Go direct or use a broker?

Mrskaren

Hi guys,

been reading lots of scary reports about the mortgage market changing since MMR, mainly about how long it takes to get a mortgage appointment / complete the process directly with a lender.

Has anyone got any experience with getting appointments post MRR directly with the high street lenders, what sort of time scales are there?

Or do I look for a broker? what would be the advantages / disadvantages of doing this?

I look forward to your varied responses!! :mad:

lentrix92

Brokers have access to lots more than you can, however saying that I have just used a broker (London & County) and they couldn't find a cheaper deal than what i found (so far) !

Have a look at Martin's mortgage guide on the main site - that may help

kingstreet

If you're vanilla, sub 60% and have no "sticky-outy" bits, go direct and you'll get a marginally better rate from one of the non-broker lenders.

You will have to field the daft questions and documentation requirements and if you can cope with that, you're set.

Anything out of the ordinary, want someone to manage the process, be available when everyone else is closed and even have home visits - use a broker.

amnblog

Going direct is like going into the 'pound shop'.

It looks like a result until you get it home.

lentrix92

amnblog wrote: »

Going direct is like going into the 'pound shop'.

It looks like a result until you get it home.

Why - can you explain ?

ChaddyBouy

Go to a broker however I'd suggest going through a family or friend recommendation. Our first broker was found online with 20+ years experience so felt like a safer bet - they weren't. Just because they've been doing it for a while doesn't necessarily mean they're good.

We were after 95% LTV and my partner didn't have any credit, having a good broker ensured we got the mortgage on the house we loved.

amnblog

lentrix92 wrote: »

Why - can you explain ?

Cheap is as cheap does.

It's a big decision and not one to be made without advice from a knowledgable and impartial source.

sebtomato

lentrix92 wrote: »

Why - can you explain ?

Well, he is a mortgage adviser and therefore has to defend his job, despite being a lot less relevant nowadays, apart from a few difficult cases.

When I was looking for a mortgage 3 years ago, none of the so-called mortgage advisers could actually beat what I found myself.

The comparison with a pound shop is quite poor: beside the rate and fees, are some mortgages better quality than others???

tigsly

I think I fit the above description ..
BUT

If you have no debts, a steady job and are looking for a low LTV...then going direct is straight forward..

I dont see how a broker can get you a better deal (other than knowing the whole market .. btu research will get you a fair way)...

I applied pre the changes - but went though HSBC - who were viewed as hard to get a mortgage with .. they asked me lots of questions - related to what i spent money on - i was honest!

amnblog

The broker gives you the correct advice when you apply for your mortgage.

If you want to borrow 5 of 6 figures on the back of no experience of the market that is straightforward enough until it goes wrong.

Goldiegirl

I think that if you are confident about mortgage matters, have an excellent track record for payments across all previous mortgages, card cards, loans, and other commitments, and you are not afraid to do the research yourself - go direct.

If not, use a broker.