Advantages of using mortgage broker

Ybe

Are there any advantages to using a mortgage broker instead of going direct to a bank if you know which lender you want to go with? For example, does an offer with a mortgage in principle from a mortgage broker carry more weight than one from a bank direct? 

moneysavinghero

The only real reason to use a broker is if you are an unusual case as they will know which broker will take on people like you. If you are a straightforward case, have done your research and know which bank you are going to use and don't need any hand-holding throughout the process then there are no advantages to using a broker.

caprikid1

A mortgage broker does this all day long, why you believe to be the best place could be far from it. The mortgage brokers actually does quite a lot of work for most mortgage applications, it is also useful to get accurate up to date advice on relevant protection.
Last thing you want is for the application to get rejected.

k8withan8

We used a mortgage broker and wanted to use the bank we currently both use. We got a much better deal through him than we did going directly through our bank 

Justonemorecupoftea

The have access to better deals and do a lot of the leg work. Plus they are free.

Ybe

Justonemorecupoftea said:

The have access to better deals and do a lot of the leg work. Plus they are free.

All the ones I’ve spoken to all charge around £500 on application. 

MountainnAsh

My broker cost £300. 

She had access to broker only providers and got us a better deal than we could otherwise. 

It was "nice" to have someone who personally was dealing with our case and was there at the end of the phone rather than ringing the bank and getting a different person each day. 

She got me a range of deals and then was able to present them to me. 
I'd go with one again. 

Justonemorecupoftea

Mine was free - she gets a fee from the mortgage providers.

NameUnavailable

I was going to go with a particular lender but agreed to speak to the EA's broker when I put my offer in on a property and he's come back with a much better deal that I didn't find on my internet searches.

So the answer is that it might be better - most are free for initial advice/comparisons (I guess I could have just used the info the broker gave me and still gone direct but I wouldn't do that - he's earnt his fee already).

Sunsaru

Broker all day long. They have access to deals your bank may not be able to offer you.
I got a very good deal from my broker and when it ran out in the middle of my purchase she found me a new deal, at a better rate, within an hour and had it all sorted with 48. (And she was a legend through my house hunting adventure)
Some will charge a fee, others with recoup their fee from the mortgage provider. Well worth it for me.

princeofpounds

A decision in principle from a broker has less weight than one from a lender, because they are not committing their own capital. Many EAs will not accept them as evidence of proceedability - you need to apply through the broker for a lender's DIP ideally, if you're going to be making offers (and under Covid sometimes people are insisting on qualifying before viewings even).

Having said that, my experience of using brokers has always been good. Because they originate mortgages in bulk and often do a lot of the processing work for the lender, they can get access to better pricing than the general public. That usually offsets the fees, sometimes more than offsets. Then you get the general advice and administration support which is usually useful.

Plus, if you have any special circumstances (bonus arrangements, complicated transactions, unusual construction or demise etc) and get a good broker, they can sometimes work minor miracles to get financing. Not only do they have access to detailed lenders' criteria (which is not a total secret as it's based on the CML handbook), but they understand how that criteria is implemented in practice. Plus, they can have a direct discussion with the underwriter who will make the decision.