Mortgage Brokers

zak2012

Hi All
I am a first time buyer and found a property.
the mortgage broker is charging 500 + 100 admin fees to set me up with a mortgage provider.Can i avoid paying this by going to a bank on my own? what is the experience that members have of these brokers and is it worthwhile to use them?
Thanks

ACG

Where is your application up to with the broker?
What does their fee agreement say? And have you signed it?

There is nothing to stop you going direct and applying yourself. But if the broker has already started the process you may find you have to pay regardless or at least some sort of fee.

dunstonh

Can i avoid paying this by going to a bank on my own?

You can. Although the bank may be more expensive.

what is the experience that members have of these brokers and is it worthwhile to use them?

Most mortgages in the UK are arranged by brokers. It can be worthwhile for some but not for others. It really depends.
here is a thread a few down from this one that gives an example: https://forums.moneysavingexpert.com/discussion/5765051

YHM

Intrigued as to the state of your application and the reason why you wouldn't use the service of a professional....

stueyhants

I’ve always assumed that if your finances are pretty good and straight forward, no past history of problems and well within affordability then just using Best Buy tables from a number of comparisons sites and direct to banks websites it’s cheaper to go direct and not pay a broker fee.

ACG

Have a read of this https://forums.moneysavingexpert.com/discussion/5765270

Even the most straight forward of applications can become a nightmare. Its a piece of cake to find the best rate, if you are seeing a broker as a price comparison service then yes our value is nil. A brokers job is to find the best lender, that is not always the cheapest.

9 times out of 10 if I tell someone the cheapest is £x a month or the next cheapest is £x +£5 a month but the application will sail through, they would rather pay the extra fiver a month.

Finding the rates is the easy bit.
Checking criteria is relatively easy.
Knowing you will pass the credit check is impossible for the average person, even brokers get it wrong occasionally.
Knowing who will be easy to deal with for your circumstances is impossible if you are not doing it on a daily basis.
Being a first time buyer, many people want that reassurance that comes from someone who does it all the time and also guidance and timescales on next steps.

It makes no odds to me if you use a broker or not, I am not here to convince you a broker is the best way 100% of the time. But we are not a price comparison service.

stueyhants

I’m sure a broker service is essential in a lot of cases and well worth the investment. I was just testing my assumption that for simple cases it’s cheaper to go direct. I’m looking at remortgaging, I’m already with HSBC, HSBC seem to offer the best 5 year fixed at the moment so it seems like a no brainier just to go direct. I’d be more than happy to use a broker if it would be cheaper and/ or easier.

Dolly123

There is plenty of Mortgage Broker Companies that don't charge a fee, PM for the one I am using they are absolutely fantastic and deal with you over the phone and email so you can be located anywhere

goodwithsaving

Being a FTB you probably don't appreciate just quite how stressful the next few months are going to be for you. It is good to have a broker you can call when you're feeling stressed and need reassurance. Being a FTB, it is also crucial that you have the guidance of a professional for your first time.
Use a broker, they're worth every penny. My last two mortgages have been simple and I could have done them myself.........but I'd rather somebody else dealt with the lender and I just had to concentrate on solicitors.

I'm all for money saving, but cheaper when it comes to something as important as a mortgage, isn't always better.

ACG

Dolly123 wrote: »

There is plenty of Mortgage Broker Companies that don't charge a fee, PM for the one I am using they are absolutely fantastic and deal with you over the phone and email so you can be located anywhere

Interesting.

I do not understand how they can be so fantastic if you know who you are applying to so far in advance of your application going in (going off your thread about natwest). What happens if rates/deals/affordabilty calculations/Criteria changes?

Despite knowing who you are applying to, they have not told you what document you will need to provide...I have answered your thread on what they will request btw At least one broker can help you be prepared.

Dolly123

Im just avoiding messaging him as they are closed for xmas so you lot are getting my random questions instead lol