Why do people use mortgage brokers?

macaque_2

Why do people go to mortgage brokers for advice? By default, the best mortgage deals will always have the least amout of fat to pay a middle man. Human nature being what it is means that mortgage brokers are least likely to tell you about the best deals.

None of the brokers recommended the market-leading deals for borrowers with large deposits, nor did they explain that a great number of deals are only available directly from lenders. Louise Cuming, of Moneysupermarket.com, the comparison website, says: “Brokers who claim to be 'whole of market' should make it clear to borrowers that this does not include some of the most competitive mortgages available directly from lenders.

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article5775156.ece

olly300

Wrong forum.

However the answer is that not all mortgages where and are open to the consumer to arrange directly with the financial institution particularly if you are not a normal PAYE employee buying a house to live in.

dwsjarcmcd

Use a mortgage broker if

- Your situation is complex, you know little or nothing about mortgages, you are happy to pay someone to do the leg work for you and to see if they can better the deal you have found for yourself (if none of the previous apply)

ad44downey

macaque wrote: »

Why do people go to mortgage brokers for advice?

To keep the mortgage advisers off the dole queue.? They're nothing but glorified estate agents and should be treated with equal disdain.

Dan:_4

ad44downey wrote: »

To keep the mortgage advisers off the dole queue.? They're nothing but glorified estate agents and should be treated with equal disdain.

Did you miss posts #2 and #3 downey?

baby_boomer

There used to be zillions of mortgages - some of which were reserved exclusively for mortgage brokers as the banks sought ways to offload even more mortgages.

And it was probably worth going back to a mortgage broker every two years to get (yet) another deal that meant you were paying less on your mortgage than you got on your savings accounts.

With fewer mortgages available and fewer mortgage sold, the market is a simpler place for the consumer.

Cleaver

When we bought our first house the mortgage broker was really useful. My knowledge of mortgages consisted off: "you borrow money from a bank, you pay it back". Our independent broker was great at just explaining what different types of products were out there, what LTV was, overpayments etc. The fee we paid them, at that time in our lives, was well worth it.

Our last three mortgages I've arranged myself as I'm more inclined to do the research and I'm interested in the money side of life.

Saying that they are pointless is a simplistic view to say the least. Using the same logic you could argue that chefs, hairdressers, travel agents and countless other jobs are 'pointless' because you don't strictly need them to eat, make your hair shorter or book a hotel. I've never used a travel agent in my life, but I understand the role they play.

Lifeisbutadream

I use a mortgage broker/financial advisor.

You could say that about anything - why do you use any tradesperson - usually because they are the expert and will generally do a better job (plus save you time)

I know that he is making money - that is his job though - why would I begridge him of that?

mewbie_2

Lifeisbutadream wrote: »

I know that he is making money - that is his job though - why would I begridge him of that?

I don't hate them, etc. But. If an adviser is making money from the advice then I am less inclined to believe, or buy, that advice. If it was a flat rate fee, say fifty quid an hour, then that might be different. But sales commision for choosing particular mortgages. No thanks.

Lifeisbutadream

mewbie wrote: »

I don't hate them, etc. But. If an adviser is making money from the advice then I am less inclined to believe, or buy, that advice. If it was a flat rate fee, say fifty quid an hour, then that might be different. But sales commision for choosing particular mortgages. No thanks.

I see your point, but having done both (I used to arrange my own) I am much happier using one (at the moment) because I simply do not have time to spend ringing round or researching.

mewbie_2

Lifeisbutadream wrote: »

I see your point, but having done both (I used to arrange my own) I am much happier using one (at the moment) because I simply do not have time to spend ringing round or researching.

Er how many mortgages do you have? I have one, and years before that I had another one. Not a lot of work there for a mortgage broker. I guess it's all to do with two year fixes, and constantly re arranging mortgages. Hmm. Well in that case maybe I'd use one.

I was thinking old school, 25 year mortgage, see you next time I move house.