Should I use a mortgage broker?

dr_bogenbroom

Hi,

I might be missing something but what can a broker do that comparison sites like this can't do? Are some products 'broker only'? I'll be roughly borrowing 20% LTV, I work full time in a permanent role, and borrowing well below my maximum lending value. I'm based in NI and AIB seem to be the best @ 4.39% fixed for 5 years (rate published 20th June). 

Thanks

gwynlas

Brokers are paid by providers so there are no downsides to using them. They can advise on each product re early redemptions etc and might have advice on alternative strategies given your low LTV

ACG

gwynlas said:

Brokers are paid by providers so there are no downsides to using them. They can advise on each product re early redemptions etc and might have advice on alternative strategies given your low LTV

Some brokers are. We charged fees on top as the commission is generally not enough. 

ACG

dr_bogenbroom said:

Hi,

I might be missing something but what can a broker do that comparison sites like this can't do? Are some products 'broker only'? I'll be roughly borrowing 20% LTV, I work full time in a permanent role, and borrowing well below my maximum lending value. I'm based in NI and AIB seem to be the best @ 4.39% fixed for 5 years (rate published 20th June). 

Thanks

I could write a list as long as my arm to explain what a broker can do that a price comparison cant - im offended! (joking). 

One of my long standing customers sent me an email last month asking me to find him a new deal, I did and then he came back with some cheaper products. Some of those products were not fixed rates (despite it appearing that they were), some of them would only lend in Wales and the rest would only lend in the Lake District... All well and good, but the client lives in London. 

I think that is a good example of how we can help you to filter out product that wont work for you. I appreciate with AIB you are probably pretty safe on location, but what about other criteria? 

What happens if you fit criteria, but there is a problem? We can help to smooth the process over.

In all fairness though, you sound straight forward so the chances of you actually needing a broker is quite slim. It does not mean it is a bad idea though.

housebuyer143

I personally feel brokers are great for things outside the standard. 
If you have perfect credit, permanent job, low borrowing and buying a standard built property then you can definitely go onto the comparison sites and find the best deal and apply.

simon_or

dr_bogenbroom said:

Hi,

I might be missing something but what can a broker do that comparison sites like this can't do? Are some products 'broker only'? I'll be roughly borrowing 20% LTV, I work full time in a permanent role, and borrowing well below my maximum lending value. I'm based in NI and AIB seem to be the best @ 4.39% fixed for 5 years (rate published 20th June). 

Thanks

For you specifically, perhaps nothing besides a quicker process or being able to skip the queue for an appointment.

But speaking more generally across the UK, for people in your position with uncomplicated finances and requirements, there's plenty they can do to save money, time and sweat.

Like most things in life, not all brokers are made the same, solid ones are hard to find and worth their weight in gold.

There was a great post by @ACG or @K-S which listed some of these, let me see if I can find it.

Edit: found it, I've copy pasted it below
https://forums.moneysavingexpert.com/discussion/comment/79475024/#Comment_79475024

K_S said:

Your statement isn't incorrect as a general statement and I'm certainly not trying to say that everyone should use a broker but even with perm jobs, perfect credit and a good LTV, a good whole of market broker can indeed add a few things with may not always be possible direct. A non-exhaustive list of a few examples -

- access to broker only mainstream lenders like Platform (offers 6+3 months offer validity which has been very useful for some of my clients trying to secure a remo rate more than 6 months in advance), Accord, Scottish Widows, mPowered (their products have been regularly at the top of the charts recently), etc.

- ability to radically compress the timeline to having an application submitted and rate secured by bypassing potentially tedious interviews, weeks long wait for an appointment, etc. Even setting aside the reduction in hassle, in the rate environment that we've been in for the past 6 months this has often meant significant cost savings for many of my clients

- ability to 'reserve' products/rates at DIP stage (eg: Nationwide) without putting in a full application

- notification of an impending lender-specific rate-rise and expediting an application if needed, or 'reserving' a product which some lenders like Barclays allow for intermediaries. Again, this has saved some of my clients a lot of money in the environment that we've been in recently.

- having someone who values the applicant's business far more than most lenders would. This is perhaps more applicable to small firms and/or self-employed independent brokers rather than large volume brokers.

Again, as ACG correctly said, for most people there's no "need" to use a broker if they don't want to, but even for straightforward cases, there are quite a few potential benefits (covering cost, time and effort) to using a competent whole-of-market broker.