Is a Broker really necessary?

carryoncamping

I realise that a Broker is not absolutley necessary, but I'm a bit puzzled why anyone would use one?

As once you've trawled through all the mortgage options on the Broker websites (such as those Martin Lewis recommends for free) and select one. What's to stop a person going direct to the Building society to sign up, thus cutting out the middle man (the Broker)?

Why does Martin Lewis say you need to be "very money savvy" to use Brokers such as MortgageGenie?

Basically All I want from a mortgage is:
No tie-in after intro period,
Low APR,
Minimal Fees

Selecting a Mortgage on the face of it seems a simple task but Martin has me worried!!

Am I missing something?!!


I'm intelligent enough to figure out for myself whether I want a fixed, capped, tracker, discount rate etc...

MortgageMamma

Unless you use a broker and see what they can do for you how could you possibly know what you are missing out on? If you had a whole of market, fee's free broker, then it would make no difference to the amount you pay for the mortgage deal, so cutting out the "middle man" would have no effect whatsoever. You would probably get a better deal through a broker as we have specials that are not always open to members of the public.

What I'm trying to say is, if you have nothing to lose, why knock it until you have tried it?

Bun

Silly question Mortgagemamma, but do I just look in the local yellow pages under whole of market, fees free broker to find one in my area? I'm in Bournemouth.

Thanks

Bun

MortgageMamma

I can recommend one to you if you like? I know quite a few brokers in your area of the country

loftus

Can you recommend a broker in the Colchester area?

MortgageMamma

yes I know a broker near colchester who would come and see you. want me to PM you his details?

loftus

Yes please Mortgage Mama and thanks.

carryoncamping

I used a broker seven years ago and he did an excellent job (at least that's what he reassured me he had done!) when I got my first mortgage but that was before I had internet access.

These days it's so easy for the individual to do the hunting intead via Internet. I tried independentmortgages but kept getting an error message after clicking the finish button. Nice website by the way.

the following does seem a good offer with no fees whatsoever:
MGenie Offset Exclusive(MG428): 4.69% Tracker - 18 months Do you know of something similar?

basill

Hope its the same thing, I have used the same IFA for my last three mortgages. He came by recommendation. At first I tried the web and the high street to beat his suggested deals. I did, but only by loads of legwork and then only by about £5/year. The real advantage is once instructed all I have to do is sign the papers at his office or my home. The paperwork is delivered, progress chased all without stress for me.
I realise he is on commission, it is made absolutely clear, but if the (in this case excellent) service comes to me effectively free I`m happy!

B

AndrewSmith

Also do not forget that if you take the advice of Mortgage Broker and go with the advice he gives you have total indemnified protection against the suitability of that advice, with full recourse for mis-sale should the advice prove not appropriate, under the FSA regulations.

If you go direct to a lender or via and execution only or non-advice company such as Mortgage Genie you lose some if not all of this protection. That is why Martin says you need to be Mortgage Savvy to use this particular firm.

Martin also states that Brokers are the 'Mortgage good guys' and recommends that local or national brokers should be used to arrange mortgage finance.

I once watched my mechanic fit new brake disks to my car. Seemed pretty straight forward enough. However I would not dream of attempting to do it myself.

Andy

Bun

MortgageMamma wrote:

I can recommend one to you if you like? I know quite a few brokers in your area of the country

That would be fantastic, thank you!

Bun