Mortgage brokers - yes or no?

owenjt

FTB and am using L&C. Found them to really helpful, offering guidance throughout, managing the process and keeping me updated. Their rates are as competitive as what I've found online.

Have you looked at the detail of the deals you've found online that seem cheaper? They may not be as good as you think they are. Also remember that the broker is there is help you choose the right product, answer any questions and deal with the application process - you're getting all this invaluable assistance for free with a broker like L&C.

seven-day-weekend

When my son bought his flat, he had a low paid job, no credit history (because he'd never had any credit) and was buying a flat with a short lease.  He did however, have 40% deposit.

He used a mortgage broker as his situation was unusual and most high street lenders would not have given him a mortgage, even though he could afford it. The broker got him a good deal with Santander.

When we were downsizing to our bungalow, we wanted to buy it without selling our house first so that we could renovate it at our leisure.  We were in our mid-60s and needed a mortgage of about £100k.  A different broker organised this for us (we paid it off within a couple of months, but it gave us that leeway).

So, my advice would be, if you have a straightforward situation, don't bother with a broker, but if it is in any way unusual, a broker can be a godsend.

funnyvideo

I used a broker (or mortgage advisor as he was known) because I had no idea what I was doing when buying a property. He told me my job was to have an offer accepted on a property and he would take care of everything after that. I even asked him to clarify if he really meant everything, there was nothing more I had to do of my own accord and he said yes. He also said that all costs are paid on completion.

Offer accepted and he asked whether I'd arranged a solicitor, so much for taking care of everything. He warned me of solicitors who don't answer their phones but he was the one who never answered his phone. My solicitor told me on more than 1 occasion he needed kicking up the backside.

A few days after he told me I don't pay anything until completion he was asking for his fee to be paid. A few days after that I had to pay for the survey. When making the mortgage application it was more me filling the forms in and him passing them on. He would send me a gifted deposit form for my parents to fill in even though I'd already told him I saved the deposit myself.

He was just a bottleneck in the whole process really. I phoned the lender direct more than once because I couldn't get hold of him only to find the lenders couldn't get hold of him either. 

Now I'm a bit more knowledgeable I know his job is simply to find a mortgage and be a middle man between you and the lender. I just wish he would have told me that rather than lead me to believe he'd take care of everything. I also realise other bits of so called advise he gave me early on was nonsense too e.g. stay clear of Zoopla. 

I still get calls when it's time for mortgage renewal saying he can do it for me for free. I've no desire to give him more business after the way he messed me around particularly as all I need to do is log in to my account and select a product.

Tokmon

I definitely wouldn't use a broker unless i had difficult circumstances and the information i needed to choose a suitable mortgage provider wasn't freely available.

Adding another middleman to the house buying process just means there is potential to slow things down further if there are any issues with them. I much prefer to get all the information directly and do the chasing if needed as the less involved you are in the purchase and the less control you have then it just makes it more stressful when things go wrong.

People often say that house buying is one of the most stressful things you can do and it's not going to be any less stressful if you don't do any research and just rely on other people to give you information and do any chasing.

Greymug

My partner and I used a mortgage broker from a company called Firstmortgage. They are well known and have tons of branches throughout the UK.

They're one of those brokers that get a fee from the lender so it was free for us.

Worst experience of my life. The broker was awful, made a series of mistakes that ended up in us getting our mortgage rejected and losing out on a house.

We then went with an independent mortgage broker who actually knew what to do given our situation (I was self employed at the time). Paid £400 upfront and it was the best money we ever spent. The guy was knowledgeable and would keep us updated every couple of day. Got the mortgage approved quickly and with no issues whatsoever.

CJ_AND

Brokers seem to streamline the process of shopping around a little! Found this article that kinda compares bank vs broker to see the benefits. The company was called Charles Rothco!

annetheman

Great advice here already so I'll just add my experience for tuppence.

As a FTB, I used a broker because a) I had some adverse in my profile and b) I was going for Shared Ownership, which only specific lenders accept.

I paid £500 and he messed up my first application to LBS so I was automatically rejected at soft search (must have got my name wrong or something, I know because LBS had previously given me an AIP and even done the valuation on my flat but time lapsed waiting EWS1 so had to apply again). He then used Kent Reliance, which had ridiculously high rates, but they accept basically anyone so I think he went for them because he couldn't afford to get it wrong again - there were better options for me.

Recently, as a home mover, I had a broker get me a deal within 3 days - I definitely could've applied myself as much better profile and a "normal" house purchase this time. BUT, after I changed house to a house with a non-standard construction, this is where the broker was invaluable - she chose the only one of few that will lend on this type of house. I wouldn't have done it without a broker, and she did a fantastic job. Paid £99.

So next time, with a clean profile, and remortgaging hopefully on my house after I've renovated to make it standard construction, I will just do it myself. 

If there is any part of you, your application, your employment, your credit history, your house etc that isn't bog standard, a broker is very helpful indeed.