Why being independent is important

When you are purchasing a new home emotions often run high and we find that clients fall in love with a property before taking advice.

When looking for a property to buy at some stage you will be in contact with an Estate agent. Never forget that he works for the person selling the house, not you the buyer and as such he is paid a percentage of what the property sells for so the higher the price the more commission he earns.

At some stage in the process the estate agent will ask have you got your mortgage arranged and may even insist that you sit down with 'his' mortgage broker. Luckily not all agents do this, but they want to ensure that you are a serious purchaser and not wasting their vendors time.

When you sit down with a mortgage broker you will discuss your income and expenditure, work out the affordability of your purchase within your budget and gain an agreement in principle from a lender to loan you money and complete the purchase.

If you use an independent mortgage broker like Prior Knowledge, you as clients and us as advisers are the only people to know these figures. Should you choose to work with a in-house estate agency adviser the agent will also know and this can have the following effect;

Mortgage agreed in principle at £220,000

Offer placed on a property at £180,000 (£20,000 below the asking price of £200,000)

Agent rejects your offer as he 'knows' you can afford a higher amount, but lets you know that he will speak to his vendor to see if they will accept a lower amount. It is worth mentioning again that the agent is paid based on what sale price he achieves for his vendor.

The agent will probably come back to check if you will meet the vendor halfway (knowing you can afford to) he will probably mention that he has negotiated a £10,000 discount for you and tell his vendor he has managed to gain an additional £10,000 on the sale price.

In the process of negotiating with agents we feel it could be worth thousands of pounds in purchase prices and interest on your mortgage to you to keep your budget hidden from the estate agent by working with an independent.

Seek expert advice from experienced mortgage brokers that understand the process and are happy guide you through.

Your property may be repossessed if you do not keep up repayments on your mortgage.

For mortgage advice you can choose how we are paid: pay a fee, usually 0.5% of the loan amount, or we can accept commission from the lender.

Prior Knowledge
Caxton Point
Caxton Way
Stevenage
Hertfordshire
SG1 2XU

Tel: 01438 726464

Prior Knowledge is an appointed representative of Sesame Ltd. The site is intended for UK consumers only. Principal: A Prior