Should I use a Mortgage Broker?

daveshow

Hello All,

I have been looking at buying my first property and one of the estate agents I have viewed with arranged for me to talk with their Broker/advisor.

I've been looking into mortgages on my own and I have been thinking is there any really need to go through a broker and will it really save me any money I cant save myself?

Also any advice on whether to go fixed rate or variable would be great!!


Many Thanks, Dave

The_J

I wouldn't use an estate agent broker.

If you're confident you know what you are after and your situation is standard then go for it yourself. Remember if it all goes pear shaped it's your fault though.

Dave_Ham

daveshow wrote: »

Hello All,

I have been looking at buying my first property and one of the estate agents I have viewed with arranged for me to talk with their Broker/advisor.

I've been looking into mortgages on my own and I have been thinking is there any really need to go through a broker and will it really save me any money I cant save myself?

Also any advice on whether to go fixed rate or variable would be great!!


Many Thanks, Dave

This is a wind up right?

Firstly, that you even considered the Estate Agents brokers.

Secondly, that you are thinking of saving yourself money vs a broker option. Maybe, then you ask possibly the most basic mortgage question about advice on a fixed or tracker. We know nothing about your situation and you want advice???

The smiley face makes me think this is a Friday afternoon wind up - so I am still smiling...

The J - Is this someone in your office?

daveshow

Aye Dave its a total wind up.


The J Thanks for replying- All I can see that I need to do is shop around for a good mortgage, ensure that I can meet the payments and perhaps in 2, 3-5 years have to shop around again to see if I can get a better rate? what kind of insurance does going through a broker have that doing it my self wouldn't?

Are you against using an agents broker because they are looking for some sort of commision from the agents?

The reason I ask about fixed rate and variable is if any had any theories on the base rate if they suspect it is going to go up or stay low ?

The_J

daveshow wrote: »

Aye Dave its a total wind up.


The J Thanks for replying- All I can see that I need to do is shop around for a good mortgage, ensure that I can meet the payments and perhaps in 2, 3-5 years have to shop around again to see if I can get a better rate? what kind of insurance does going through a broker have that doing it my self wouldn't?

Are you against using an agents broker because they are looking for some sort of commision from the agents?

The reason I ask about fixed rate and variable is if any had any theories on the base rate if they suspect it is going to go up or stay low ?

That's all there is to it yes.
No real insurance, as it's an estate agent broker it will undoubtedly go wrong though.
I'm against estate agent brokers because all of them are morons.
Choose what you prefer.

I still think you are Dave Ham though, he's too stupid to change his name when he's undercover though :rotfl:

Dave_Ham

Yeah - thought I had changed the name - was thinking showdave but thought that may give it away...!

OP - If this is serious, no one really knows what will happen given the current climate and a lot will depend upon your deposit and therefore loan to value.

A 5 year deal at 80% and under may represent a good proposition but certainly better than it will at 90% loan to value.

Estate Agents brokers are money grabbing, unethical advisors or very new to role. Either way you typically get substandard service and they are hardly neutral if you are buying through them eh.

How would your negotiating process go when they have full sight of your financial position..?

GMS

Would you play poker and show your cards to the opposition? If not then why would you speak to a broker within the estate agents who are acting on behalf of the seller to get the highest price possible.

Best to not let them know how much you COULD borrow as opposed to what you are prepared to offer. If they know your borrowing capacity then it could be used against you.

daveshow

Dave I reckon i'm looking at between 65% and 70% LTV.


GMS I understand what you are saying which is why I did keep a couple of cards to myself.


I understand exactly what you are saying thank you for that. I think my best course of action is to go straight to my bank and see what they will offer I am with nationwide and I think I can get a pretty good rate from them.

Thank you all for replying. So the bottom line is avoid going through any estate brokers! I might look into an independent advisor. Is this really recommended however?

Dave_Ham

An independent advisor will get you a better rate than going through Nationwide.

At 65-70% you should have pick of the bunch.

Obviously do not know enough about age, income, employment, employment type, the property you may buy as each lender has their own types of cases/clients that they do and do not like dealing with..

Good luck

daveshow

Dave thanks again for the reply.

Do you mind if I ask one more thing? How exactly is an advisor able to get you a better rate? And would the difference be % rate?

gazfocus

I agree with all that's been said, go with a mortgage advisor but stay away from estate agent ones. I'm not a mortgage advisor and I myself am a FTB so not biased in any way.

I had a chat with a couple of advisors in estate agents and firstly, their fees were ridiculous (£499 and £399) and the one tried to get me to agree to an AIP before I'd even given any details and when I raised concerns about the credit check they told me it wouldn't leave a footprint on my credit report...they had absolutely no idea.

The mortgage advisor I went with only charged £149 and that was only after they had submitted my mortgage application and they're fantastic. They have relationships with people in the banks/building societies and can apply more pressure to get things moving than you or I can. There are also certain lenders that have deals only available through brokers so definately worth a look.