When to decide on a particular broker

Laurence_WMF

At what point in the mortgage-procuring procedure am I expected to settle on one broker, rather than being in dialogue with more than one (and also approaching lenders directly), and comparing what they offer?

Thanks very much indeed,
Laurence

ACG

As soon as you decide on which one you want to use?
I would say before you agree on a price for a property.

When choosing a broker, i would say dont go on price alone. Go with who you think will pull their finger out if it hits the fan.

Laurence_WMF

Thanks ACG.

So if a broker fixes up a deal for me, is it acceptable to tell another broker and ask if they can better it?

Thanks,
Laurence

ACG

It depends on your outlook...

You would be asking someone to do work knowing that your going to go elsewhere and ask someone else to do work - so one of those 2 are going to do work for nothing.

On the otherhand, your the customer you can ask as many people to do it as you like. All brokers should be getting you the best deal they can - whether that be rate/fees/service or a combination, so to go asking a few brokers is a waste of your time and theirs - providing you have a whole of market broker and/or independent you wont go too far wrong when looking for deals.

Dave_Ham

If you have a very straightforward case, then you do not need a broker.

If you have a non-straightforward case, then would you go with the broker who tells you the best rate available (whether or not applicable) or the broker that tells you based upon experience the most suitable and best priced product for your situation?

Also, I imagine it depends upon how you shortlisted the brokers you have contacted. I would expect the results to be similar if not the same.

It also depends upon at how much you value your own time.

Good luck

Laurence_WMF

@ACG,

Thanks again. So this is not rare, but frowned upon by many brokers?

@Dave Ham

Thanks.

My situation is not very straightforward (without going into details; I'm not actually asking for advice about the best mortgage for me here).

I have so far had initial interviews with two local brokers ('independent', 'whole market'), both of whom have good reputations and both of whom seemed thoroughly trustworthy and on-the-ball to me. Only big difference is that one charges a fee of £300, the other doesn't charge a fee. Not sure how to choose between them.

I'm inclined to think that such an important deal is worth a little shopping around, but I don't wish to do anything considered unethical.

Thanks a lot,
Laurence

Dave_Ham

Personally for an unusual situation and depending upon mortgage size, these are both pretty cheap (well one is free)

Whilst we all want to save money where we can, sometimes it is false economy to take on the cheapest.

I personally would have no problem quoting for someone that is shopping around, although you have to have an even playing field and no point in showing you(your friend) what you could have won..

A bad broker can cost you more than you save in the long run.

Good luck

amnblog

Never - work two brokers on a case at once.

That way lies problems as it leads to confusion.

ALWAYS USE A BROKER AND GET YOUR MORTGAGE PRODUCT AND LENDER RECOMMENDED BY SOMEONE WHO KNOWS WHAT THEY ARE DOING.

Let_Us_See

amnblog wrote: »

ALWAYS USE A BROKER AND GET YOUR MORTGAGE PRODUCT AND LENDER RECOMMENDED BY SOMEONE WHO KNOWS WHAT THEY ARE DOING.

But for the majority of people seeking advice that is the conundrum! Unless a personal referral, how can you ensure the broker "knows what they are doing" until its too late?

ACG

I wouldnt say its common to try 2 different brokers and to be honest if someone told me they were doing that it would probably get my back up a bit. If im spending an hour or 2 of my time to see you and do some research then i dont expect to be competing against someone else... i expect that you would have decided on me by that point.

Pick a broker and stick to them would be my suggestion.

Going back to your next question, i have never come across a good experienced broker who doesnt charge a fee. I have seen fees from £295 right through to 1% of the mortgage amount (typically in excess of £1000).

I wouldnt say there was much between them, but in my opinion you do get what you pay for and if you have someone not charging a fee - how many files does he have on his desk? Does he have the time to dedicate if it all hits the fan?

£300 is still very cheap especially for something less than straight forward.

Laurence_WMF

ACG wrote: »

When choosing a broker, I would say dont go on price alone. Go with who you think will pull their finger out if it hits the fan.

I'm not quite sure what might hit the fan; please tell me. It sounds like any competent, honest independent broker would find one of the best deals available (hence no need to do too much shopping around and comparing; no?). If the deal is appropriate for your particular circumstance, and you read the small print, then what might go wrong and what might a good broker do that a less good broker wouldn't? Would the broker help if you had a quibble with the lender some years down the line?

Thanks again,
Laurence