Mortgage Broker or Bank

Labmoore

Thank you all for your advice! It is hugely appreciated. Sorry it has taken me so long to respond I had trouble logging in.

We have decided to use a broker again as having read the above we think they will know a lot better the right sort of lender to go to. We have found a broker we are more comfortable with who has looked at both our credit reports and is reasonably confident he can help but not 100% due to our history. We will be booking in to see him in a couple of weeks to get a mortgage in principle and will update you then if it all goes well or not!!

Thanks!!

dobymicks

Daniel86 wrote: »

A lot of reasons to use brokers here, can someone tell me the reasons NOT to use a broker? If you don't mind me asking. I'll be looking for my first mortgage soon, so curious.

I used a broker for 4 x buy to let mortgages, the same broker could not get me a 19% LTV interest only mortgage on my unencumbered home so I have had to find one myself. TSB, they were very good with a small fee of £199 and 2 years fixed @1.99% but the valuation fees are quite high. £520

I do have time on my hands though but I am encouraged to do the buy to let mortgages when the fixed rate ends. The broker charges £200 per mortgage. (£400 BOGOF) Three of my btl's are with Birmingham Midshires and they have stopped dealing direct. I have seen some online brokers that say no fees.

ACG

Sounds like the broker is not really interested in residential mortgages or is relatively new? I did a 60% LTV Interest only mortgage a month or 2 ago at 1.85% with a £199 fee and a free valuation.

I charged the clients £500 but it would have still been cheaper. As someone else has said on a previous post, avoiding broker fees can be a false economy.

NOVAMET21

Sorry to gate crash. I'm new to the forum as you can tell I have only replied 3 times.


I'm seeing lots of 'I am a Mortgage Adviser'. It is great to have you guys in the forum so you can give great advice to the people but I was just wondering do you get paid to reply in this forum as you could be earning your high wages in your job with all these times?

ACG

No, we do not get paid. I dont anyway.

Its nice to be nice, I can help people and I also learn from others on here and the other brokers so its win win from a knowledge perspective. I only come on if I need a break from the real world of mortgage advice.

It is not a completely selfless act though, I do occasionally pick up the odd mortgage, but that is not why I come on here.

amnblog

We don't get paid by MSE.

We cannot advertise or contact anyone unsolicited on here.

We do sometimes get approach to help someone.

Brokers post on here for various reasons.

I have two main reasons I suppose

1. It is good for business as it helps me to understand what people are have problems with and how we can improve our service.

2. It is satisfying to be able to help someone by pointing them in the right direction, or putting their mind at rest with a few simple words

Sometimes you will see a Mortgage Broker who is simply here to find clients. They are easy to spot as their method tends to be crass and transparent.

kingstreet

I go out of my way to stop people contacting me on here and still they send PMs asking questions or for representation.

I only come here to keep in touch with the "real world" as newbuild gets very monotonous if you don't.

cahillg81

dunstonh wrote: »

Most mortgages in the UK are done by brokers.

There are a small number of lenders that dont retail via brokers (HSBC group being the main one). So, if you want HSBC, then you wouldnt use a broker.

People tend to use brokers as it saves them time researching and no need to go to a branch for an interview. However, if you dont mind doing that yourself and you think you can do a good job of it and you know your case is straightforward then you can DIY.

Not true HSBC do allow for intemediaries but they have been selective. They first of all went live with Countrywide and London and Country, I understand it never worked too well due to teething problems but things have apparently picked up.

They have since taken on a few different Networks and this was announced last week.

I completed my application with them yesterday and to be honest despite the fantastic rates having had a meeting with their Regional Sales manager I don't think I will place much business with them from the client bank I have.

However if I find a beter stream of clients who are squeaky clean earning more than £100k per year who are looking for a relatively low LTV I think they will be a great lender in the intermediary market :-)

cahillg81

Oh and to OP definitely use a broker. There are some poor ones but there are some very good ones.

NOVAMET21

Do you any of you guys charge a fee? I thought it was common to have a no fee nowadays.


Also heard in the news that the commission you make are somewhat the same regardless of the lender. This makes broker who are trying to earn more from the borrower could be stopped. Is this true?


I need to re-mortgage my house next year. The current lender is in the top 5 in terms of market share for lending the mortgage. I'm thinking of re-mortgaging with them as their rates are competitive enough. Also, they have no application fees or don't charge for valuation and solicitors fees.