Should a Mortgage Broker / Advisor present you multiple lenders and products?

aidan_ainsley

So the background here is that we are trying to buy a new build house. The developer said we must get approved by their broker (New Homes Mortgage Helpline - NHMH) before we can formally reserve. So we did that and proceeded with them to find a lender for us. They found us Halifax at 1.66% rate on a 5 year. We've done our own research and seen 1.51 elsewhere when we've entered our details online. This was with Halifax and also Yorkshire Building Society. When we told the broker this over the phone they said that those options are not eligible with Help To Buy users... (is this true as we havent seen this stated anywhere)?

Also, they only presented Halifax to us... Should they have given us several offers and we pick? They are meant to have access to the whole of market but for all we know they may have gone straight to Halifax as they will give NHMH the most lucrative kickback fee. 

haras_n0sirrah

Halifax have special shared ownership and shared equity products. Halifax definately don't provide the most lucrative kick back - they are on the tier with the lowest. 
Brokers are meant to present the best solution for your circumstances but should explain why. 

csgohan4

it's not just about the rate, also the fees and costs for solicitors/ valuation e.t.c  have you compared them side by side?

[Deleted User]

I present the one I think is best and then explain why i havent gone to other lenders that may have been cheaper.  I also sent a suitability report that includes a table showing the deals available from the top down, the suitability report states why I chose a certain lender

Them selecting a few and asking you to pick wouldnt be an advised service. It would be informed choice which is not allowed anymore for spoken transactions.  

Have they sent you a suitability report? 

Also, Halifax are one of the lowest commission payers around so they wouldnt be going to them for that reason.  Just ask why Halifax was chosen and you will get a simple answer. 
To be fair though, they should also be making it clear what lenders they do business with. I give clients a page with all 70+ lenders on it and explain that I cant get certain deals. I also offer a sheet showing the different commission rates we get paid by each lender.    

Doesnt sound like your broker was very good at explaining things. For instance, Yorskhire Building Society cant be used by brokers, but their broker only lender Accord can.   

ACG

Why would they give you multiple options? Part of a brokers job is to narrow down the options and advise on the best. 

There are times we put multiple options on the table - for example if the customer is not sure whether they want a 2 year deal or a 5 year deal or if there are 2 deals similarly priced but one is more expensive each month with cashback or less each month but no cashback or an easy lender which is more expensive over a more difficult but cheaper lender. 

But it is not a given we would provide multiple deals, it depends on the customer and the options. 

Also, you have found products that would never go through to offer, you appear to be questioning the broker, but they have already saved you from making a mistake and that is before an application goes in. 

dunstonh

Should a Mortgage Broker / Advisor present you multiple lenders and products?

direct answer to that question is NO.    They should present the best option.  However, if cheaper options exist, which may not be the best options, they have to state what those cheaper options are and why they have been eliminated.

Also, they only presented Halifax to us... Should they have given us several offers and we pick?

Why would you be given the option to pick?   You are not in a position to know the quirks and issues that may exist.   That is why you employ someone to do it for you.

They are meant to have access to the whole of market but for all we know they may have gone straight to Halifax as they will give NHMH the most lucrative kickback fee. 

And for all you know they have gone for the best option.   Your paranoia is not their problem. However, if you have doubts, then the mortgage broker would be more than happy to explain themselves.  The filters that they used and the list that returned the lenders is part of the file they hold on you.   Indeed, many brokers will do the research right in front of you so you can see what comes up on the screen.    There is nothing to hide.

AnotherJoe

aidan_ainsley said:

So the background here is that we are trying to buy a new build house. The developer said we must get approved by their broker (New Homes Mortgage Helpline - NHMH)..... for all we know they may have gone straight to Halifax as they will give NHMH the most lucrative kickback fee. 

You should  be more paranoid about the developer and all the stuff that goes with new homes these days, pseudo-leases, management companies that raise fees without ability to get out, snagging lists that nearly involve a rebuild, garages too small to park in and drives you cant drive on.

amnblog

What would be value of presenting to you the recommended lender and product, and also other products that are not as suitable? To give you the chance to ‘pick’ the wrong option?

aidan_ainsley

amnblog said:

What would be value of presenting to you the recommended lender and product, and also other products that are not as suitable? To give you the chance to ‘pick’ the wrong option?

Because when it's my money being spent I prefer to consider all the options myself rather than rely on someone else to do the thinking for me. It's me taking the risk after all. Yes they are 'experts' but that doesn't guarantee that they won't suggest a product that is more lucrative for themselves... it seems openess and transparency isn't the default setting here

[Deleted User]

aidan_ainsley said:

amnblog said:

What would be value of presenting to you the recommended lender and product, and also other products that are not as suitable? To give you the chance to ‘pick’ the wrong option?

Because when it's my money being spent I prefer to consider all the options myself rather than rely on someone else to do the thinking for me. It's me taking the risk after all. Yes they are 'experts' but that doesn't guarantee that they won't suggest a product that is more lucrative for themselves... it seems openess and transparency isn't the default setting here

Why are you engaging a mortgage broker at all then?  The whole point of using one is for the broker to do the research for you but if you want to make an informed choice rather than receive advice you should do your own research and pick your own mortgage.  In your OP you state, "They are meant to have access to the whole of market but for all we know they may have gone straight to Halifax as they will give NHMH the most lucrative kickback fee."  Has this mortgage broker specifically said that they are whole of market?

csgohan4

aidan_ainsley said:

amnblog said:

What would be value of presenting to you the recommended lender and product, and also other products that are not as suitable? To give you the chance to ‘pick’ the wrong option?

Because when it's my money being spent I prefer to consider all the options myself rather than rely on someone else to do the thinking for me. It's me taking the risk after all. Yes they are 'experts' but that doesn't guarantee that they won't suggest a product that is more lucrative for themselves... it seems openess and transparency isn't the default setting here

Your more than welcome to find a lender and see what happens.   The main problem is your using a developer's broker which maybe biased from the offset. I would never use EA/ Developers services, I would always use my own through my own research and reviews.