Are brokers as useful to FTBs in today's market as they were 3 years ago?

mr_fishbulb

With the number of lending products available being a fraction of what they were in 2007, is it as beneficial nowadays for a FTB to go through a broker?

Comparison websites make it easy to sort based on a number of factors. Plus whenever a lender releases a new leading-rate product, readers of this site soon get to hear about it.

So my question is what other benefits are there for brokers who charge a fee?

VIGILANT22

mr_fishbulb wrote: »

With the number of lending products available being a fraction of what they were in 2007, is it as beneficial nowadays for a FTB to go through a broker?

Comparison websites make it easy to sort based on a number of factors. Plus whenever a lender releases a new leading-rate product, readers of this site soon get to hear about it.

So my question is what other benefits are there for brokers who charge a fee?

I thot you're question was "is it as beneficial nowadays for a FTB to go through a broker?"......then you change it.!!!

benjo

Original question - a good broker is worth his weight in gold.

Second question - they can access deals that are intermediary only, which for me was the best deal.

They do all the donkey work and leave you free to *insert any highly entertaining activity here*.

They know the market conditions/products/lender criteria far better than I do and so I dont waste my time and ruin my credit file making unrealistic applications.

They do stuff that I dont want to do.

TMSL

They stop people paying valuation fees and booking fees and destroying their credit ratings on products that they would never qualify for. You would not believe the amount of times I have had people come to me and say I tried doing it myself over the internet but got declined and I lost my fees. Search engines are fine for getting an idea. Would you go onto the internet and try and find out how to fix your car and then have a bash at it yourself, no you would probably take it to a mechanic.

Also you have a legal comeback as you are getting advice , unlike the banks when you go direct and do it yourself, there is no comeback when you realise the deal you have isnt portable or doesn't allow overpayments or is monthly interest as opposed to daily.

mr_fishbulb

Thanks all. Are there there any who still don't charge a fee then? I met with one a few days ago who said a lot of lenders now don't pay much. I know what's what they would say, but just wanted to check.

mr_fishbulb

TMSL wrote: »

They stop people paying valuation fees and booking fees and destroying their credit ratings on products that they would never qualify for.

So you need to pay for those first before a lender vets you to see if you are actually eligible for one?

naked

I have gone through a broker, mainly so he can do all the running around, filling in the forms, explain things to me etc.

At the time he got a better interest rate on the mortgage than was being offered on the high street, but no free valuation or cashback. The bank have phoned me up though (I made an enquiry through them initially) to tell me they've got a lower rate available now if I moved my account to them. So I could have saved £500 in fees, plus got £500 cashback, and paid maybe £5 a month less
A "this is what you could have won" phone call.

He has been quite good though, phoned me up to tell me they had been and done the survey this morning (he only sent the application off yesterday afternoon)

TMSL

Yes some lenders instruct the valuation day 1 and wont let you hold it so potentially many people will lose the fee and a booking fee once a mortgage gets fully underwritten, you will see many other threads telling simjilar stories.

VIGILANT22

Mr Fishbulb...Do you offer a free service in your occupation?

potter78_2

If you're prepared to do the paperwork yourself, and are reasonable confident/conversant in financial matters I think it makes sense to go it alone. Obviously Brokers serve a purpose, but not everyone would get full value from their expertise IMO.

VIGILANT22

...I guess it's the same if you can fix your electrics why bother calling the electrician....