Mortgage Brokers Vs Banks/Building Societies

ukbondraider

Hi all,

just wanted to ask what the difference is between going to a mortgage broker and a bank/building society.

Regarding the latter, one would compare all the rates available on his/her desired mortgage e.g a 10 yr fixed rate (using the internet) and then call the appropiate bank/building Society to discuss application and eligibility.

So Building Society X can offer me 4.69% 10 yr fixed rate, 95% LTV and 4 x my Salary.

With this knowledge should I then go to a mortgage broker i.e are they likely to be able to offer a better rate than all of the banks/building societies?

Are mortgage brokers able to pull off certain conditions that a bank/building society would never agree to? e.g a 100% mortgage and an amount that is 5 x my salary.

I have never been to a broker before but as I am looking for a 100% mortgage that is 5 x my salary I guess I have to see a broker. Basically am I incorrect in my perception that a broker can get you a mortgage where a bank/building society would refuse?

dunstonh

just wanted to ask what the difference is between going to a mortgage broker and a bank/building society.

Assuming you mean independent/whole of market mortgage advisor vs bank, then you are looking at a bank offering one range of mortgages from themselves only. A mortgage broker who is independent can investigate the whole market and place the mortgage with whom they believe to offer the best deal for you.

Mortgage brokers can usually offer the same deals as the branches, although at times there are branch only deals. Equally, there are often broker only deals not available from branches.

Are mortgage brokers able to pull off certain conditions that a bank/building society would never agree to? e.g a 100% mortgage and an amount that is 5 x my salary.

Yes.

I have never been to a broker before but as I am looking for a 100% mortgage that is 5 x my salary I guess I have to see a broker. Basically am I incorrect in my perception that a broker can get you a mortgage where a bank/building society would refuse?

It should really be a case of whether you really want to go into a mortgage that high with no deposit at all. The lenders that would look at that would be more expensive than the mainstream.

ukbondraider

dunstonh wrote:

It should really be a case of whether you really want to go into a mortgage that high with no deposit at all. The lenders that would look at that would be more expensive than the mainstream.

Thanks for the reply.

I will make an appointment with a broker next week. Out of curiosity, how much more expensive will it be?

The mortgage will actually be for my long term girlfriend who earns £33K per year.

4 x £33K = £132K
5 x £33K = £165K.

She wants to buy a house for £160K.

If she went to a building society who would only lend her £132K, providing she put down 5% deposit she can get a 10 year fixed rate at 4.69%. (so £132K at 4.69%)

Now assuming she went to a broker to ask £160K, what rates should I be expecting for a 10 year fixed rate (at 100% LTV). Are we talking 5% or much more expensive? If so what approx level?

Thanks

MortgageMamma

Hi There

as far as I'm aware the only lenders I know of that will do 100% ltv on 5 x salary will only do so for professional graduates.