Should I use the Estate Agents mortgage broker?

evo21

BaileyMoselle wrote: »

I used a real estate agent's broker. Two years before I was refused a mortgage after going direct to the bank I had a current account with for 15 years. I really didn't think i had a chance this time round - I wasn't even on the electoral roll. Now I am in my flat with a mortgage from a high street lender.
Looking at it from a broker's point of view, whether independent or not - why would you waste hours of your own time in submitting an application if you were not confident of success and prepared to make sure the application was done properly and professionally? Time is money after-all.

Agreed - I think a broker is the way forward. It simplifies the process. I was more wondering as to whether EA mortgage brokers had limitations in any way, or were deemed to be less reliable, than independent brokers.

evo21

David_White wrote: »

I'm obviously biased but my view is that the estate agent's broker is on their side and only really interested in getting the house sold.... to anyone.

An independent broker is on your side and is only interested in getting YOU a mortgage.

Thank you for your response - do you know if in-house brokers have more limitations or anything? I'm concerned that she doesn't have access to the whole market. Our property failed the first valuation (by Santander) based on 'low marketability' because of it's location. I'm assuming this means we are knocked out by most high street lenders and as a result I'm concerned about her level of access to other lenders.

dunstonh

General rule of thumb is to avoid estate agent brokers. They have the worst reputation of the various distribution models. Frequently have been caught telling lies about insurance or lies about the need to use them (often the estate agent says that). Plus, most are tied to a single insurer (often L&G) and their pricing is higher than an independent or whole of market adviser.

EA brokers tend to be relatively short term in employment (often starting out before moving on) and suffer a high turnover in staff. Small local independent/whole of market firms have more stable staff who are usually long term. Plus, many are financially liable for the advice they give (unlike the EA Broker). So, are more likely to take greater care. Caveat being that there will be some good EA brokers and some bad independent/whole of market ones. However, generically, you would expect the whole of market/independent ones to be the better.

evo21

dunstonh wrote: »

General rule of thumb is to avoid estate agent brokers. They have the worst reputation of the various distribution models. Frequently have been caught telling lies about insurance or lies about the need to use them (often the estate agent says that). Plus, most are tied to a single insurer (often L&G) and their pricing is higher than an independent or whole of market adviser.

EA brokers tend to be relatively short term in employment (often starting out before moving on) and suffer a high turnover in staff. Small local independent/whole of market firms have more stable staff who are usually long term. Plus, many are financially liable for the advice they give (unlike the EA Broker). So, are more likely to take greater care. Caveat being that there will be some good EA brokers and some bad independent/whole of market ones. However, generically, you would expect the whole of market/independent ones to be the better.

Thank you. Bit gutted now that I didn't look into an independent broker in the first place. Truth be told, we are first time buyers and didn't even know mortgage brokers were a thing - so when the estate agents recommended one we were relieved to have help. New to this whole thing so I guess hiccups are expected. Hopefully this broker will do the job for now... But if it doesn't work out we now know for next time. Thanks again!

Casa1862

I wouldn't worry too much, I used one but try and find out what deals are available yourself, plenty of info around. I went in eyes open as I knew it would help me secure the property in a very competitive market by using them, not saying it's right but worked for me. I've used them again and I only paid low admin fees, however it's me telling them what I want.

oligopoly

Gascoigne Pees?!

That is amazing. But sorry - I couldn't take them seriously with a name like that!