Ideal comments for Ideal Home

ended 22. February 2022

A freelance journalist is looking for comments for three consumer articles he's writing for Ideal Home (some glossy mag you'll see on the shelves in WH Smith, not that anyone commutes any more). He's looking for tips and comment on the following:

  • Things you should never say to your mortgage adviser - the phrase that advisers dread to hear... (could be fun this!)
  • Insurance mistakes every homeowner should avoid
  • Things you should never do when buying a house

Go go go. And no waffle.

9 responses from the Newspage community

"Any adviser's worst nightmare is where a client says 'just between you and me'. There is never a 'just between you and me' when it comes to being a mortgage broker! It's vital that you are open and honest about your circumstances, but please remember brokers have a duty of care and whilst we always want to help you purchase that dream home we cannot bend the rules."
Things never to say: "I don't mean to put you in an awkward position, but, I am not going to live there". "How much do I need to show in my payslips for a mortgage of £XX" "I shouldn't tell you this, but....." "My (relative/best friend/partner) has a mortgage and they say I should....." Insurance mistakes: Buy on premium price withhold information that may be relevant Believe insurance is "sold to increase earnings for the adviser" Things you should never do when buying a house: Believe the agent is working for you Instruct solicitors because they were the cheapest quote Use the mortgage adviser or solicitor recommended by the selling agent If you need a mortgage, agree a purchase without agreeing your mortgage in principle first.
The truth, the whole truth and nothing but the truth! You should always tell your mortgage broker everything - it will come out eventually anyway, so let's not waste lots of time and energy trying to hide something from a lender, the truth will out and then you'll have put yourself in a tight spot with both the lender and your broker. The phrases we dread to hear are once your application for a mortgage has been made. Then the worst things to hear are; "I've just changed jobs", or "I've bought a new car on a PCP". Material changes to the application have to be reported to the lender, so you could have just torpedoed the purchase of your dream house - speak to your broker before making big changes to your situation. The biggest insurance mistake is doing your policy online, direct with an insurer, or via comparison site. What most people don't realise is that plans arranged via advisers are of a higher quality that direct ones - even from the same insurer! This is because in the direct/online market all that matters is price; so insurers will remove elements of cover, or add small print, to reduce the number of claims and so allow them to market a cheaper product. Brokers won't play this game and so the quality of the plan is higher, meaning more chance of a successful claim if life doesn't go to plan. The reason for this is simple; when you call us to say something horrible has happened we don't want to be worried about the claim because we arranged a cheap, rubbish policy for you! We want to be confident that we've given you the very best we could arrange for premium you could afford. What should you never do when buying a house? Compromise on location. You can do virtually anything to a house to make it right for you. Except pick it up and move it if it's in the wrong area. So location, location, location...
Things you should never say to your mortgage adviser: ------------------------------------------------------------------------ I'm spoken to two brokers already Can I borrow £300000 with a £20000 salary? Hello, I want a self-cert mortgage please. Insurance mistakes every homeowner should avoid -------------------------------------------------------------------- The biggest one is failing to shop around for your building and contents insurance including in the month before the policy auto-renews. Paying out seperately for mobile phone insurance when many home contents insurance policies already cover lost or stolen possessions. Not taking out life insurance to cover the mortgage payments should the worst happen. And if you're self-employed, not taking out income protection if you're unable to work for any period of time due to ill health Things you should never do when buying a house? ------------------------------------------------------------------ Tell the estate agent you've fallen in love with the house Tell the estate agent what your budget is before negotiating the sale price
The most common phrases that give mortgage advisors the shudders are: "Right, I'm going to be honest with you..." "How much income do I need to show for..." "I shouldn't really tell you this but...." Be straight up with your advisor. 9/10 it will come out in the wash anyway, just later down the line when you have spent money and effort. If it doesn't work now, that doesn't mean never. -------------------------------------------------------------------------------------------------------- Trying to hide information when applying for an insurance policy is a false economy. You're likely to end up paying for a policy that will be found void in the event of a claim. No one enjoys paying for insurance, but as least it's worthwhile if it serves a purpose. Not all insurance policies are created equal. Simply selecting a policy based on cost might mean less cover when you need it, or even no cover at all. For example some mortgage protection policies can cover different illnesses, depending on the insurer and type of policy selected. Working with a professional will help you get the right cover. -------------------------------------------------------------------------------------------------------- When buying a house 90% of the stressful issues arise during the legal process, and often, they could have been avoided. Never go with the absolute cheapest solicitor you can find; you're more likely to have problems. Equally, a high premium doesn't guarantee quality either. Ask your mortgage broker for a recommendation. They work for you and it is in their interest for the process to be as smooth as possible.
The number one facepalm moment I had was when doing medical questions with a couple for their life insurance. One of them disclosed they'd had treatment for an STI - their partner didn't know and they ended up not buying the house together. I just wanted the world to swallow me up. Just be aware that if you're buying with someone you're going to know a lot of personal information about each other!
Things you should never say is my friend down the pub said... are they qualified and on the hook for the advice another pet peeve is what's the way around it especially if you are trying to manipulate your income this just leads to the phone being put down as no mortgage case is worth a prison sentence. Typical insurance mistakes are thinking the comparison sites offer good cover they don't it's the cheapest and worst policy that provider offers hence why it's cheap, and never assume you will be eligible for life and critical illness cover as it's driven by your own and family medical history as to what cover will be offered and what exclusions may be applied quite simply speak to an advisor. When buying a house view the property during the day and drive by at night and on the weekend to see if you will any parking issues as first thing in the morning the road may be empty whilst everyone is at work soon as it's 6pm it can turn into a car royle rumble.
The things I hear most that set off alarm bells are. 1 - I don't have any credit issues 2 - How much do I need to declare to get X amount for a mortgage? 3 - Will the bank want to see my accounts and wage slips? 4 - I know how much I can afford, can't you tell the bank I want more? 5 - What do you mean I need to declare all my cash work as proof When you are sitting with clients completing a fact find meeting 1 - How much are you spending on only fans (partner googles it). 2 - Can you ask your friends to stop doing bank transfers saying weekend drugs/hookers. Underwriters tend not to see the funny side Please get good quality insurance, I had it and needed it and if I had gone for the cheapest premium via comparison site, I would have been about £10K out of pocket for just £8 a month difference. Also, always get new quotes yearly on Home insurance and update your contents correctly. When you are buying a house, research it and research it again! Go and visit the area during the day, during the night and at weekends. You might have a neighbour that is not so considerate and once you are in, you are in!!
Things you should never say: 1) Just between you and me... 2) My friend down the pub said... 3) Yeah, but what about that good deal on the TV advert? 4) Oh, I forgot about that loan! 5) I didn’t tell you this but... Insurance mistakes to avoid: 1) Under insuring your contents to get a cheaper premium 2) Not disclosing an illness 3) Paying £15 a month to insure your mobile but nothing to insure your health 4) Not disclosing a previous claim 5) Not considering insurance in the first place! Things never to do when buying: 1) Look at it at night 2) Not bother with a survey 3) Believe the selling agent is your new best friend 4) Fall in love with furniture that won’t be there 5) Assume that a garage door has a garage behind it (mine was a store cupboard!)