Martins View On Using Mortgage Brokers...

mountainchrisriver

newsaver123... try martin's article here:

http://www.moneysavingexpert.com/mortgages/best-mortgages-cashback

personally I have used London and Country a number of times and can't fault their service... and they are a fee free broker... but read the article for further information... HTH

larameischke

Hi,

We've spoken to two whole of market mortgage advisors from different companies. They have both told us about the mortgages they've found for us, and told us that if we proceed they will charge us around £300 fees for setting up the mortgage for us.

So they've searched the market for free, given us the details....so surely now we just go direct to the lender and get the mortgage direct from them?

Am I being daft? Is there some reason to go through a broker and pay them the £300?

(We're first time buyers in Scotland by the way... in case that influences the advice!)

Thanks
Lara

dunstonh

So they've searched the market for free, given us the details....so surely now we just go direct to the lender and get the mortgage direct from them?

If the lender offers that deal to you direct then yes you can.

Am I being daft? Is there some reason to go through a broker and pay them the £300?

You lose FOS protection as you are doing execution only. You have to do all the paperwork yourself and you have to provide the documents to the lender yourself. You also wont have anyone co-ordinating with the solicitor, lender and estate agent so you will have to do that.

Also, most mortgage brokers will only do a quick and dirty check on first visit. Only once you have commited to using them will they do a full complaint check and the company they source then may be different.

Another option for you is to use a mortgage broker that doesnt charge or if they do, that rebates the commission on the mortgage.

Dan_Collins_2

larameischke wrote: »

Hi,

We've spoken to two whole of market mortgage advisors from different companies. They have both told us about the mortgages they've found for us, and told us that if we proceed they will charge us around £300 fees for setting up the mortgage for us.

So they've searched the market for free, given us the details....so surely now we just go direct to the lender and get the mortgage direct from them?

Am I being daft? Is there some reason to go through a broker and pay them the £300?

(We're first time buyers in Scotland by the way... in case that influences the advice!)

Thanks
Lara

There is nothing to stop you going direct other than your conscience, they are (Meant to be) experts and you are paying for advice and expert opinion. If you went direct to a lender and when it came to form filling and another lender had just brought out a rate lower or a better product is the lender going to tell you? The broker should, I would and save you that fee maybe?!! Although I would have found a fee free broker to start and then nobodies time is wasted! I am not aware of any difference in Scotland other than property law!

Mortgagehero

As per MSE's advice, when choosing an adviser to arrange your mortgage there are two main points to clarify -

1. Is the adviser able to research the whole of the mortgage market to find you the most suitable deal.

2. Will the adviser be charging me for this service. If yes are you happy to pay this fee or would you prefer to deal with a broker that does'nt charge?

There are many advisers out there that are happy to be paid only by the lender and do not charge their clients.

dunstonh

Dont just check they are whole of market on mortgages. Make sure they are whole of market on protection as well. A lot of tied agents for protection are whole of market or panel on mortgages and use that to "pretend" they are whole of market on everything.

Mortgagehero

Good point well made Dunstonh!

MortgageMamma

MortgageHero, who compliance checked your website? you need your company name, address, network/authorisation status, and risk warning put on it and thats at first glance. Forgive me if its in there somewhere but I cannot find it. In your shoes, id take that website down straight away before someone gets in touch with the FSA about it. IMO its not compliant.

lovely_lucre

Hi,
I'm just about to take out a new mortgage, everything has been approved!
There,s a possibility that I may be slightly short of the deposit needed. I estimate that I may have 6-7 weeks to save the lolly, I have just been granted an overdraft for this purpose, of course I would rather not use the overdraft as I think this is an expensive way of doing things. Have you any other ideas as to how I might raise the cash, a loan for me is probably out of the question as I'm not on the Electoral Roll and as a result my credit score has taken a bit of a bashing!
I realise that I have done things AR** About FACE where this is concerned, but heyho!

Your comments would be appreciated(even if I don't like what I hear):eek:

MortgageMamma

How much do you need to raise?