Broker or bank lender

LaiLeng

I am in the process of remortgaging as my existing contract is ending. The best deal I have found is with my existing bank lender, which was confirmed by a broker, Mojo (in conjunction with USwitch). 

I am thinking of sealing the new deal with the Mojo consultant to help her earn the commission, instead of going straight to my bank. My concern is whether there is any disadvantage of doing so - for example, losing my loyalty status with my current bank lender, and therefore negating future good deals. 

I would appreciate any thoughts. Thank you. 

DullGreyGuy

My bank has always been a few BPS cheaper via a broker than direct so shows what they think about loyalty. 

ACG

There is no disadvantage to using a broker for a mortgage deal. Thats not me being biased because of my job, if there were I would happily say so. 

LaiLeng

DullGreyGuy said:

My bank has always been a few BPS cheaper via a broker than direct so shows what they think about loyalty. 

That’s a shame. My bank has always rewarded loyalty and gives very competitive rates. Thank you for your response. 

LaiLeng

ACG said:

There is no disadvantage to using a broker for a mortgage deal. Thats not me being biased because of my job, if there were I would happily say so. 

Thank you for your thoughts. I had hoped that would be the case. 

ACG

DullGreyGuy said:

My bank has always been a few BPS cheaper via a broker than direct so shows what they think about loyalty. 

I dont think it is that so much. 
More that if you go direct, you need to speak to an adviser, maybe an administrator. They also need to pay for a team manager no doubt and then a head of department. You also probably have an administrator and probably another manager for that team. 

They want paying a wage, they probably get a pension, maybe bonuses and the office they sit in all cost money. They are also taking on the risk should it turn out to be bad advise or there is a mistake. 

Alternatively they pay a broker around 0.35% of the mortgage to do the packaging, submit the application and pay for their own offices. 

Some lenders dual price in favour of brokers, some in favour of internally, some swap and change and some lenders never dual price. But there is no such thing as loyalty in big businesses really.