Remortgage offer....Using the brokers offer myself?

LEEBOLTON1980

Hey I was just wondering if this is possible.......I have contacted a mortgage broker who has found me a good mortgage offer with Northern Rock however like everyone in this situation I am reluctant to pay the £295 fee to them. Is it not possible to ring Northern Rock myself with the offer the broker has suggested and ask them to go directly through me saving them and myself the broker fees? Yes, granted is a little sneaky......there must however be drawbacks to this if its even possible as all would do it...I just not sure what these drawbacks are....can someone fill me in?

LEEBOLTON1980

Or asking a no fee broker to try and get the same offer for me?

ruggedtoast

Why dont you ask Northern Rock?

I'm sure one of the site's brokers will be along in a minute to tell you all about what you'll be missing out on if you go it alone.

LEEBOLTON1980

I was considering asking Northern Rock Im just wondering if its a bit Taboo

kingstreet

So you went to a broker who receives commission from the lender and charges you a fee? If you don't mind me saying so, it's a little immoral if you are now trying to avoid paying for the service you plainly wanted.

How much time have you put into researching direct to lender deals the broker will not have looked at? Did you think of an independent broker?

Here's my comparison with whole market brokers like yours and independents;-

In some cases, using an independent broker may be preferable to a whole market adviser.

Whole market advisers may only select from lenders and products which pay them a commission and they may also charge a fee, while an independent may agree a fee with you and pay to you any commission he receives. If a direct to lender product is better for you, the independent will tell you if that is better as you are paying a fee for the advice.

Here's an example;-

You see a whole market broker looking for a 25 year repayment £150k mortgage on a £200k purchase. You want the best five year fix, regardless of fees. You agree the broker will take commission on any arranged mortgage.

He finds you an Accord Mortgages product at 4.44% fixed until 31/08/2016 at £828.65 per month. The broker will receive commission of £487.50.

You then see an independent broker who agrees to charge you a fee of £299 and to pay you any commission he receives on any arranged mortgage. He also looks at direct to lender deals and explains that in this case, you may get the best deal, but no commission rebate.

He finds you the Accord option, but as you have a fee agreement, he tells you the commission rebate would be £487.50, leaving you £188 better off.

The best overall deal is Yorkshire Building Society's 3.99% fix until 30/09/2016. The monthly payment is £790.93. This is a direct to lender product, so no commission rebate. You've paid a £299 fee, but in doing so, the monthly cost of your mortgage has fallen by £37.72 against the Accord option, saving you £2,263 over the five year fixed term.

I'm sure someone will point out that you can save £299 by finding the best direct deals yourself and that is true. If you have the time and inclination to do that, why bother with a broker at all?

LEEBOLTON1980

This is all above my head independent brokers etc, I basically spoke to my current lender and checked the compare websites. From one such website I recieved a phonecall from a broker firm and was told that the service was free and that he would reserach all these things for me (didnt take him long) and then had this potential great deal.....which I am happy with and suits my situation. I probably will just go with this and pay the money for the service I was merely putting the idea out there to see if its a regular occurance. To be honest my current deal runs out in just under a month and I want it done as quickly as possible before my current lenders standard rate kicks in.

GMS

If the broker told you the service was free how is there now a £295 fee?

Check your IDD (Initial Disclosure Document) and Key Facts which you should have been provided with. These will detail any fees. If there is a broker fee payable did you sign a fee agreement?

Are you sure the £295 is a fee and not lender commission?

LEEBOLTON1980

Literally I have only had two conversations on the phone, I have been told that any advice I am given, his research etc is all free....only ....and only if I accept the mortgage he has found for me ie when its completed do I pay him £295 for the service

GMS

How much is the loan?

koexelek

LEEBOLTON1980 wrote: »

Or asking a no fee broker to try and get the same offer for me?

Surely one of the first things you should ask a broker up front is whether they charge a fee or not ?

I'm sure there are enough brokers out there who would still be grateful for the basic commission the lender pays, without wanting additional payment on top of that

AskMeAnother

Plenty of brokers now offer a "free advise with arrangement fee" proposition. This is bascially because giving you the advice is the easiest part of the job for someone who looks at mortgages for 8 hours a day. But this should be made very clear to you before you get as far as the broker doing reasearch for you.

The most difficult part is getting a mortgage through to completion within whatever timescales you set.

If you want the mortgage to go through as quickly as possible, use a broker - if you don't mind waiting, and don't have a moral issue with dumping the advisor who has already done the work, then go to NR yourself.

Good luck!