Mortgage Broker advice

flashsnaps

On advice from this site I went through a mortgage broker to find me a mortgage on a 2bedroom flat.

They came back with a couple of deals based on my 10% deposit, one was with one bank, which I went on the banks website and the same deal/interest rate was on there.

Now my brokers estimate includes all the bank mortgage fees, as well as there own of almost £600!

Am I missing something here? Why should I go through the broker when I can avoid their £600 cost and go straight to the bank?

GMS

The broker will do all the legwork for you. Deal with enquiries from all parties including estate agents and solicitors.

They will liaise with the lender, submit the application, answer queries, send documents and ultimately argue your case as and when necessary.

Clients don't realise what we do to earn our fee. We speak to you, do the fact find, do the research, provide illustrations and give advice as to why we select a product.

We then submit the application and you get your offer. Well that's what you think. As a client you will never know the amount of time we spend on the phone, on hold, arguing, referring to managers/BDM's, sending additional info and generally representing our client, the most important person.

You can do it yourself of course. You will see many posts about MMR and lender intrusion. You will also read of 3 week waits for an appointment and 3 hours in branch being grilled.

If you don't agree with the broker fee the negotiate. Ultimately it is an agreement with the client. Nobody can work for free and it is a balance of what you think you want to deal with and what your time is worth.

amnblog

Also GMS. Borrowers need to lose this idea that getting a mortgage is like buying beans at a supermarket.

Every day we get a call from someone who tried to go direct to the bank and has stalled of been refused.

The borrower must present their position to the lender in the right way to obtain the funding. The best way of doing this (particularly now post MMR) is via a broker.

Leon_W

When you call a broker they'll usually take your call, help smooth things as much as possible as they don't get paid unless you complete the deal.


You'll phone the bank, get passed from pillar to post, and be promised a call back that never happens. They get paid anyway and couldn't care less.


Generalisations, maybe, but it can make the difference between you getting the house you want or not.

Let_Us_See

So you instructed the broker to work on your behalf and they source a suitable mortgage and now you are considering not paying their fee? I don't think any further comment is required.

Daxx

Just from a customer perspective...our Mortgage advisor has been brilliant and invaluable.

We received our MIP within days of our application but due to low valuations, new MMR rules and an increase in rates our mortgage offer has taken another 4 weeks. Without our mortgage advisor to chase up the halifax, speak to the solicitor for us, advise us of the process and also argue our case for the original rates we would have been much worse off.

Definitely made the whole process a lot easier for us.

amnblog

Both you and your broker have been smart Daxx