream home and a favourable mortgage deal. That’s at the heart of our business and what drives us.
On a regular basis we’ll hear from a large amount of customers who have felt themselves being pressured by an estate agent to opt into that companies personal financial services. Here are just some of the instances we’ve heard from people who get in touch;
A lot of estate agents across the industry have a reputation for refusing to put an offer forward if you pass up on their in-house mortgage advisor and go with an external mortgage broker instead.
As if this act wasn’t bad enough, some have even gone as far as to refuse putting an offer through because another client who actually said yes to their in-house service has also made an offer on the same property.
Something else we hear all too often is the ridiculous quotations they have been known to give for their services. Unfortunately there have been customers we’ve spoken to who weren’t aware these were overpriced and went forward with them. One notable customer was charged £1,500 for a simple purchase with a particular estate agent.
A member of our dedicated mortgage advice team got right onto this and we were able to get this cost down. Off of this incident, we recommended that the customer use another conveyancer in the area near the property and we were able to drop the cost of the service to a significantly less £750; the estate agent was charging double this amount!
Once you’ve made an offer on a property, the common train of thought would be that pretty soon you’ll get a phone call detailing whether or not your offer has been accepted. What often happens with estate agents instead, is they will call up and demand to know the conveyancer you have chosen.
Their questionable methods don’t end there, as following this they have a habit of refusing to take the property off the open market until you agree to use their in-house mortgage services.
As touched upon earlier, though these will be far overpriced, many crumble under the pressure and simply agree to please the agent and avoid losing their home (even though that shouldn’t happen). This is common with first-time buyers in Cambridge who want their first mortgage experience to go smoothly.
As you’ve seen here, estate agents are notorious for making the process difficult and bordering on near harassment. A dedicated mortgage broker in Cambridge can help you with these situations and in some cases, bring the costs of other services down to a level that is fair. Now to answer a question you may be thinking at this point…
Absolutely not. These are highly illegal ways to conduct business. As a customer, you have the right to use whichever companies you would like during your home buying process. You have full freedom to use any mortgage broker or conveyancing solicitor that you wish to, it’s your personal process and personal choice.
Unless you explicitly sign a contract in the beginning to say you will only use their services (which you won’t be offered anyway), you have zero obligation to use their services for anything other than the sale process between yourself and the seller of the property.
Please always remember, when negotiating on the purchase price of a property; Should the people selling the property you’re looking to buy really know your personal financial circumstances, as well as the amount a lender is willing to let you borrow? This is a fact they will use to their advantage when pushing their in-house services.
Be wary and if you definitely don’t want to use their service, put your foot down and do not succumb to the pressure. Your future family home and financial situation all depends on how well your mortgage process goes.
We will always have your best interests at heart, keeping you informed throughout and jumping through those hoops on your behalf, so you can stay relaxed and happy. The information provided here is based on a genuine history of tactics used, that we wouldn’t wish others to go through if they can avoid it.
For all your mortgage needs, please do get in touch and we’ll do our very best to help you out, hopefully securing a great deal and your future family home in the process.
Here you’ll find out the basics that you need to know about agreements in principle, including the pros and cons of getting one. For more information, get in touch and speak with one of our expert Mortgage Advisors in Cambridge today. An Agreement in Principle (also known as an AIP or Decision in Principle) is where you pass a Lender credit score to qualify for a mortgage.
By obtaining an Agreement in Principle, you prove that you are ready to support any offers you make as a First-Time Buyer in Cambridge. It may also help negotiate a lower price if you have one of these, as it shows the seller you are serious and have the means to continue with the process.
The more commonly seen methods of credit scoring are via soft searches rather than a hard search. These may still affect your credit score, though a hard search will usually be more likely to do this than a soft search.
Reasons come down to a hard credit search that can leave a credit footprint, whereas a soft search does not. Regardless, you can rest assured that whichever is used by the Lender is done with the best intentions.
Having your credit checked via a hard search every so often should not make too much difference. It becomes an issue if you take too many of these within a small amount of time. On the flip side, if you know you have a good credit score and the best path to take with a lender, this should not be a problem.
