Broker Vs Bank - Same Rates

thrifty_rob

Hi there,

New to the message board so apologies if this has been covered elsewhere, but I can't find it anyway or explicitly covered in the advice..

I'm a first time buyer looking to get a mortgage now, & have decided on the product for me (with Nationwide). The broker recommended by the estate agent I got the property through has given me some quotes and these match exactly (to the penny) what I get on the Nationwide website.

So my question is are you better acting directly with the bank rather than through the broker if the mortgage products they are offering are identical? Are there are any benefits/catchs with either? Seems more straight forward cutting out the middle man to me, but not too sure.

Many thanks for any input/tips.
Rob

Wh05apk

I the products are identical then it's down to service, if you deal yourself on line, you will have the hassle of chasing the lender, sending payslips etc, and will have very little comeback, if you use the broker, then they will be responsible for the running around and the advice, and sort out any issues if/when they arise.

What is the status of the "broker"? are they whole of market, or working from a restricted panel as many working in agents may be.

Also are they charging you?

R_P_W

I had a long debate with my wife over this very issue.

Due to our circumstances we didnt have a great range of options in terms on lenders. We spoke to lenders directly and i also sat down with a broker.

The product we had in mind was the same one the broker suggested as well....so i had the option to apply direct and save myself a couple of hundred quid and fill in all the paper work and provide evidence etc. Or pay a relatively small fee, sit down with the broker for a coupe of hours, get it all filled in and ask questions in real time.

My personal view is that the fee i paid is money well spent, we have had some issues come back but the broker has dealt with them and kept me informed along the way.

I should point out that i managed to negotiate a 50% reduction on the broker fee. we didnt have luxary of time to apply and be rejected so this was my better option at the time.

lazer

I would go for the broker too, it is much less hassle

My broker did nt charge me any fees, but was an agreement that my insurances were arranged through him (but they were competitive!)

DannyboyMidlands

I'd do it yourself. If it is a straightforward case then it's no hassle whatsoever.

All you have to do is fill in a form and stick some payslips in an envelope. Do you really need a broker to hold the pen for you?

If the bank have any questions they contact you direct rather than relaying through a third party. Which is nice.

Conrad

A broker will be better at trying to sell you insurance, so if you dont want any, or would rather buy your own cheaper, then cut the broker out.

Joe_Bloggs

Check your credit files to the Nth degree before applying for anything or using a broker to apply. It is another dimension to finance that is often only revealed when you are turned down for finance due to something long forgotten or a clerical error.

Get your dates together sort out your P60 and ID /address proof. Read this etc.
J_B.

thrifty_rob

thanks all for the quick replies, that's a really useful spread of advice to take on board.

wh05apk:
the broker hasn't actually said anything about fees or whether he's whole of market, should I be suspicious of that?? Although I have only spoken to him on the phone a couple of times briefly to be fair. I just don't understand what he's getting out of it if he's charging exactly the same rate as the bank, so I'm wondering where he's making his money.

R_P_W

I would guess he is making a commission from any chosen lender on top of any fee.

Wh05apk

thrifty_rob wrote: »

thanks all for the quick replies, that's a really useful spread of advice to take on board.

wh05apk:
the broker hasn't actually said anything about fees or whether he's whole of market, should I be suspicious of that?? Although I have only spoken to him on the phone a couple of times briefly to be fair. I just don't understand what he's getting out of it if he's charging exactly the same rate as the bank, so I'm wondering where he's making his money.

At first point of contact, he should explain their service by use of an IDD (initial disclosure document) which sets out their status/charging structure etc, as he hasn't looks like he is not following procedure and may be trying to hide something.