First time buyer, Mortgage broker vs straight to Bank

Rascar

Hello,

I am a first time buyer, trying to weigh up whether it is worth going through a broker or go straight through my bank (Lloyds). The Mortgages Lloyds are offering seem to be fairly comparable to others on the market, is there an advantage of going through a broker who may have a wider range of products available?
To be honest I like the simplicity of going through my existing bank, but worried maybe I'm taking the lazy option.

I guess the advantage of a broker is that he will act in your interest and talk through any issues with you, though I like to think I am reasonably financially literate. Apart from the obvious things to look out for, early repayment penalties, is it portable, fixed rate period etc, are there any other things to be looking out for in the small print?

Also has anyone had experience with Lloyds and there efficiency, or lack of(!) when it comes to mortgages?

Many thanks for any advice.

lee111s

Look around, especially at building societies. I've just gone through the process and to be honest I found Lloyds' rates to be pretty poor in comparrison.

kingstreet

I agree. LBG products are not very competitive at the moment. Combine a broker with direct approach to LLoyds and other direct-to-lender options, for an overall view of the market.

If you are a pure "rate-chaser" with a square peg/square hole profile, chances are a direct offer will turn out cheaper for you.

Rascar

Thanks, and apologies I realise I probably should have read all the sticky thread on this first!

If I were to go for a full application direct and was turned down (though I have no reason to believe I would be) would this count against me in future applications in terms of a credit check?

hamster2013

hi
will depend how good you feel your case is
if you want low hsbc rates, then going through a broker will not help

i suggest doing some simulations online or in branch without making applications - so that there is no credit check done on you, to see what you are getting

if you feel comfortable then, take it to the next step yourself

i am not all for brokers who i feel are overpriced for the work they do.
invest £5 in a good folder or organizer file, and start collecting all your papers that support your case
i have my file ready and did it all myself, got it all from work contract to all my payslips (banks dont need all, but this is now allowed me to be organised for life lol), all bank statements, copies of passport, my bills, etc

good luck

EvilJaz

I've been looking around quite a bit. Also debating the use a broker or not issue.

Building societies seem to offer better rates (especially if you have a LTV). Personally for me YBS has been the best

EMac_2

Rates and fees are important but remember that a broker is selling you their service, not just the products they have access too.

You do 1 interview, provide your evidence to 1 adviser and should anything go wrong with the first application its the brokers job to move it to another lender without you having to go through numerous application processes with different lenders. Then there is the insurances to consider too.

Thankfully, due to the level of service banks invariably provide to direct customers I pick up a lot of business . As previously said tho, if your proposal is straight forward and you have the time, knowledge and patience then just go direct. Best of luck

kingstreet

If you do go direct to a lender which has very attractive mortgage rates, be aware that the insurance products they sell, which are normally higher-priced and inferior to those available elsewhere, are how they make their biggest profits.

The have one product and will try very hard to convince you it's the best thing since sliced bread. Check the defaqto star ratings to see where the product actually sits in the rankings and get quotes for the providers who have five star offerings;-

http://www.defaqto.com/star-ratings/

National estate agency chains try to do the same thing, but there the mortgage product comes from a small panel and you pay a fee. Worst of all worlds!

leereni

Ok kingstreet, but what's the point in going to a broker, them advising to make an application with halifax and paying a fee? Why not once the broker says to go with an application just go direct to the bank?

Yorkie1

Firstly, if you don't have squeaky clean credit, a broker will know where to place the applications - more importantly, will know where not to risk it.

Also, some products are available only through brokers.

But you pays your money and you takes your choice.

I was very grateful to have a broker 'holding my hand' during my first purchase. When I remortgage, I'll probably not feel the need to use him because I feel much more clued up on the available products and what's involved.