Do brokers have access to deals that we can't find for ourselves?

fillyjonk

I'd say we do understand maths and finance, and we're prepared to research. With the help of information on this site, we've found various deals that look pretty good. Dp in particular is highly unlikely to make a mistake that involves maths or law, mainly because his idea of a good evening is sitting down with a spreadsheet or scanning a t&c schedule for loopholes ;-).

What I'm wondering is whether, if we go to a broker, they will be able to unearth deals that we can't, or whether we're essentially paying for someone else to do the legwork for us?

I'm very conscious that every penny we don't spend atm can go towards clearing a debt that we've (fairly unavoidably) accrued.

From reading another thread it looks to me as though a broker can't be whole of market unless they charge a fee-is that right?

Thoughts?

koexelek

fillyjonk wrote: »

From reading another thread it looks to me as though a broker can't be whole of market unless they charge a fee-is that right?

No it isn't.
For example, I am and I don't

There are deals you can get via a broker you can't get direct... but to be totally honest, there are more deals you can get direct that you can't get via brokers.
If your case is dead straightforward, you are probably best going direct. If it is complicated, a broker might be more helpful

fillyjonk

thanks so much for this. Can I ask whether we'd be a straightforward case?

we are remortgaging, have 17 years left on just over 110k, at the least have around 60% equity (so taking out loan for 40% of the value). The loan is for just under 2x time our annual income.

We'd probably be looking for a fixed rate over a tracker, and would consider paying a higher rate to get a longer fixed term.

Is there anything there that might complicate matters or mean that a broker would be a wise move?

0.5% extra a month seems to be translating roughly into around £100 for us so its well worth getting this right for us! I can see how shaving a 0.01 percentage off could pay for itself pretty fast.

GMS

Without knowing the finer details it is impossible to say if straightforward.

Is income basic only or made up of overtime, commission or bonus?
Any credit problems?

There can be any number of things which can complicate an application.

A 40% LTV is a good starting point for a straighforward case.

A broker would be worth a look for you but agree any fee up front.

dwsjarcmcd

fillyjonk wrote: »

thanks so much for this. Can I ask whether we'd be a straightforward case?

we are remortgaging, have 17 years left on just over 110k, at the least have around 60% equity (so taking out loan for 40% of the value). The loan is for just under 2x time our annual income.

We'd probably be looking for a fixed rate over a tracker, and would consider paying a higher rate to get a longer fixed term.

Is there anything there that might complicate matters or mean that a broker would be a wise move?

0.5% extra a month seems to be translating roughly into around £100 for us so its well worth getting this right for us! I can see how shaving a 0.01 percentage off could pay for itself pretty fast.

On the face of it, it appears straightforward enough. Obviously factors such as your credit history and age come into it but on the basic information, you should fit most direct lenders criteria (such as First Direct etc)

dunstonh

From reading another thread it looks to me as though a broker can't be whole of market unless they charge a fee-is that right?

The FSA messed up big time with terminology when it comes to mortgages.

Whole of market doesnt mean everybody. It could be a large panel but generally it is viewed as all the providers that pay a commission for doing a mortgage.

Fee basis applies to independent. You cannot be independent unless you have a fee basis (and you have chosen that method as most independents can work on whole of market basis as well). On independent basis, as the adviser is not getting a commission, they can include non commission paying deals as well.

So, an independent can go wider "whole of market" than a whole of market adviser would.

An adviser has to be paid for doing a job. If you dont pay a fee, then its only fair they look at commission deals. If you do pay a fee, then they dont have worry about commission (although commission is rebated to you and often that rebated commission can make a commission deal more attractive to you than a non commission paying deal). Remember that commission doesnt mean it will cost more. Many lenders want you to use the branch so their own sales reps are kept busy whilst mortgage volumes are low and that they can try and cross sell you with other products.

fillyjonk

thanks for this. Sounds like everything should be straightforward. Credit history is sound, we've done a recent check and nothing untoward on the records. We have never been late with a payment for anything, defaulted, or anything else. We have a single largeish debt on a 0% credit card atm but this is being paid off faster than the minimum payments.

Pay is straightforward, no commissions or bonuses and dp works for the government. From what I know of mortgages and general finance we have nothing unusual going on.

kingstreet

fillyjonk wrote: »

thanks so much for this. Can I ask whether we'd be a straightforward case?

we are remortgaging, have 17 years left on just over 110k, at the least have around 60% equity (so taking out loan for 40% of the value). The loan is for just under 2x time our annual income.

We'd probably be looking for a fixed rate over a tracker, and would consider paying a higher rate to get a longer fixed term.

Is there anything there that might complicate matters or mean that a broker would be a wise move?

0.5% extra a month seems to be translating roughly into around £100 for us so its well worth getting this right for us! I can see how shaving a 0.01 percentage off could pay for itself pretty fast.

I've just done a comparison and I'd like you to look at the following;-

Yorkshire Building Society - 5 year fixed at 4.19%

£110,000 40% advance, 17 year repayment mortgage = £754.77 per month.

£1,495 arrangement fee, £360 valuation fee, £500 legal costs (assumed).

Total cost over 5 years £754.77 x 60 + £1,495 + £360 + £500 = £47,641

According to my sourcing system, this is the best rate available for the circumstances described. It would be entirely reasonable for a borrower to find this deal, apply direct as it isn't a broker product and be happy with their selection?






In the meantime, I've been busy and I've found this;-

NatWest Bank - 5 year fixed at 4.69%

£110,000 40% advance, 17 year repayment mortgage = £787.44 per month.

£0 arrangement fee, £0 valuation fee, £0 legal costs.

Total cost over 5 years £787.44 x 60 + £0 + £0 + £0 = £47,006.

NatWest direct deal saves £635 over the five years but is ignored by borrower because its rate is 0.5% higher. As an independent broker, I charge a fee of £295, so the borrower is still £340 better off if I find it for them.

However, in my fee I've also provided advice and recommendation to ensure I've found the best deal, putting everything in writing. The borrower has access to complaints and compensation facilities if my advice is found lacking and I'll also fully prepare them for making their application to the lender.

Can a broker do anything for the "direct" type borrower?

Will the "direct" borrower buy insurance products from the selected building society, or bank? If so, why spend so much time worrying about the nearest 0.01% on the mortgage rates when you'll haemmorhage cash on their overpriced poor quality insurance products?

fillyjonk

That is extremely interesting, thanks very much. I do see your point.

I don't begrudge paying someone for a good day's work, not at all. And I 'm not saying its easy to do, its clearly a skilled job.

(and no I would not be spending money on poor value insurance etc-I get my insurance using moneysavingsupermarket or similar and a cashback site where possible)

moneybunny123

For Kingstreet - am I right in thinking that the Natwest Deal is one that is only available to brokers? I only ask because we had seen that very rate by Yorkshire and are due to go into their branch tomorrow to secure it - but then you pointed out the Natwest deal, but I can't find that on their website - or at least, certainly not without a fee.

property.advert

What tosh these comparisons are which include periods after the fixed rate ends. Whilst you should look at what happens and which rate you will change to, you cannot project that logic forward for decades.

What people do fail to realise is that high fees skew costs over the product life far more on a small advance than a large mortgage.