Do I need my broker?

Zola.

I am coming to the end of a 5 year fix - this was arranged by a broker, as we were first time buyers...We have overpaid consistently and have knocked the loan down and value is up.... I just had a look on this page to see some attractive deals:

https://www.moneysavingexpert.com/mortgages/best-buys

I know to apply for these would be a bit of a process.... but if I simply rang my current mortgage provider and quoted some of the competition, would they negotiate a new rate for me directly, meaning no new paperwork and no middleman? Not sure if thats how it works...

Also I am aware my broker may not be too happy if I did that...

kingstreet

Customer retention products from your existing lender work on loan to value, term of fixed rate, product fee etc. You pick from what's offered, there is no ability to horse trade.

If you want an overview of the market which takes in customer retention products and other lenders' remortgage products your broker remains a best first port of call.

[Deleted User]

You can not negotiate with your lender. The rates they offer will be the rates available

Seeing a broker may not be just to get a rate you can get yourself. Maybe they can talk through expected changes in circumstances, or thoughts on future rates, or reducing your term etc etc. Maybe just to give you some advice.

Retired_Mortgage_Adviser

1. If you are less than 3 months away from the end of your fix, your broker should have already contacted you by now (at least all the brokers I know would have!).

2. Your existing lender will not move on their published rates available for product switches. There's no negotiation on it unfortunately.

3.If you do get in touch with a broker, they will look both at the whole market (the products you see on the MSE comparison) and existing deals with your current lender.

If your existing lender comes up trumps on a total cost basis (they often do for mainstream lenders since there are zero other costs involved, unlike with a remo), the broker can switch you through for most lenders. There is no affordability or credit checks but they might need basic documentation for their compliance processes.

Zola. wrote: »

I am coming to the end of a 5 year fix - this was arranged by a broker, as we were first time buyers...We have overpaid consistently and have knocked the loan down and value is up.... I just had a look on this page to see some attractive deals:

https://www.moneysavingexpert.com/mortgages/best-buys

I know to apply for these would be a bit of a process.... but if I simply rang my current mortgage provider and quoted some of the competition, would they negotiate a new rate for me directly, meaning no new paperwork and no middleman? Not sure if thats how it works...

Also I am aware my broker may not be too happy if I did that...

Zola.

Ok thanks, still have 4 months to go... I am just looking to see if I can avoid paying unnecessary setup fees if I don't have to. I like my broker so will no doubt go back to him.

I am in an uncertain period... where I know in 3-5 years I will want to move to a larger property / forever home, but I want to build up the equity further and hopefully grow my investments too so that I can put down a big deposit and start the process again...

[Deleted User]

Also, your broker may still be able to keep you with your existing lender and stay fee free whilst getting the lender to pay the broker. If you like the broker it will stick some money in his pocket with no difference to yourself

ACG

There is not enough information to say whether or not you need a broker.
However, using a broker may help you narrow down your choice of products. You say you may move, so do you go with a product which has no ERCs after say 3 years or do you choose a product that is portable (but no guarantee they will accept you in 3 years time?)

A broker can go through the options with you and help you narrow down the best way forward. It is really not all about the rate/fees.

Your broker wont be bothered if you go to them or not, I dont mean that in a rude way I just mean that a few of our customers go direct after we have done the initial mortgage and I am happy for them. I am happy we got them on track in the first place and they now feel confident enough to do it themselves. But confidence to do it does not mean you can or even that you are making the right decision.

Personally, from the questions you are asking, I think it would be beneficial to have someone there to take all of your thoughts and concerns down and then discuss with you the best way forward. A lot of our job is hand holding and guidance (rather than searching for the cheapest deal which you do not need a broker for), it sounds like it might a good thing for you.

Just to also add to the others, you cant negotiate with your current lender. They have products and it is a case of take it or leave it.

SonOf

meaning no new paperwork and no middleman?

Brokers would check the retention deals as well as the rest of the market. If you dont use a broker, the lender just keeps the money they would have paid the broker for themselves. So, you are not gaining anything by cutting out the middleman.