Whilst the prospect of this would be excellent, there are no guarantees that having an Agreement in Principle will allow you to get a mortgage. The Lender will still require seeing all your documents, and only then will an Underwriter make the very final decision.
Often we find that customers contact us after they got declined at the application stage due to missing some small print in their Agreement in Principle. You will need to provide ID to prove that your identity, payslips to prove your income and bank statements to prove you are smart with money before a lender offers your case.
Though you can make an offer without an Agreement in Principle, we would not advise doing so. Any credible Estate Agent will want you to prove you can progress onward.
It is possible to obtain an Agreement in Principle within 24 hours of getting in touch with an experienced mortgage advisor in Cambridge.
Typically, an Agreement in Principle will expire after 30-90 days. The good news is that this doesn’t mean you should apply for the first house you find. If your Agreement in Principle expires, it’s not difficult to obtain another ahead of making an offer.
Finding a mortgage only to be declined a mortgage can cause understandable disappointment. With this in mind, we recommend getting an Agreement in Principle as early as possible.
If you are a First-Time Buyer in Cambridge or are looking at Moving Home, you will know that several forms of mortgages are available. Some of them are more common than others, and some may even be difficult to find. We have assembled a list of some of the most common forms of mortgages. You will also find one of our MoneymanTV episodes useful for learning more about these.
A fixed-rate mortgage means that for a specified time, the mortgage rates will remain the same. You should decide your period, usually 2, 3, or 5 years or more, for your payments. You know your mortgage balance will typically be the largest outstanding one, regardless of inflation, interest rates, or the economy.
Your interest-rate shall track the base rate of the Bank of England by using a tracker mortgage. In other words, the lender does not fix the rate itself. You pay a sum above the base rate of the Bank of England. An example of this is where the basic rate is 1%, and you are tracking at 1% more than the basic rate, you pay 2%.
If you carry out a repayment mortgage, you pay capital and interest together every month. So long as you carry the full term of the interest loan, you will pay the mortgage debt at the end, and the property shall be yours. This is the risk-free way of paying the lender back the money.
The interest you are paying in the early years, and particularly with a period of 25, 30, or 35 years, your balance would decrease very slowly. In the last 10 years or so, this scenario changes, where your payments pay more capital than interest and your balance falls even faster.
While some transactions allow mortgages on an interest-only basis, residential property is even more difficult to obtain on an interest-only basis. Lenders are also less likely to sell a product that is interest-only. However, it may be an alternative under some conditions.
This involves reducing the amount of money you pay out as you’re older or have other savings. When it comes to offering these items, lenders are very strict now, and the valuation loan is much smaller than before.
You can build a savings account alongside your mortgage account for an offset mortgage. How this works, is you pay interest on the difference, for example, you pay £80,000 for the balance of £100,000, and £20,000 is deposited in your bank account. This can be a very successful way to manage your capital.
The answer is uncertain, but most often than not yes, many situations require a person to have more than one Mortgage.
If you have equity in your home and are searching for a second mortgage to release some of this to fund a purchase or anything else, then our Mortgage Advisors in Cambridge can help. A second mortgage for this purpose gets also referred to as a secured loan. Quite often at this time if you are currently on a lenders standard variable rate, we can shop around and find a more competitive deal at the same time as releasing capital. A further advance with your current Lender is also an option.
If you are looking to move to a new house but keep hold of your existing property with the view to let it out, we will be able to help. Your second Mortgage will be a new residential one. This type of move is known as a let to buy and is becoming increasingly popular in recent years.
If you are exploring the options available to you of helping your children or grandchildren with getting on the property ladder, there are now many products that we can run through to achieve this.
Suppose you are looking to purchase a Buy to Let our team can help. You will get asked to produce a higher deposit for this than a residential mortgage.
Are you currently named on another mortgage and would like to purchase a new property? In any case, this is a situation that our team come across regularly, mainly due to divorce or separation and can often help. Whatever your situation is to get a second mortgage, being an experienced Mortgage Broker in Cambridge our Advisors can search 1000’s of mortgage deals on your behalf and recommend the most suitable product for you based on your situation.