Do I really need a mortgage broker?

kingstreet

2cb wrote: »

I get the point that brokers are good for finding a mortgage when you don't meet the strict criteria for the best deals, and so I don't need one in that respect. But, what 'regulatory protection' do they offer? Would I benefit from this?

The advice process involves analysis of your circumstances, sourcing of the best deal and detailed recommendation of suitability, based on your stated needs and future expectations.

If the recommended product proved later to have been inappropriate, you would have the right to complain and possibly to compensation to remedy the situation.

Banks and building societies work on the basis of information only, providing illustrations which you accept or reject as you see fit. You take responsibility for your actions and the lender accepts none for the choice of product.

In the current climate, business levels are lower, but the cost of meeting regulatory requirements has increased. It's safe to say a large proportion of the income a broker receives from a mortgage, whether fee or commission, is eaten up in the fixed cost of actually being in business.

I suggest you speak to an independent broker to see if the services on offer are of sufficient value to make it worthwhile you paying a fee. FWIW, I'm sure there are brokers who would recommend the HSBC product and do all the work for an "advised" sale for you and prepare you and the documentation you'll need for making an application for a reasonable fee. That way you get the best of both worlds!