We had a chat to Nick Reilly from Inovayt and RBK Finance about mortgage broking to get more of an insight into what is it they do.
1. Why did you get into mortgage broking?
The world revolves around money and that concept has interested me from a young age. I always wanted to be a business owner and thought finance was the best way to go, so started university doing banking and finance.
I didn’t love university life and decided to do part time study after my first year so I could get a kick-start on my career. I found a job in the admin side of mortgage broking, which was first exposure to the industry. The more I was around it, the more I loved property. I then moved into a role dealing directly with clients, found it incredibly rewarding and knew that was the direction I wanted to take my own business in.
2. When should people start looking for a mortgage broker?
You should come in for a chat as soon as you start considering buying a house. We help you determine if you’re in a position to buy, the position you need to be in and help you to plan how to get to the point of being able to enter the property market.
3. What services do you provide?
When you buy a house, there are three main parties involved other than yourself. A mortgage broker, a solicitor and a real estate agent. We are the mediator between the three groups, controlling the process so you don’t have to. We give you a step-by-step guide of what needs to happen for all three parties to complete the home buying procedure, making it as smooth and easy for you as possible.
On the financial side, once you come in for a chat and supply your documents and information, we work out who is the best lending option for you based on cost and your preferences. We then deal with the banks on your behalf to get the best deal possible.
We find that the clients who often need the biggest hand are first home buyers. You’ll receive a thorough guide on how everything works from the first chat with us to the keys of your new house in your hand, making the experience less daunting and more exciting.
4. Do you have some tips for saving for your first house deposit?
Importantly, find a mortgage broker so you can start the process knowing how much you need to save and what position you need to be in. Then you can take the next steps.
Without a budget, saving a deposit is close to impossible. It’s your number one tool. There are a few tips I give to my clients to ensure it works for them.
- Keep it realistic! This is the absolute key.
- Set yourself savings goals and a timeline to stick to.
- Make sure you include some recreational costs in your budget. Everyone needs to have fun and if you don’t allow for it you’ll end up resenting your plan and the temptation to give up will be there.
- Put the money somewhere you can’t touch it. If it’s mentally unavailable then you’ll have an easier time putting it away and leaving it there.
At the end of the day if your 12 month plan turns into an 18 month plan, it’s not the end of the world. The reason I harp on your budget being realistic is because you’ll meet your savings goals and stay really positive about the whole process. If you start missing your goals it’s far easier to give up and spend that money on another Europe trip.
5. As a general rule of thumb, how much should you be looking to save for your first house?
A 10% deposit. The sooner you get into the market, the better. If you take another year to save more you might be costing yourself another 30k in purchase price, so I tell my clients to get in as soon as you can.
If you can get a guarantor loan with the help of your parents, you’ll find it much easier to get into the market. We would generally sit with the parents and borrower so everyone completely understands how the situation works and you’re all comfortable and happy.
6. Why should someone come to you over their bank?
The bottom line here is, banks are profit based. As long as they’re making as much money as possible, they’re happy. We on the other hand, are client relationship based. We don’t view clients as transactions but rather people who we have life long relationships with. 99 out of 100 times, we will get you a better deal than a banks will. Then we’ll continue to ensure that you have the best deal possible by re-pricing your loan every couple of years, reflecting the current rates. Banks will never give you this service. It’s more personal, and it will save you money. Win win!
A big thank you to Nick for taking the time for this interview! Give us a buzz if you’d like to discuss how Nick can help you.