Why do you need a mortgage broker?

steven589

I ask this question since I bought a flat last year without using a mortgage broker, as I didn't see why i needed to pay them commission. I will soon be helping my girlfriend buy a new house and once again, I don't see the need to go through a mortgage broker.

Am I missing something here? What do they actually do that you couldn't do yourself? I obviously sought professional advice before I chose my mortgage last year, but other than that I sorted out the actual mortgage application and legal stuff smyself.

There doesn't seem to be any advice around that says don't use a mortgage advisor though. I am worried I'm being ripped off somewhere along the line but don't even know it!

Any advice greatly appreciated!

Steve

Mrs_pbradley936

If your circumstances are very straight forward and you can produce at least 3 payslips, P60 and so on, as well as buying a regular type of property you will be just as well served by popping into any High Street Lender. However if you need to “self cert” or are buying a place with (for instance) a thatched roof, shared easements (you do not own the driveway to your house) etc. etc. you will need a broker who will be able to tailor a loan to you and your circumstances because they are outside of the range offered. Although the big names may well end up being your lender.

barnaby-bear

mlmoneysaver wrote:

I used a fees free, whole of market broker. They can search the whole market, I can't,

Yes you can! How hard is it to look at one spread sheet? A few excel equations to filter extended tie-ins etc speeds it up - whole of market available free at
http://www.fsa.gov.uk/tables

silvercar

Actually, brokers have access to some deals which are "broker only" so you won't have access to them on your own. If you go to a whole of market, fee free broker I don't see what you can lose.

I have arranged my own mortgage in the past and also used brokers, when circumstances were more complex. In one case I just needed a mortgage to be arranged within 3 weeks; a broker knew who could act quickly and who couldn't.

dunstonh

I ask this question since I bought a flat last year without using a mortgage broker, as I didn't see why i needed to pay them commission.

Instead, the commission was kept by the company or paid to their representing branch.

Am I missing something here? What do they actually do that you couldn't do yourself?

Broker specific deals, sorting out problem cases, doing all the legwork and paperwork, coming to your home/work (if required).

All at that usually done at no extra cost to you whatsoever.

Yes you can! How hard is it to look at one spread sheet? A few excel equations to filter extended tie-ins etc speeds it up - whole of market available free at
http://www.fsa.gov.uk/tables

FSA tables are notoriously unreliable. They are not anywhere near complete and options and variations are often not included.

Raggie

barnaby-bear wrote:

Yes you can! How hard is it to look at one spread sheet? A few excel equations to filter extended tie-ins etc speeds it up - whole of market available free at
http://www.fsa.gov.uk/tables

Not sure these are "whole of Market".. we have just re-mortgaged.. and our provider does not even appear on their list..

clutton_2

i use a couple of brokers so that they can fiind me the best 3 products from the whole market - one charges me a fee, the other doesn't.

AndrewSmith

steven589 wrote:

I ask this question since I bought a flat last year without using a mortgage broker, as I didn't see why i needed to pay them commission.

You don't pay the broker commission, the lender does as it is far cheaper for them to accept business from brokers than to tie up their own branch resources.

I will soon be helping my girlfriend buy a new house and once again, I don't see the need to go through a mortgage broker.

That's because you have never actually used one I would assume.

Am I missing something here? What do they actually do that you couldn't do yourself? I obviously sought professional advice before I chose my mortgage last year, but other than that I sorted out the actual mortgage application and legal stuff smyself.

Yes you are missing something. A whole market mortgage broker will be able to advise you of the most suitable product available from the lenders without bias. They complete the paperwork for you, liaise with EA and solicitor, process the application etc but most importantly you are fully indemnified against the advice given.

There doesn't seem to be any advice around that says don't use a mortgage advisor though. I am worried I'm being ripped off somewhere along the line but don't even know it!

If you are using a fees free true whole market broker then why would you be getting ripped off? It will cost you no more and you get the reassurance that you have the best product available for you.

The trouble is that many cynics think brokers simply use 'google' or the likes to source a mortgage. We actually use sophistcated industry only sourcing software which has access to every lender's products, even those that are not offered through the branch network. It is not uncommon for a broker to have access to a product that that lender cannot offer via it's branches on the high street. Then there is the fact that the broker will have access to lenders who only deal via introduced business.

A true whole market broker will have access to every prodect except those offered by, for example, HSBC who only deal direct.

Any advice greatly appreciated!

Steve

Give it a try, you never know you may learn something.

Doozergirl

I phone my broker to tell him I need a mortgage. He then spends time looking for the best deal.

I then turn up at his office, drink tea, eat croissants while he gives me the available options. I then watch him fill out the form online, sign it, give him the credit card details for the fees and go home. Some weeks later the money magically arrives to pay for the house.

I don't pay for it and in fact, he's buying us a curry next weekend. :beer:

Why WOULDN'T I use a broker?

clutton_2

i dont even have to leave my house !! all my brokers do it all over the phone for me !! very occasionally, they send me something to sign and i post it back - they will be getting a very expensive bottle of wine fairly soon !!!

Doozergirl

clutton wrote:

They will be getting a very expensive bottle of wine fairly soon !!!

Should be the other way round if you give them enough business!
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