First time buyer question - broker or bank?

Jennyf

Registered User
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im sorry if this has been done a million times before but me and my partner are hoping to get onto the property ladder very soon (personal circumstances are changing in a month making our borrowing power much stronger) so I'm doing some research while it comes to that time. I want us to be as prepared as possible.

I'm in contact with a mortgage broker, I have not committed to anything however. I checked with AIB and they gave a provisional approval in principal of the amount we need today using the income that we will be on in around a months time.

Now to get the amount we need, we will need to get an exception so I'm not fully trustful of AIBs online quick assessment.

Would we be better to use the broker or chance our arms and try to go direct to the banks? Considering we'll need an exception my head is thinking broker may be better.

The broker were taking to is an independent, We pay a set €350 fee which is refundable if they don't get the amount we need. From what I've been told he is not paid by the bank so that may get rid of any favouritism?
 
IF you're only going to have such a short period of improved finances and still need an exception, a broker is likely a good call. They will know how to present your finances to have best chance of getting what you need.

You don't say what circumstances are changing. Your history over at least the last 6 months will be assessed by all providers, how influential your changing circumstances will be will depend on the nature of this change.
 
Circumstances are changing In the sense I'm getting a promotion and my partner is getting a substantial payrise.

My one is a weird one, while I'm getting promoted I'm still on the same money, however currently a large proportion of it is considered extra income not guaranteed so doesn't count, but once promoted the entirety of my salary is guaranteed income so it makes a huge difference in our borrowing.

We're both permanent employees in the public sector with guaranteed pay rises each year, so we're hoping with the help of a broker we'll be considered for exception. There so many ifs and buts with it and we're just being hopeful that they'll look at these change of circumstances as a good thing for our payback ability.

The exception is just to get the area we want, we can still get a decent new build with our 3.5 times our salary but a bit further out on the commuter belt.
 
A broker might help in your case, but I don't see why you're paying them?
They get commission from the banks if they're an approved intermediary.

Do you need an LTI or LTV exemption?
 
Apparently because they're independent they're not paid by the banks? I was told if they didn't get the amount we needed it's refunded, I could ask further however into this.

Would probably be a LTI exemption as at 3.5 times were a bit under (by around €28,000) for the amount we want. Like I said however, our 3.5 times will still get us a decent 3 bedroom, but the extra push with the exception will get us the area we want too!
It's not beyond the realm of possibilities to use our savings to make up the difference but then we'd be stuck for furnishings and such. We are hoping to leave €10k - €20k available for when the house is actually purchased.
 
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