What's the point of a mortgage broker?

mark306

Okay my title with a little flippant, I'm sure brokers are good if you have no idea what sort of mortgage you want.

I want a fixed mortgage over 5 years I can quite easily compare the big players and see the best rates.

Do they have access to better rates than what the general public have?

Mark

Thrugelmir

mark306 wrote: »

I want a fixed mortgage over 5 years I can quite easily compare the big players and see the best rates.

Why take your car to a garage to be serviced. Do it yourself.

Horses for courses. Some people require guidance and assistance.

dunstonh

I'm sure brokers are good if you have no idea what sort of mortgage you want.

Which is most people.

Do they have access to better rates than what the general public have?

in normal times, brokers typically have access to better deals. However, whilst the mortgage market is quiet and lenders have capacity, they are not offering specifically better deals.

_Andy_

For many people, they're happy to do the research themselves - great if it's a simple case and you're financially savvy.

For some though, the case may be complex (high LTV, income issues, adverse credit) or simply they don't want to do the research themselves.

Or perhaps aren't confident with the process and need to be 'hand held' through it.

Simply - brokers are great for some and not for others.

Trying_to_be_good

Brokers are also likely to know if individual lenders have significant backlogs, meaning a longer wait for approval, or are really speedy/good customer service etc.

If you're knowledgeable, 'plain vanilla' with enough time to deal with queries, chase the prospective lender and time before you need the mortgage, it can be easy without a broker. Personally, I've done both at different times of my life!

mark306

Thanks for the feedback.

charleyroo

my broker...

- guided me through a difficult first time mortgage and found an excellent rate, and helped me with the paperwork and chased the bank for updates
- checked in with me every week or so (even though he didn't have to) replied to emails at 11pm at night, right up until we somehow ended up with same day exchange/completion (disaster!)
- chased bank and estate agent before exchange and then when it fell through on the day chased and nagged everyone for me so that we could try again a few days later

i think for a first time buyer with difficult circs, a good broker could be the difference between getting to the point of sitting in your own home, and not doing so

for those who have had several mortgages, understand the market and know their own 'value' to a bank, a DIY job might be easier.

Let_Us_See

If only it was just as simple as applying for the lowest available rate. Simple..................think again!

roonaldo

Mortgage brokers have advisers, they advise you.

sebtomato

When I bought my place two years ago, each estate agent was trying to get me to talk to their mortgage advisors. Not a single one could match a mortgage rate that I found myself. My conclusion is that, maybe in the past when it was more difficult for people to shop around, they had some value.

Nowadays, most lender would rather deal direct with customers, and mortgage brokers have very little value for getting better mortgages...

They may however be helpful in advising people on what type of mortgage to get, and do true cost comparisons (for people who can't do that calculation themselves), but that would be assuming that they are impartial and not trying to push their clients to a mortgage with the highest commission....

dunstonh

When I bought my place two years ago, each estate agent was trying to get me to talk to their mortgage advisors. Not a single one could match a mortgage rate that I found myself. My conclusion is that, maybe in the past when it was more difficult for people to shop around, they had some value.

Estate agent mortgage advisers are often panel. Most are also tied agents for insurance.

Nowadays, most lender would rather deal direct with customers, and mortgage brokers have very little value for getting better mortgages...

Whilst supply and demand is low, its cheaper for lenders to use their own staff. Once demand picks up,they will need brokers and you will see better broker only deals again.

but that would be assuming that they are impartial and not trying to push their clients to a mortgage with the highest commission....

If you are concerned about bias then you just employ the adviser on independent basis instead and get a commission rebate. However, if you actually realised the size of the typical commission, you probably woulndt have that bias perception.