One of our followers recently asked us to write a blog post on how to choose the best service providers regarding property purchases. We've written some quick tips to help you out.
We would always suggest asking friends and family for recommendations. Don't underestimate the value of speaking to people that have already gone through the house buying process. They'll have tips and recommendations for you that may save you money in the long term.
Property Cohort have purposely partnered with Arne Grey Mortgages and Mullis and Peake as we have experience of working with both companies and have used their mortgages and conveyancing services for all properties that we have purchased / sold.
2. Read reviews online
The majority of companies have an online presence these days. Do a Google search on any company and you'll be sure to see reviews on the quality of service they offer. Just like you would read a hotel review before going on holiday or a restaurant review before eating out, we would also suggest you read reviews before paying for a conveyancer, mortgage adviser or surveyor service.
PC Tip: Scout around for a range of prices - The cheapest option doesn't necessarily mean the worst and likewise the more expensive doesn't necessarily mean the best.
3. Mortgage Advisers within your bank
Arranging an appointment with a mortgage adviser within your local bank branch as an alternative to an independent mortgage adviser can be an option. It is important to note that mortgage advisers based in a bank will only be able to advise you on their own product range. Meaning you could potentially be missing out on better deals from other lenders. Going to your bank can be a good option if you have issues supply bank statements to show earnings or proof of your deposit. Your bank would already know the amount that is in your account and how it is accumulated no further questions would be asked, whereas if you see a broker they will need a detailed trail of how the deposit was accumulated.
PC Tip: It is also important to know that lenders tend to have specific deals for existing customers so it's probably worth enquiring with your existing bank.
4. Use an independent mortgage advisers
Some mortgage advisers and brokers will only recommend mortgages that are available from a select 'panel' of lenders. For that reason, it’s a good idea to ask your mortgage adviser whether they are ‘whole-of-market’, meaning they consider all products from all available lenders. Using a 'whole-of-market' broker increases your options and gives you access to a wider range of deals.
You will find that you have more flexibility with independent mortgage advisers, as you are not bound by appointment with a bank adviser. You can communicate with them outside of working hours on different mediums whether, email, calls, or communication apps; some are even flexible enough to meet with you at times and places of your convenience. Independent mortgage advisers may also have exclusive deals that in branch advisers do not have.
5. Compare The Market
In addition to speaking with a broker, you may wish to do some of your own research to see what deals are available on the market.
PC Tip: Taking the time to speak to a professional will give you insight into the mortgage adviser you will be dealing with; the mortgage process is long and it is important that you go through it with someone you feel comfortable and have confidence with.
6. Who can lend you the most?
A big issue for many First Time Buyers is meeting the affordability criteria lenders set. Some mortgages providers lend 4.5 x your salary whilst others lend up to 5 X your salary. Naturally; many First Time Buyers will prefer to choose the lender that lends them the most amount of money so it’s worth doing your research to see what lenders lend 5x your salary.
PC Tip: You generally need a 15% deposit in order to get a mortgage based on 5x income.
1. Speed & Efficiency, finding a professional who is quick but diligent. You also want a professional who is transparent and provides clear advice making the process as streamlined and simplistic as possible.
2. Out of the box/Go the extra mile – There is a difference between a professional who simply does what you want, and will take what you want and offer more. Adding new ideas could help guide you down a better route.
*This article is for general awareness only and does not constitute legal or professional advice. The law may have changed since this page was first published.