Please help me, I am rather naive where this is concerned.

Tinkaf1

Ok.
1.A few weeks ago we viewed a place and liked it.
2. The agent mentioned us talking to their mortgage broker type person which was no charge obviously.
3. Hubby agreed and had a visit. Came away with a couple of costings on a sheet and after chatting said that basically Nationwide was offering a decent rate. Said that if we used the broker for a purchase it would cost us £250 ish.
4. This week we have had offer accepted on the place we liked. And I find out from hubby that he is booked back in to see this broker guy next friday to sort things out.

ok... WHY is this the way to go?
I might be being really silly here, but why not go straight to the Nationwide and ask them for the mortgage?

Does he get us a better rate? Does he make us more attractive to lenders in any way? Why are we paying him exactly? Is the £250 just an expensive thank you card for him spending 20 minutes looking on his computer? We havent really done this before and I am scratching my head as to why I should pay him, and what exactly it is for.
I understand he is with Countrywide or something.
Does anyone know the score?

DRP

Tinkaf1 wrote: »

Ok.
1.A few weeks ago we viewed a place and liked it.
2. The agent mentioned us talking to their mortgage broker type person which was no charge obviously.
3. Hubby agreed and had a visit. Came away with a couple of costings on a sheet and after chatting said that basically Nationwide was offering a decent rate. Said that if we used it it would cost us £250 ish.
4. This week we have had offer accepted on the place we liked. And I find out from hubby that he is booked back in to see this broker guy next friday to sort things out.

ok... WHY is this the way to go?
I might be being really silly here, but why not go straight to the Nationwide and ask them for the mortgage?

Does he get us a better rate? Does he make us more attractive to lenders in any way? Why are we paying him exactly? Is the £250 just an expensive thank you card for him spending 20 minutes looking on his computer? We havent really done this before and I am scratching my head as to why I should pay him, and what exactly it is for.
I understand he is with Countrywide or something.
Does anyone know the score?

Even knowing nothing about mortgages, it makes sense to do your own research.

The first step would be to look on the websites of some mortgage providers and speak to them on the phone to get quotes - then at least you can compare with what this broker tells/sells you.

monty-doggy

I bank with Barclays, and my broker got me a mortgage from them, so I thought the same thing.

However, I'm getting a better deal through my broker, and he has done ALL and I mean all of the paperwork, phone calls talking to call centres in Mongolia, faxing, form filling even sorting my survey and talking through the outcome wit me, and basically all I have done is tell him my Info, and sign on the dotted line. He has been a diamond.

For a FTB its good to have someone on your side, so that if something isn't right, they know what to do.

A good mortgage advisor/broker is worth their weight in gold

In my opinion!

Dan-Dan

Tinkaf1 wrote: »

Ok.
1.A few weeks ago we viewed a place and liked it.
2. The agent mentioned us talking to their mortgage broker type person which was no charge obviously.
3. Hubby agreed and had a visit. Came away with a couple of costings on a sheet and after chatting said that basically Nationwide was offering a decent rate. Said that if we used the broker for a purchase it would cost us £250 ish.
4. This week we have had offer accepted on the place we liked. And I find out from hubby that he is booked back in to see this broker guy next friday to sort things out.

ok... WHY is this the way to go?
I might be being really silly here, but why not go straight to the Nationwide and ask them for the mortgage?

Does he get us a better rate? Does he make us more attractive to lenders in any way? Why are we paying him exactly? Is the £250 just an expensive thank you card for him spending 20 minutes looking on his computer? We havent really done this before and I am scratching my head as to why I should pay him, and what exactly it is for.
I understand he is with Countrywide or something.
Does anyone know the score?

An estate agent broker will be on a kickback ,and also probably wont be whole of market

Better_Days

I suggest you do a forum search for Countrywide. IIRC they don't have a good reputation.

You need to find out a bit more about the 'broker'. Some who work with EA's only deal with certain lenders

Have a look on the main MSE page for the guide on mortgages. http://www.moneysavingexpert.com/mortgages/

Also is the £250 the fee the broker charges or is it the arrangement fee for the mortgage itself? At least do a search on some of the comparison sites so you get an idea of what is around
http://www.moneysavingexpert.com/mortgages/best-mortgages-cashback

AFK_Matrix

Bottom line is don't use the mortgage guy from the Estate agent but find a whole of market broker your self.

japmis

When I went to see a broker a few months ago, he said that he couldn't do any better than the nationwide offer, so I went directly thru Nationwide.

If you want a broker, you don't have to have a fee charging one, you can find brokers who get commission from the mortgage lender instead.

Locky

We use an independent mortgage broker who is whole of market. For a couple of hundred quid, he sorts out all the paperwork, makes all the phone calls and does all the chasing and we know we're getting a good deal. Personally for us, it's nice to have someone do all the hard work as we don't have the knowledge or time to put in all the effort and get such a good rate.

FireWyrm

Tinkaf1 wrote: »

Ok.

I might be being really silly here, but why not go straight to the Nationwide and ask them for the mortgage?

Why indeed.

Tinkaf1 wrote: »

Does he get us a better rate?

Nope...or probably not.

Tinkaf1 wrote: »

Does he make us more attractive to lenders in any way?

Other than bunging his 'man' at Nationwide a kickback...not really.

Tinkaf1 wrote: »

Why are we paying him exactly? Is the £250 just an expensive thank you card for him spending 20 minutes looking on his computer?

Pretty much. It's a common wheeze.

Tinkaf1 wrote: »

We havent really done this before and I am scratching my head as to why I should pay him, and what exactly it is for.

I feel the same about estate agents in general.

Tinkaf1 wrote: »

I understand he is with Countrywide or something.
Does anyone know the score?

Ah..yes. That explains it. Walk away from the broker and find your own.

As a general rule for the future, engage your OWN financial representation. No one who pitches up to you in the street and 'claims' to be able to help you is on the level. It just doesnt happen.

I suggest you ditch the naivete and quickly or they'll eat you alive in the coming weeks. There is plenty of information on this forum on the process and help/advice all over the internet if you ask.

sammyjammy

monty-doggy wrote: »

A good mortgage advisor/broker is worth their weight in gold

In my opinion!

Indeed they are but thats not necessarily the description of an Estate Agent affiliated broker!