Do I need a mortgage broker?

shiny5437

I'm a first time buyer, bit of a novice but also a fast learner. I've been looking for a mortgage broker but have been feeling a bit bewildered in how to actually find a good one. Do I really need a broker, though?

Firstly, reading from various sources it seems that given the increase in direct only deals, I'll have to do some searching for a mortgage myself anyway.

Secondly, I think I'm in a good position and don't have any particular problems that need smoothing over. Briefly, I'm 30 years old, medical professional, 30K take home per year, no dependents, no debts other than to the student loan company, no adverse credit history, have 40K capital (for deposit, fees, furniture, etc), looking to buy a freehold with a 75% LTV.

I went to my bank (Natwest) and they seemed keen to lend to me and I presume others would be too.

What would I gain financially by going to a broker?

[Deleted User]

You could go to a broker, but be careful that they offer you products from the whole market. You would probably do better trawling the market yourself and seeing what's available. You can always find an offer that suits you and then see if a broker can better it ... but don't pay them a fee!

ACG

You dont NEED an advisor, but as an advisor i have access to direct and non direct products. I can compare pretty much every deal on the market.
I can tell you what paperwork you will need advise you along the way of what to expect. Some advisors dont charge a fee, so why not have someone else do the work for you?

You will also be given advice on protection - so you can be prepared for in the future. Nothing to say you have to take a protection product but if you know what is out there then your armed witht he knowledge and can make an informed decision.

herbiesjp

shiny5437 wrote: »

What would I gain financially by going to a broker?

You would not necessarily gain anything financially - then again, a broker may have access to exclusive deals. Conversely going direct may give access to better deals.

What brokers do though, is guide you through the process, and take away a lot of the stress and headaches associated with a purchase - especially as it is your first.

Not everyone sees the need, and others think they can do a better job.

However you get that in all walks of life, and every job.

So it just boils down to personal preference. If you feel confident enough to deal with the purchase then go for it. However,seeing as it is the biggest purchase you are likely to make, be careful, as mistakes can be costly and you would only have yourself to blame.

shiny5437

Thanks for the replies. I'll see how bold I feel tomorrow!

HerbiesJP, when you say stress and headaches, do you mean outside of acting as an intermediary between the bank and the buyer? I'm not quite sure what the 'added value' of a broker is which is purely down to my ignorance; I'm not casting aspersions on brokers! My (limited) understanding of their role is to search the market, introduce the buyer to the bank, at which point I have to share information with the bank (via the broker), I get the nod from the bank and eventually I get my hands on the money. How might my relationship with the bank differ when conducted through an intermediary rather than directly. Sorry about this - I'm a total novice!