Often over-looked but never under-valued the mortgage broker is an essential part of the team that any high net wealth individual looking to buy a home should surround himself with. Mortgages are complicated, mortgage deals confusing and lenders can be more slippery than an young eels skateboard! Navigating the right deal, negotiating the best terms and actually getting the deal done is a vital part of any purchase and a top broker is worth his (sadly rarely her) weight in gold.
I am lucky enough to know some of the best in the business. Coreco, Anderson Harris, Springtide Capital and in really exceptional circumstances W Coleman & C0 are all on my first team. Although I am nervous of their historic links to Savills I am a big fan of SPF and just this week I was fortunate enough to meet Arc & Co who help finance boats, planes as well as homes!
What I find strange however is that many people will rightly take advice on which mortgage to take yet some will over-look the merits of retaining a buying agent. They want the best deal on the financing but are prepared to take their chances negotiating on their own when it comes to the price they need to fund.
A good mortgage broker in my experience can easily ‘save’ their client 5%+ in costs and potentially hours of frustration chasing down the best deal and getting it through. A good buying agent (cough, mentioning no names) regularly gets 20% off the price. Get the best financial advice from one of the great firms mentioned above but don’t waste the savings you make.
A lesson that Robbie Williams seems to have learned when he bought a country house in Calne, Wiltshire. He reportedly paid £8.1m in 2008 and having done quite a lot to it (installed a footy pitch & a quad bike track) he has now asked Strutt & Parker to find a buyer with a guide price of £5.5m. Oops!
I’m sure he will have had a good mortgage but I bet he wishes he’d listen to some better advice on what to pay in the first place!