Drawbacks?


#21

Apparently it differs. From what my mortgage advisor told me, Barclays did the same, while another (virgin money, I think) did not. Either way, it probably doesn’t hurt to have a 0 balance. Also, this is another reason to get a mortgage advisor / broker: they know these things, and massively increase your chance of acceptance, as they’ll filter out those providers who are unlikely to accept you (e.g. due to outstanding credit card balances)


(Customer of Lloyds Banking Group, plc) #22

Whilst this is true, it also isn’t. Mortgage brokers will make commission from you, so they may offer mortgages to you that pay them the best commission. But ultimately you, the customer, don’t pay them.

I’ve been to a mortgage broker for each of my two mortgages and will be back to see him again and again.


#23

True. But you can use one that you pay a fee to, if you prefer. And they are definitely more independent than the one that your bank or estate agent employs, and can help you find a better deal in less time than you can yourself (I’ll just assume you don’t have the time or knowledge to compare 100s of lenders). As they are typically paid a commission based on your application being successful, they’ll also be helpful in completing your application.


(Lawrence Ferguson) #24

It is likely and did happen to me for first direct mortgage applicstion. I had to in the end go to nationwide and ask for my last three last statements before I had closed the account…


(Adam Kendrew) #25

While we are on the topics of mortgages. I’ve seen a lot of ‘digital-only’ brokers popping up recently (Habito, Trussle etc). Anybody had any experience with using this type of broker? :eyes:


#26

To add to that list:

Is there a way to download an official bank statement with Monzo yet?

Any mortgage lender is going to ask for this as one of their first requirements. It’s needed to prove income (match payslips to lodgements) and ascertain affordability (your expenses are proportionate to your income).

I’d be very reluctant to use Monzo (or any bank!) unless they can provide you with those statements as, without them, you’ve very little chance of being accepted for a mortgage anywhere.


(Jolin) #27

I believe that providing statements is a (legal?) requirement with a current account. It’s definitely been worked on at some point. The last word from Monzo on this was the beginning of September, but we are still waiting on an update from @Sam (hint, hint :wink:):


(Lawrence Ferguson) #28

I tired habito but the best they brokered wasn’t good enough from what I could see on the market.

Through my own research I found First Direct the best but surprisingly, Atom bank was second.

First direct mortgage has cost me nothing so far. No fee and wavied the valuation fee because I’d valued my property under their own online valuation. Waiting for an offer letter now (I hope!)


(Brian Gordon Williamson) #29

In conclusion all I will say is this…

“A fool and his money are easy parted”


(Andre Borie) #30

Do you mean it’s foolish to pay someone to deliver a service? If so I guess all our employers are fools as well as they’re paying us paychecks in exchange for our work.


(Adam Kendrew) #31

Oh, good to know - thanks. Got all this to come the end of next year hopefully! :sunglasses:


(system) #32

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