Broker vs bank for a mortgage.

SneakySpectator

I've been offered a 10 year fixed rate mortgage at 3.99% with a £1,400 initial fee by my bank. However every estate agent is trying to push me towards going with "their" broker. I don't want to rule this option out but generally when one company is pushing the product or service of another company, it's to benefit the respective companies, not the customer.

So the estate agent refers me to a broker and I accept the brokers mortgage deal, the estate agent gets a cut, the broker gets my money and I get an overall worse deal. But I'm uneducated in this area and would like some advice. 

To me 3.99% fixed for 10 years sounds very reasonable and because all my money, investments, payslips etc go through my bank, I feel like a bank is in a much better position to offer me the best deal because they know exactly what my expenses and spending habits are. 

I've spoken to 3 different estate agents and all 3 of them are trying to push their recommended broker towards me. They've sent over emails requesting an insane amount of personal details (proof of savings, 4 months of bank statements, 4 months of credit card statements, photocopy of passport and driving licence, 6 months of payslips, utility bill, copies of my companies injury sickness policy... 

I feel extremely anxious handing over such an amount of personal extremely private information to these guys. Regardless of whether they need it to consider me, I don't want all my information collected into 1 place, god forbid they have a data breach. 

At least with a bank I can take that stuff in person and sit down with someone. I'm certain they're not scams and this is probably just how these things are but for me personally that's just way too much personal data given out to even consider using a broker...

amnblog

Who is your Bank? Nationwide? Presumably the 3.99% 10 year rate has been recommended by their adviser based on your needs and circumstances?

Nearly all Estate Agents have Brokers in house or working in partnership with them. Legally every thing you tell the Broker about your circumstances should be handled within the law and not shared with the Estate Agent.

Your Bank are only interested in their targets, profit and products. An Independent Broker can find you the best option from across the market.

If you are not comfortable working with the Estate Agent's Broker (and many will not blame you), ask a trusted friend for a recommendation.

caprikid1

Most likely the broker will have access to far more deals than the bank.

The bank most likely will still have a commission structure.

Try a broker see what they off.

SneakySpectator

Thanks for the comments, I don't mind seeing what a broker has to offer, I just feel really uncomfortable with the sheer amount of personal information they're trying to get from me, especially on first contact without even discussing anything.

amnblog

Perhaps you have simply been speaking to the wrong Broker?

ACG

Tell the broker the deal you have found. See if they can better it. 
If not, you can then go direct to the bank. 

I do not see brokers as price comparison people (primarily because that forms about 5% of our actual job), but at the same time estate agent brokers generally only want the easy cases. 

But going to your actual bank makes no difference in todays world. They would treat you exactly the same if you banked with another bank. It generally speaking does not improve or hinder your chances of success. 

DullGreyGuy

SneakySpectator said:

I've been offered a 10 year fixed rate mortgage at 3.99% with a £1,400 initial fee by my bank. However every estate agent is trying to push me towards going with "their" broker. I don't want to rule this option out but generally when one company is pushing the product or service of another company, it's to benefit the respective companies, not the customer.

So the estate agent refers me to a broker and I accept the brokers mortgage deal, the estate agent gets a cut, the broker gets my money and I get an overall worse deal. But I'm uneducated in this area and would like some advice. 

To me 3.99% fixed for 10 years sounds very reasonable and because all my money, investments, payslips etc go through my bank, I feel like a bank is in a much better position to offer me the best deal because they know exactly what my expenses and spending habits are. 

I've spoken to 3 different estate agents and all 3 of them are trying to push their recommended broker towards me. They've sent over emails requesting an insane amount of personal details (proof of savings, 4 months of bank statements, 4 months of credit card statements, photocopy of passport and driving licence, 6 months of payslips, utility bill, copies of my companies injury sickness policy... 

I feel extremely anxious handing over such an amount of personal extremely private information to these guys. Regardless of whether they need it to consider me, I don't want all my information collected into 1 place, god forbid they have a data breach. 

At least with a bank I can take that stuff in person and sit down with someone. I'm certain they're not scams and this is probably just how these things are but for me personally that's just way too much personal data given out to even consider using a broker...

Ultimately if you are happy with the deal and dont want to shop around then do what you want. 

You can select your own broker if you want, you dont have to go to the ones estate agents recommend. A lot of information will ultimately be required but not up front. 

A broker will have access to many more options than what the bank has to offer, for all three of our mortgages a broker has gotten a fractionally better rate from our bank than what the bank themselves were offering us. Whilst it was typically just a bp or two when you are talking about 6 figure debts it makes a difference. 

StephenMortgages

Broker here - you will likely get the same (not always) rate that banks offer to you direct as you can through a broker, but a broker can look at the whole of the market. 

Having worked for a high street bank for 10 years as a mortgage advisor, I never had as much time for my clients as I do now that I am an independent broker. I love the freedom I now get and all my clients get my personal phone number which is my biggest USP as I know how how frustrating lack of contact can be. 

As a broker I look at the whole of the market to find my clients the best deals, whereas as a bank advisor you can only look at that banks products. 

As a broker I am more proactive to get my clients onto a lower rate if rates were to drop, unlike at the bank were this is not encouraged unless asked by the client. 

You definitely do not need to go with the broker being pushed by the estate, as they will only do this to try and get costs and keep it all in house. Go with who you trust is the most important. 

caprikid1

StephenMortgages said:

Broker here - you will likely get the same (not always) rate that banks offer to you direct as you can through a broker, but a broker can look at the whole of the market. 

Having worked for a high street bank for 10 years as a mortgage advisor, I never had as much time for my clients as I do now that I am an independent broker. I love the freedom I now get and all my clients get my personal phone number which is my biggest USP as I know how how frustrating lack of contact can be. 

As a broker I look at the whole of the market to find my clients the best deals, whereas as a bank advisor you can only look at that banks products. 

As a broker I am more proactive to get my clients onto a lower rate if rates were to drop, unlike at the bank were this is not encouraged unless asked by the client. 

You definitely do not need to go with the broker being pushed by the estate, as they will only do this to try and get costs and keep it all in house. Go with who you trust is the most important. 

Spot on !, Brokers are so better trained to do a better job.