What are the benefits of using a broker vs getting the mortgage direct with bank

CarlaAEl

Hello,

I am a first time buyer so securing a mortgage for the first time.

I am speaking to a broker who will get me the same rates as going direct with the bank. He also said covering costs of valuation (how much do banks usually charge for this)

In addition he quoted that there may be conveyancing fees to be paid to the lender. However, my solicitor said they will act on behalf of the lender already in my rates. So am I already covered?

What should I be considering when choosing to use the broker or not?

Thanks,
Carla

nik_k

NatWest charged £277 for our valuation, plus £75 admin fee.

Brokers can be 'whole of market' so look at all lenders, rather than just a specific one. This means that you can often get a better deal by going with a broker.

[Deleted User]

CarlaAEl wrote: »

Hello,

I am a first time buyer so securing a mortgage for the first time.

I am speaking to a broker who will get me the same rates as going direct with the bank. He also said covering costs of valuation (how much do banks usually charge for this)

In addition he quoted that there may be conveyancing fees to be paid to the lender. However, my solicitor said they will act on behalf of the lender already in my rates. So am I already covered?

What should I be considering when choosing to use the broker or not?

Thanks,
Carla

Do you have a full time job where it will be a hassle taking time out all the time
Do you want to sit on hold to a lender to find out whats going on or just get an email from the broker who should be up to date with everything
Do you want someone to get you a mortgage offer or do you want someone to help you through the whole thing?

The deals we get are 90% of the time the same as going direct but brokers come in to their own with the service they offer over an above a 'adviser' in a bank.

You will also get some really good advice on how to protect you and your family, something a lot of people overlook but is really important. Most banks are tied to single companies but *most* brokers have a panel of insurers who can et you the best cover for the best price

I'll give you an example of service, I processed a remortgage for a client a few months back, deal doesnt finish until end of next month. I call them a few weeks ago 'hi, remember how we put you with Barcalys, well HSBC have just launched a cracking rate, you ok if i switch you over? there is still plenty of time to get it sorted'
You think a bank adviser would do that? No chance. Their job is done as soon as they give you the offer. Most of the time if you have any quesitons post offer you deal with the call centre, not even the person who gave you the mortgage in the first place.

If you cant justify spending money for the same deal, ask the broker if he wants the business for no fee to save you going direct. Depending on case size it might be worthwhile for the broker and you get to support a person building their business rather than the bank.

And then youve got a relationship so when your deal comes up for renewal, someone will search the market again for you to find you the best deal.


Your other questions. Conveyancing costs are paid via your solicitor, some lenders charge more so if your solicitor gets the offer it might change the cost slightly. Also some obscure lenders dont let some solicitors work with them so you need a 2nd solicitor (unlikely if you are at a mainstream lender although I got tripped up with a Post Office one recently where we had to change the mortgage company or the solicitor)
Survey upgrade costs would be the same if you are going direct or through a broker. Some lenders do free valuations through brokers but not direct.


Honestly, its a minefield and I think good quality advice is worth having. What difference does it make seeing a broker or seeing a bank to you? You are still seeing one person to get you a mortgage but you just might get a better service through the broker.

[Deleted User]

nik_k wrote: »

NatWest charged £277 for our valuation, plus £75 admin fee.

Brokers can be 'whole of market' so look at all lenders, rather than just a specific one. This means that you can often get a better deal by going with a broker.

Was this recently? As Natwest were the lender I was thinking off with the free vals through broker deals. They are the one high street lender that always offers cheaper broker deals than direct. Not sure why. Most dont dual price

nik_k

Deleted_User wrote: »

Was this recently? As Natwest were the lender I was thinking off with the free vals through broker deals. They are the one high street lender that always offers cheaper broker deals than direct. Not sure why. Most dont dual price

Yes, this was last week actually!

[Deleted User]

nik_k wrote: »

Yes, this was last week actually!

Do you get cashback on completion to effectively refund you?

nik_k

Deleted_User wrote: »

Do you get cashback on completion to effectively refund you?

Yes and no...the cashback will be £250, which will go some way to 'refunding' us, but not all the way

[Deleted User]

nik_k wrote: »

Yes and no...the cashback will be £250, which will go some way to 'refunding' us, but not all the way

Thats the difference then. They got rid of upfront vals on broker exclusives but dont do the £250 cashback at the backend. Still do cashback on some deals with the free val but not as a general rule. And its a small interest rate difference. Still strange that they dont do the better deals for people who go to them direct.

ACG

CarlaAEl wrote: »

Hello,

I am a first time buyer so securing a mortgage for the first time.

I am speaking to a broker who will get me the same rates as going direct with the bank. He also said covering costs of valuation (how much do banks usually charge for this)

In addition he quoted that there may be conveyancing fees to be paid to the lender. However, my solicitor said they will act on behalf of the lender already in my rates. So am I already covered?

What should I be considering when choosing to use the broker or not?

Thanks,
Carla

Your questions answers why you may be wise to look at a broker.

The illustration shows a fee for conveyancing, this is because your solicitor does work for the lender and they charge you for that work, but it is built in to the price the solicitor gives you... lender wont tell you that, so you then end up having to call a call centre to get an answer or ask a load of randoms on an internet forum.

My customers call me/Dawn/Georgie on our mobiles or emails us and get an answer.

We had a mortgage offer issued for a customer 2 weeks ago, it was wrong. I picked up on it being wrong and queried it with the lender. The lender told me it was right and just badly worded. Turns out after the solicitor questioned it, it was wrong and a new offer was issued - incorrectly again. I picked up the offer and then picked up the phone and got it sorted and then I called the customer to explain what is happening and then again to tell her it had been sorted.

How many calls did the customer make? None (as far as I am aware). We picked it up and sorted it all out. No stress for her (hopefully) as I gave reassurance we were on it.

In fairness I think that is maybe the second time in 6-7 years, so not exactly often but things do go wrong and you will have questions. Do you want someone on hand or do you want the internet/call centres?

Forget the price differences, for the average mortgage you are talking a fiver a month at most. The biggest cost will be the brokers fee (assuming they charge), but you need to weigh up what you get for that and it is not a price comparison service, why would you pay for that? Nobody can answer that question for you, you will either see the value in it or you wont.

Lungboy

Just to add to the above, some mortgages are only available via a broker, such as Platform, so you can't go direct for them.

Mortgage_Expert

I'd like to add that with a broker you do just one fact find to access a myriad of different lenders. If you go it alone you have to do multiple fact finds if approaching each lender direct. A broker saves you a lot of time, effort, and pain!