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

kingstreet

Deleted_User wrote: »

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.

NatWest HTB products are still charging a valuation fee and don't have cashbacks.

Jane.1963

We used a MA as we knew we would be looking at an adverse lender but in all honesty if we wasn’t in the same position I would still use one.
I just gave him everything he asked for and he done the rest, still stressful waiting on decision but we got our offer, worth every penny in my opinion.

SouthLondonUser

If you are a prime customer with a straightforward situation, a good broker is unlikely to save you money but will save you time.

My example: a few years ago I wanted to remortgage with HSBC. The bank insisted my partner and I visit a branch, in person, at the same time, Monday to Friday, for identification. Since we work very far from each other, that would have been complicated. A good broker got us the very same deal without us having to take time off work to visit any branch in person.

spaceboy

It annoys me that it isn't easier to compare mortgages yourself. There's a mortgage comparison thing on this website but it's far from perfect. The facts you really want are monthly repayment amount and how much will still be on the mortgage when the fixed term is up. But it doesn't tell you the latter.

amnblog

spaceboy wrote: »

It annoys me that it isn't easier to compare mortgages yourself. There's a mortgage comparison thing on this website but it's far from perfect. The facts you really want are monthly repayment amount and how much will still be on the mortgage when the fixed term is up. But it doesn't tell you the latter.

If you have a Broker run two illustrations for you they will outline the monthly repayment amount and how much will still be on the mortgage when the fixed term is up.

Of course, you may get a more accurate calculation by working with how much interest you pay until the fixed term is up.

Don’t forget, if the end date on the fixed terms for each product varies, you have a further complication.

SouthLondonUser

spaceboy wrote: »

It annoys me that it isn't easier to compare mortgages yourself. There's a mortgage comparison thing on this website but it's far from perfect. The facts you really want are monthly repayment amount and how much will still be on the mortgage when the fixed term is up. But it doesn't tell you the latter.

Open a spreadsheet. Any spreadsheet - even google sheets - and use:


CUMPRINC() to calculate the principal repaid in a given period
CUMIPMT() to calculate the interest repaid in a given period.


You might also want to look at the PMT() and PPMT() formulae.


For example, if you have a mortgage at 2% interest rate over 25 years, fixed for 2 years, on £100,000, after 2 years you will have paid:


=-CUMPRINC(2%/12,25*12,100000,1,24,0) = 6,292 of principal


=-CUMIPMT(2%/12,25*12,100000,1,24,0) = 3,880 of interest


Note: you need the minus because the software considers the payments as outflows, so negative.
The mortgage has monthly repayments, so you divide 2% by 12, and the periods are 25 * 12


The principal outstanding after 2 years will be the initial amount less the result of the -CUMPRINC() formula above



Also note that the principal repaid is NOT a cost as it is money you are repaying to yourself. To compare the true cost of different mortgages, you need to compare the interest paid + upfront fees, legal costs etc.

zesh90x

The one thing I will add here is that all brokers offer a different level of service!

Don't make the mistake I did and rush into selecting one, make sure you consider all options when picking your broker, I had a terrible broker on my 1st attempt at getting a mortgage sorted, changed my broker and it turned everything around!

P. S my broker is also on this forum and he's awesome!

gj373

I'm not a broker.

When I was buying a house I used a broker. So much easier than going direct. No forms to fill in, no lengthy interviews with banks. A friendly chat and coffee with broker, they took a copy of my paperwork and that was that. After offering on a house let the broker know and then go in and sign the paperwork when they ask you to. Stress free and some of the best money I spent.

newsgroup_monkey

I agree with what the Brokers have said.
I used an online broker (and my experience hasn't been any different, except things are done electronically which suits me as I work in an open-plan office)


They did all the tough work for me and kept me informed every step of the way. Recommended a mortgage which I was likely to get (rather than one which I would have been turned down for). They gave me a long list of different mortgages that suited my request (some of which I couldn't actually find myself or the rates were higher direct). They helped me fill the forms out properly and pointed out where I wasn't putting my proper salary down (I'd been calculating my gross pay wrong and shorting myself).

I'd also heavily recommend Movelink to help with your conveyancing for similar reasons. Although they take a cut, I've probably saved around £400 with the solicitors I was originally going to use.
It turned out that the solicitors weren't on the panel for my lender (even though they said they were) and movelink helped me change solicitors at absolutely no charge.
In addition, because they do the searches themselves, they applied for them the day I instructed them. They also chase my solicitors on my behalf. They're like brokers for conveyancing.

spaceboy

Can anyone tell me how the cashback thing works?