Mortgage brokers - yes or no?

logface100

I am looking to buy for the first time. The received wisdom is to use a mortgage broker. However, I have found that using simple mortgage comparisons is bringing up better deals than those with online brokers like L&C (recommended by MSE). I have also emailed two brokers who haven't bothered to reply, plus my friend almost lost out on a flat due to a broker's negligence. I have one friend who went to NatWest (her bank) and got the best deal. Please advise on what you would do. I know that a broker can make the red tape easier. I also know that brokers "have access to the best deals" etc, but I am yet to see this. Many thanks for your time. 

TheJP

I used a broker for my first house purchase, did it myself the second time. I don't think the broker was worth the fee i paid so id do it myself.

TripleH

It's swings and roundabouts really.

Many years ago an ex-colleague got a buy-to-let on 0.5% below BofE base (money came from overseas market) then interest rates fell!! (I think, it was a long time ago).

Some can get better rates than is available but it depends on your circumstances.

If you are not after anything complicated (you're salaried have a deposit, want an uncomplicated house) you may well be better doing it yourself.

Brokers are better when you want something complicated or your circumstances are unusual.

davilown

First time broker, subsequently on my own. If you have good credit and decent deposit, I would probably do it on my own. That way you know what stage you’re at all the way through the process without relying on someone else.
also you can speak directly to the provider as well.

warwick2001

I have used a broker in the past. He was very good, and got us a great deal. We didn't have to pay him, he got paid by the company who we took out the mortgage with, so I assume it was a commission, rather than a client fee.

It all depends on the broker, some are great (like mine), some are awful. Brokers don't have access to the 'best' deals (these are usually available on comparison websites), but they sometimes have access to companies that you don't (or don't know of, such as specialist lenders). They also cannot make 'the red tape easier', as ultimately it is lender that would assess your application, not the broker. The broker puts you in touch with the lender, advises a mortgage product, and possibly helps out with the application. 

If its a straight forward mortgage product, use a comparison website and approach the lender direct (much like your friend who went to Natwest). If you have a few issue's (or foresee a few cropping up (bad credit, previous applications denied etc)) then a broker may be able to find you something. 

Good luck

[Deleted User]

Finding a good broker is sometimes tricky.  Word of mouth is usually the best way forward so ask for recommendations. 

And from then it depends what you want from the broker.  If you want a cheaper deal then its unlikely to be the case at the moment as most lenders in the same lending area offer kind of the same rates.  We do have access to lenders that you cant get direct I suppose and they can be a lifesaver for criteria stuff.   If you are a fairly vanilla case then its likely we get the same deal you get yourself. 

Most clients I have fall in to 3 categories:

1. I dont know what I'm doing so please help me.  This extends to helping them with surveys, legal questions, chasing solicitors, speaking to agents etc.  The real hand holding stuff.  
2. I know how it works but i know my case is tricky so i dont know if i will get rejected or accepted and dont want to waste my time
3.  Heres all my stuff, sort it out for me as im too busy to do it myself. 

The 3rd one is probably my biggest area of business as a client will probably spend about 30 minutes on the phone to me and 15 minutes gathering documents.  Compared to multiple hours on the phone to a lender and weeks between appointments for AIP and App then I think i make their lives a bit easier.  Chatting to them at 8pm on a weekday or a saturday/sunday means they dont have to take hours and hours out of their day to get it done.   I work on my own so if i do that then i just dont work another time.  Makes no odds to me but makes a big difference to the client. 


You can of course find the deal you want and then go to the lender. You'll spend 3 hours speaking to various people and if the property gets declined for any reason and you go to another lender then you spend another 3 hours with them.   Seems a waste of time to me but i am a bit biased    

greensalad

We got ghosted by our first broker, who was going to be fairly useless for us anyway as we were going for a specific product mortgage (a family help type mortgage). However then the 5% deposit thing came in, and so we ended up using Habito because we thought we were a pretty quick and easy case. They found us a mortgage product at a rate we hadn't seen advertised anywhere (HSBC) that was better than what most high street banks were advertising. We found Habito really useful. but we were a pretty clean-cut case and I know they are good for that but not as good when you're a complex case.

logface100

I have tried Habito but they came back with an offer way over what I found on the comparison sites. It's a shame as I'd like to use their service because otherwise it seems good. 

getmore4less

Be careful  some of the deals you see on comparison sites don't exist when you look into the detail.

I have seem MSE miss of fees which make the deal look like the best until you add the missing £1,500

Put up real examples of what you have been offered and what you have found yourself.

RS2OOO

As per advice above - Swings and Roundabouts.

When buying a house with a pile of credit card debt (about £30k) I used a broker and they knew exactly which lender to approach and how to secure the lending - and the process was seamless and successful.

On another occasion when buying with a 50% deposit and no debt I went straight to my chosen lender based on comparison site rates - and the process was seamless and successful.

Switch those 2 instances around and I'd be quite certain of getting some rejections going direct to a lender in the first scenario, and quite sure of not getting such a good rate had I used a broker second time round.

GixerKate

As said previously its swings and roundabouts.  For my first two house buys I did it myself, the second time after getting my information sorted I did a consultation with a broker who was very disappointed that his figures matched mine (there was perhaps £60 in it) and I continued myself.  The third time buying a house I used a broker as the finances were a bit more complicated plus H2B chucked in too.  The only real advantage was that the broker had access to better rates and also dealt with the H2B.