Going direct vs. using a broker - risky?

jasdev

Recently put down a reservation payment on a new build, seller keen to promote their appointed "free, independent" conveyancer and broker.

Had to nominate a conveyancer/solicitor and a broker/adviser on the reservation agreement, which I was lead to believe had to be completed within 48 hours of agreeing a purchase price on the build.

Try getting quotes from solicitors within 48 hours in this market... eventually went with one who was first to get in touch with me, and wasn't the most expensive I'd seen (though still ridiculously expensive). Went ahead and put them on the agreement.

Next up, have a telephone appointment booked with one lender's mortgage adviser, but not for a week. Will call back to some other lenders too. Had four Decisions in Principle before I viewed the build, three from lenders, one from a broker (L&C), but also used MortgageGym to find the cheapest total cost over 5 years assuming a 5-year fix on London HtB with 5% deposit. Still, got serious pushback from the seller when I suggested I would be going ahead without using a broker (and why not use their "free, independent" broker??) and lots of warnings about the work involved in acting as my own broker.

So I thought I'd ask: is there any truth to that? Will I come to regret not using their appointed broker?

MaryNB

I was buying an older property and the EA was pushing me to use their mortgage broker. Even when I refused, I still had to have a meeting with their broker as part of a so-called "financial check"...it was a sales pitch. Despite this "financial check", he didn't ask for any deposit info. I submitted my deposit info directly to the EA later.  I was told it would the vendor would prefer if I went with the EA's broker as it would give them reassurance and that it would make my offer more attractive. I wasn't paying £600 for some "lifetime membership" rubbish! I went directly to my lender, offer was accepted and have been going to my front door every 15 min so far this morning to see if my mortgage offer has arrived. 

Peter74

MaryNB said:

I was buying an older property and the EA was pushing me to use their mortgage broker. Even when I refused, I still had to have a meeting with their broker as part of a so-called "financial check"...it was a sales pitch. Despite this "financial check", he didn't ask for any deposit info. I submitted my deposit info directly to the EA later.  I was told it would the vendor would prefer if I went with the EA's broker as it would give them reassurance and that it would make my offer more attractive. I wasn't paying £600 for some "lifetime membership" rubbish! I went directly to my lender, offer was accepted and have been going to my front door every 15 min so far this morning to see if my mortgage offer has arrived. 

Who is the EA?  Sounds like a right bunch of cowboys!

Verix

You definitely can do all the work yourself. There are a number of benefits to using a broker, including our availability, access to products, knowledge of lender criteria, ability to salvage situations when things go wrong. With new builds you do have another stress to contend with which is the builder. Most builders are going to make you sign an agreement stating you will exchange contracts within 4-6 weeks of reserving which means that, particularly at the moment, things need to get processed very quickly on the mortgage and legal front. The developer you are buying off might be more lenient than others, but certainly where I am, it's a sellers market so the risk of being kicked off the plot may be a real possibility if you can't keep to their timelines. Going with their nominated broker and solicitor can show willing on your part and if there are any problems you can just throw it back at the developer for recommending them to you. 

Whatever you decide I hope it works out.

söpöpöllö

MaryNB said:

I was buying an older property and the EA was pushing me to use their mortgage broker. Even when I refused, I still had to have a meeting with their broker as part of a so-called "financial check"...it was a sales pitch. Despite this "financial check", he didn't ask for any deposit info. I submitted my deposit info directly to the EA later.  I was told it would the vendor would prefer if I went with the EA's broker as it would give them reassurance and that it would make my offer more attractive. I wasn't paying £600 for some "lifetime membership" rubbish! I went directly to my lender, offer was accepted and have been going to my front door every 15 min so far this morning to see if my mortgage offer has arrived. 

Sounds like William H Brown or someone in the same group. We had very similar pushiness when we were just trying to view a house they were marketing. Apparently if we wanted to buy the house, we'd have to tell them immediately after viewing because it would sell in minutes, and we would have to use their broker because the transaction would then be quicker and that's what the vendor wants. The house is still on the market six weeks later.

