differences between dealing direct with lender and a broker

lethal0r

thinking of getting a mortgage with nationwide sometime in the new year. if i want to make an offer on a house can i get them to put it to an estate agent for me?

are there any differences between using a broker or a lender? Not so much in terms of prices but more about what services I can expect from them.

tom

Doozergirl

The Nationwide will not put forward an offer for you!

A whole of market broker will find you the best deal from, erm, the whole of the market! The Nationwide cannot. You will more than likely save £000's over the years.

A broker, you can go and see, or they will come to see you. You can drink coffee eat croissants and have it all laid out to you. You can make an informed decision on which mortgage to choose and if you haven't bought before, or are nervous, a good broker will hold your hand. Ours was fabulous Not giving him any business personally right now, but he is recommended to all our friends and they all think he's great.

PasturesNew

Broker - the bloke who knows all the places to get the money from - and where's most likely to lend you the money. The bloke who will explain all the different sorts of mortgages too you and help you decide which is best for you/your situation/your short-term and long-term plan.

Lender - the one company that is to lend you the money.

A broker might only be able to offer you products from one company (e.g. if you go into a Bank or Building Society, expect to ONLY be offered their products). Avoid these sorts. You want a "whole of market broker" - one that is in contact with hundreds of lenders and can go to any company to get your loan for you.

So, find a broker, check he is "whole of market". Have a chat with him. He will then go through his hundreds of lenders and will come up with a few lenders that can offer you a loan that suits your needs. Then you pick a lender. Broker contacts the lender and when you get a "mortgage in principle" it means you've found a lender that will lend YOU the money .... next stage is to run down the estate agent's office and put in your offer on the house you want. When your offer is accepted, run back to the broker and tell them you've got a house. He will fill in the house address/price on the form and send it to the lender.

You then pay fees to the broker, who passes these onto the lender. The lender then sends out a surveyor to check out the house. This is not for you, they are looking it over to see if they think it is worth the money you are wanting to borrow from them. What is their risk.

lethal0r

will the broker put the offer in for me? in the house buying guide on this forum the mortgage advisor says he normally puts the offer in for clients. is mortgage advisor different from mortgage broker?

doesnt whole of market still exclude those lenders that dont use brokers? i thought that nationwide and one or two others only offer mortgages if you go directly through them. or is this not so?

olly300

lethal0r wrote: »

will the broker put the offer in for me? in the house buying guide on this forum the mortgage advisor says he normally puts the offer in for clients. is mortgage advisor different from mortgage broker?

Depends.

When I used a broker I didn't get a mortgage in principle I had a list of lenders who could lend me money depending how much I wanted to borrow.

The broker is useful if you don't get a mortgage in principle because you just give the EA their name and contact details.

If you are scared of putting in offers get someone you know who is good a haggling to do it for you.

doesnt whole of market still exclude those lenders that dont use brokers? i thought that nationwide and one or two others only offer mortgages if you go directly through them. or is this not so?

Broker's job is to find you the cheapest deal that suits you. Yes some companies may be excluded but they are not normally the cheapest deals as some mortgages can only be sourced through brokers.

The broker will also guide you over what survey you should have according to the age of the property , as while you need to have a valuation to satisfy the lender (which you pay for) ,if you are not buying a newly built property it is advisable to have a more indepth survey.

General_Mayhem

Go and see a broker:

I have arranged a Nationwide mortgage through a broker, that wasn't available direct from Nationwide!

You should be able to find a broker that won't charge you (they make their money from the lender), and it will give you peace of mind that you have got the best deal for you...

In addition the broker arranged the Survey, which was cheaper than Nationwide's, and allowed me to get a homebuyer report at the same time.

Doozergirl

I'm not sure if my broker does or would put an offer forward for me. I've never asked - always been happy to do my own, control freak that I am!

If you want a broker who will put the offer forward for you then why not ask Andrew Smith to be your broker as you know he will do it!