Are Brokers rates better?

willy_2

just about to take out new mortgage (should have sorted it out before the rates went up last night I know!) and was wondering if going through a broker is any advantage. I spoke to L&C who came back with a rate that I had identified via this site in about 10 minutes. Do brokers get "special" rates from lenders that us mere mortals will never see? Am I crazy to think I can do this on my own or is it just like shopping around for any product? Any insights very welcome. Thanks

maryjane01

I am not a broker, but in some cases I think they do. I am arranging a mortgage through a broker with RBS, it is 100% mortgage with no higher lending charge. Before I went to the broker I had droped into a branch of RBS because I saw on the internet they had very good rates for 100% mortgages, but going directly through them there was a higher lending charge.

Of course then there are also rates you can only get through a lender and not through a broker, like Nationwide and HSBC do not deal with brokers.

There is no harm in seeing what a broker can offer you.

dunstonh

Brokers get deals from lenders that are not available direct to the public. They also get most of the branch deals as well.

You can do it yourself or you can get a broker to do it. If you go with a broker that charges no additional fees then it hasnt cost you a penny to have someone to do all the leg work, paperwork chasing, compliance requirements etc.

MortgageMamma

Nationwide do deal through brokers

willy_2

Thanks for you replies folks, I've spoken to money supermarket who said they sometimes get better deals but mostly it's the same as online or highstreet. They do however do all the paperwork/application etc which can't be bad.

payless

is it moneysupermarket you deal with or a broker who has paid for your lead?

payless

In thr majority of mainstream cases I would say that the same rates apply whether direct or high st branch.... that said not all lenders have local branch network.

some deals are exclusive to brokers ( in some cases only certain brokers), some lenders only deal direct, and some have different products depending on which distribution channel it comes via

willy_2

I think it's money supermarket themselves. They called me back within the hour of my initial call and spent half an hour taking details etc. Very knowledgeable chap, no hard sell and asked if it was ok to get back to me in the next couple of hours.

Also spoken direct to A&L who quite happily told me they change their internet/broker rates depending on which one is selling fastest ie in order to slow one or the other down. You'd think that if you went direct to a lender rather than via a broker there would be an incentive as they don't have to pay the broker any commission? Just a thought

MortgageMamma

Hi Willy

Moneysupermarket usually just sell your details to the highest bidding broker firm. This does not guarantee the quality of the advice you will received, but its right to give whoever has contacted you a fair chance. You might be as well asking someone else to investigate the mortgage for you and compare the recommendations. Plenty of people do that and whilst it creates extra work for us brokers its good for you to be able to see exactly whats avaiable to you.

If they call back again make sure you get their name and details. They might already have emailed you a key facts document exlpaining their services.

MM

payless

willy wrote:

You'd think that if you went direct to a lender rather than via a broker there would be an incentive as they don't have to pay the broker any commission? Just a thought

In some cases it might cost a lender more to take direct business than introduced business
( salaries, call centres etc... ) and remember a lender only pays a broker if it completes, whereas direct applications cost them money from day one.

payless

MortgageMamma wrote:

They might already have emailed you a key facts document exlpaining their services.

MM

also if its an outside broker ( some might say better than a call centre ) then check if any/ level of fees (not saying always a bad thing...) as I know some brokers who charge more when they have paid for a lead .