Continuing with mortgage broker?

kasharic Forumite Posts: 19
Part of the Furniture 10 Posts Combo Breaker
Hi - I'm a first-time buyer (fairly normal circumstances, deposit etc), currently viewing properties & have one offer put forward. I recently met with a mortgage advisor/broker. We discussed my means, preferences etc, & helped with the questions I had. Crunching the numbers, he identified that the 5 yr Nationwide fixed rate would be best for me, & has emailed over a Decision In Principle which I can use to substantiate any offers.
All very helpful, but I'm now wondering why, if an offer is accepted, I don't now go to Nationwide directly? Why would I continue meeting with the broker, & potentially incur fees or costs? I'm just confused by the next steps I suppose? In my head, once an offer is accepted, I would apply for the mortgage in full, whilst speaking to conveyancers to get the ball rolling with them - or have I missed something obvious?
Thank you!



  • simon_or
    simon_or Forumite Posts: 890
    500 Posts First Anniversary Name Dropper
    edited 9 June at 7:36PM
    Why did you go to a broker in the first place and what would you gain by cutting them out? You can look up cheapest rates on any comparison site and apply direct if it's a bank that accepts direct applications.

    If the broker charges a fee that you didn't want to pay then there are a whole lot of brokers that don't have a fee. Even ask this broker and they might waive the fee. That way you get the same rate that you would direct and the broker gets paid by the bank for the advice given and time spent.

    I don't think there are any practical barriers stopping you from going direct after getting advice from a broker but it's a tad bit rude imho to waste their time doing all that work when you never wanted to use them but I guess that's an old fashioned view.
  • kasharic
    kasharic Forumite Posts: 19
    Part of the Furniture 10 Posts Combo Breaker
    Thank you - just to clarify a couple of things. The discussion with the advisor was at the suggestion of one of estate agents with whom I had arranged a viewing - she suggested that after the viewing I go back to the estate agents & have a chat with a mortgage advisor. This seemed a good idea, so I was happy to do so. Appreciate it may be rude to now go to Nationwide direct - I guess my question was more to do with what I'd potentially miss out on by doing that - hypothetically speaking
  • MMMee
    MMMee Forumite Posts: 21
    10 Posts First Anniversary Name Dropper
    Having got a mortgage last year with Nationwide, I was really pleased to have gone via a broker as they resolved many 'wrinkles' along the way that I'm not sure we would have easily got past without them. The make-up of my income/circumstances are a little unusual, so the broker was a godsend, being able to talk to the underwriter and explain everything, when initially they had turned us down (for no real good reason, I should add)

    So for me, the money I paid them was well spent, and covered by the bonus Nationwide gave anyway at the time.

    I would guess, if your application is simple/vanilla, you don't need the broker, but tbh I'd look at them as a professional that offers you some technical insurance if things get sticky.

    Also, as @simon_orr says, it is a tad rude to cut them out once you have picked their brains, I think :)
  • nic_c
    nic_c Forumite Posts: 2,884
    Part of the Furniture 1,000 Posts Name Dropper
    A DiP is not a mortgage application or acceptance, it's a very preliminary check to say they would consider you. Lots can effect your applications, delay, cause niggles etc. Maybe you could be lucky do it direct and it go through - or maybe they could find something in your financial history that you'd need to respond to, provide extra paperwork etc and deal with rather than your broker. What have you agreed with your broker, signed anything?

    We initially tried L&C (as it's free) who suggested Halifax, we'd got enough for 5% (almost enough for 10%) saved and although we got the DiP quickly when we'd found somewhere and made a bid, we couldn't get one even with 10%, we could get help from family to push that upwards but they said 20% would be unlikely. We withdrew our offer and were fairly gutted.

    A few weeks later I contacted a few local brokers and settled on one that gave us a lot of info freely over the phone. He stated he only charged a fee for those wanting mortgages under £200K, but all future remortgaging would be free. Sorted a nationwide mortgage with 10% deposit, sorted a couple of blips along the way (because they deal with so many mortgages they have contacts within the mortgage companies who they go to and so probably get stuff moving a lot quicker than Joe public calling up or visiting the bank).

    So in our case, definitely worth the money.
  • TheBanker
    TheBanker Forumite Posts: 1,587
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    The bank I work for receives mortgage applications through brokers and direct from customers.

    The broker applications have a higher acceptance rate (because the broker understands our lending criteria, understands the types of property that we don't like, etc, so can steer customers towards a more appropriate lender). They also get processed quicker because the forms tend to be filled in properly and all supporting documentation is supplied upfront rather than us having to go back to ask for more information.

    And if there are queries, they get resolved quicker because we have an online portal where the broker can see the status of the application and upload additional information if needed. And the brokers have their own contact centre and relationship teams that can help to hurry things up if there's an urgent case.
  • Neilos9
    Neilos9 Forumite Posts: 68
    Part of the Furniture 10 Posts Combo Breaker
    If the broker has a DIP, he hopefully reserved the product for you for 90 days, so is likely going to be better valuse that you can get direct now.....
  • MansonXV
    MansonXV Forumite Posts: 2
    First Post
    Hey there! It's great that you had a productive meeting with the mortgage advisor or broker who helped you with your questions and provided a decision in principle. The reason you might continue working with the broker even after an offer is accepted is because they can assist you with the full mortgage application process, guide you through any complexities, and help ensure everything goes smoothly.
  • Edi81
    Edi81 Forumite Posts: 1,371
    Ninth Anniversary 1,000 Posts Name Dropper Combo Breaker
    Neilos9 said:
    If the broker has a DIP, he hopefully reserved the product for you for 90 days, so is likely going to be better valuse that you can get direct now.....
    Not all lenders do that. I believe Halifax don’t but Nationwide do. 
  • Cs9ja17
    Cs9ja17 Forumite Posts: 20
    10 Posts
    I highly recommend using a broker, mine was fantastic and the price they charged was nothing compared to the amount I spent mortgaging then more recently remortgaging. After the initial questions they handled everything and I barely had to lift a finger.
  • ACG
    ACG Forumite Posts: 23,238
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Realistically you could have a straight forward application and the benefit of the broker is negligible. 
    But if there is a problem and you go direct you are calling a call centre. If you go via a broker and there is a problem, you call the person who has been involved since day 1. 

    On a side note, you have a DIP from nationwide issued maybe yesterday or before. With rates changing by the day who is to say that nationwide will be the best deal tomorrow? 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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