I would always use my own broker and solicitor, not someone the EA is recommending.

bamgbost

I would recommend a broker. Worth their weight in gold mate

amnblog

..and where are you on the Help to Buy Equity Loan JasDev?

jasdev

@amnblog Not sure, do you mean with the PIF or something further down the process?

@Verix Thanks! One pro to using a broker that I'm presently highly aware of is that they might have a phone that doesn't cut out in the middle of calls! My mobile reception is dreadful. Agreed, the developer has set a completion date that is 4 weeks from the acceptance of offer date. Things could get very tight. Good thing is that I'm an opportunistic purchaser so if the developer walks away, I wouldn't shed any tears. Where I would be cautious with respect to using their nominated solicitor in light of the leasehold scandal.

Peter74

söpöpöllö said:

MaryNB said:

I was buying an older property and the EA was pushing me to use their mortgage broker. Even when I refused, I still had to have a meeting with their broker as part of a so-called "financial check"...it was a sales pitch. Despite this "financial check", he didn't ask for any deposit info. I submitted my deposit info directly to the EA later.  I was told it would the vendor would prefer if I went with the EA's broker as it would give them reassurance and that it would make my offer more attractive. I wasn't paying £600 for some "lifetime membership" rubbish! I went directly to my lender, offer was accepted and have been going to my front door every 15 min so far this morning to see if my mortgage offer has arrived. 

Sounds like William H Brown or someone in the same group. We had very similar pushiness when we were just trying to view a house they were marketing. Apparently if we wanted to buy the house, we'd have to tell them immediately after viewing because it would sell in minutes, and we would have to use their broker because the transaction would then be quicker and that's what the vendor wants. The house is still on the market six weeks later.

I would always use my own broker and solicitor, not someone the EA is recommending.

Sounds like the usual consumer criminal offences being committed then?  All verbal of course!

jane_

MaryNB said:

I was buying an older property and the EA was pushing me to use their mortgage broker. Even when I refused, I still had to have a meeting with their broker as part of a so-called "financial check"...it was a sales pitch. Despite this "financial check", he didn't ask for any deposit info. I submitted my deposit info directly to the EA later.  I was told it would the vendor would prefer if I went with the EA's broker as it would give them reassurance and that it would make my offer more attractive. I wasn't paying £600 for some "lifetime membership" rubbish! I went directly to my lender, offer was accepted and have been going to my front door every 15 min so far this morning to see if my mortgage offer has arrived. 

Ha, I can guess who this is as I had the exact same thing happen - even though I told them I was committed to a broker already. They couldn’t get anywhere near the rate my broker had found for me either. Their in-house conveyancers were also much more expensive! 

MaryNB

jane_ said:

MaryNB said:

I was buying an older property and the EA was pushing me to use their mortgage broker. Even when I refused, I still had to have a meeting with their broker as part of a so-called "financial check"...it was a sales pitch. Despite this "financial check", he didn't ask for any deposit info. I submitted my deposit info directly to the EA later.  I was told it would the vendor would prefer if I went with the EA's broker as it would give them reassurance and that it would make my offer more attractive. I wasn't paying £600 for some "lifetime membership" rubbish! I went directly to my lender, offer was accepted and have been going to my front door every 15 min so far this morning to see if my mortgage offer has arrived. 

Ha, I can guess who this is as I had the exact same thing happen - even though I told them I was committed to a broker already. They couldn’t get anywhere near the rate my broker had found for me either. Their in-house conveyancers were also much more expensive! 

I had a similar level of service. The interest rates were no better than what I had found myself. I told them which lender I was going with, EA's advisor told me I could get 5x with Natwest. Natwest said otherwise! Would only give me 4.5x. Wasted several days with Natwest. Went back to my chosen lender who gave my 4.75x my salary at a really decent interest rate. 

The entire "financial check" was a mortgage advice appointment. Such a farce. They had walked me into a full mortgage advisor appointment previously by essentially making out it was the next step in the process. I quickly cancelled. They got me back with this "financial check" but at least I didn't end up paying the fees.