Is it worth visiting numerous Mortgage Brokers?

ukbondraider

Have already seen one Mortgage broker who can provide me with my 5 x salary Mortgage, 95% LTV but at a rate of 5.39% (5 yr fixed rate).

As this rate is slightly high would it be worth visiting other brokers to see if they can get a better rate or will they only be able to provide the same rate?

I know due to my criteria that I am very limited in the lenders open to me.

Is it true that visiting many Brokers and consequently getting many credit checks impairs your credit score?

Thanks

homer_j_3

Firstly Brokers dont credit score you, they simply use the information you provide to see what products are available and what is most suitable to your needs. Credit checks are done after application has been submitted.

If you have visited a whole of market adviser then my answer would be to say "no do not visit many different brokers unless you do not feel trustworthy of this broker"

if the broker was not whole of market but limited to a panel then yes it may be worth going to see one who is whole of market but other than that, I would accept what you have been told.

You will know how your broker operates by the Initial Disclosure Document that will have been supplied.

Can I presume that one of the important factors specified to the broker was a requirement for fixed payments and thats why this product has been highlighted. If you had specified the lowest rate possible then you may get a better rate.

Anyway, I hope this gives you an insight to how brokers work and why you have been suggested a fixed product.

stanmoresaver

ukbondraider wrote:

As this rate is slightly high would it be worth visiting other brokers to see if they can get a better rate or will they only be able to provide the same rate?

Is it true that visiting many Brokers and consequently getting many credit checks impairs your credit score?

My advice is to go with your instinct. they should (must?) be whole of market, but mortgage broking and advice giving is so much more than sourcing deals, it's about understanding a clients situation and preferences and being able to match the best product for them.

When you have found someone who you feel understands your situation, stay with them, but don't stop until you find them.

SS

apples1

Not sure if the info is on this website somewhere but Martin gives good advice re mortgage brokers in his book (I just got to that bit when reading it last night). Well worth a look. In short i think the answer (according to what I read!) is yes, but I remember he then suggests you go to a specific broker last (can't remember the name). I'm sure someone else can give you the info but if not PM me and I'll look it up for you.

dunstonh

If you are ever in doubt about any advice from any individual, ask to see the research. If the research stacks up and the company you are recommended is at top position on the printout (or if not top, why not the top one - could be valid reason but you should check anyway), then you should be happy with it.

AndrewSmith

Totally agree with Dunstoh,

Case in point, I was with a client last evening, first time buyer, self employed builder with full accounts etc. Good full status case.

The research showed around 795 products. I did not however recommend he take the cheapest rate product as, in fact, it had a lenders arrangement fee of over £2,500 attached to it, whereas the product that appeared 4th on the list had an arrangement fee of only £599.

Cheap is not necessarily best, one must consider not only the payments right now, but also the total amount payable over the term of the mortgage to obtain a full picture of suitability.

I use a laptop when with a client and always without fail turn the screen to the client and talk them thorugh the system and show them the results of the research. This way there is then no doubt as to the suitability of the product selected.

I never get into 'rate wars' with another broker. I know that the product I have selected when sitting with the client and showing him/her the results is the most suitable for their situation. I hate these brokers that say 'give me a rate and I will beat it', of course we can all do that but it will not necessarily be the right product for the client.

Homer_J

You are quite right that a broker does not carry out credit score, however many of us now have the facility to run a credit check on a client. Lenders will conduct a credit check at 'Agreement in Principle' stage, before the full application is submitted.

Also, 'whole of market' does not necessarily mean the broker has access to all lenders. A broker can be limited to a panel of 15 lenders but still offer 'whole of market' mortgage advice as he has access to all types of mortgage and can source a product to fit all circumstances. To clarify this for yourself you should be asking the broker which lenders they can place business with.

Most corperate estate agency brokers (connells, fox & sons, allen & Harris, roger platt etc) have 'whole of market' mortgage brokers however they only have access to, in some cases, 15 or so lenders.

Hope this helps

Andy