Avoiding broker fee

Rustyman33

Broker has arranged a DIP from a lender, the fee they've quoted is only payable once I'm in receipt of a firm offer.

Other than annoying the broker, are there any pitfalls to approaching the lender direct?

I would potentially be saving £500.

Isthisforreal99

Same rate if you go direct?

Rustyman33

https://forums.moneysavingexpert.com/discussion/comment/81856453#Comment_81856453

This is one aspect I'm looking to find out.

ACG

This is why I put something in our terms that sets out we charge £250 if the customer pulls out after providing a recommendation or DIP.

If their terms do not mention anything like that, then your fine.

But as a broker, I only had to bring that in because of people pumping us for information, taking up our time and then cutting us out. Thats time I could be spending with my family or other customers or playing golf - not necessarily in that order…

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81856557#Comment_81856557

Poor form imho. Do you work for free op? But expect others to?

saajan_12

https://forums.moneysavingexpert.com/discussion/6652406/avoiding-broker-fee

Why would you engage the services of a broker, use the information but not pay them?

eschaton

I wouldn’t personally use a broker and arranged my own mortgages.

But to use one and then try and get out of paying their fee is poor. If I used the proper words then the forum police might get all excited so I’ll refrain from doing so.

Emmia

https://forums.moneysavingexpert.com/discussion/comment/81857637#Comment_81857637

I absolutely agree, I've never used a broker. I've always gone direct to a bank after doing research on their websites, comparison sites etc.

Edit: but we're not people who have financial issues making borrowing harder.

smallblueplanet

Agree with all whats been said. Plus if there's any sort of hiccup you might expect a broker to be better placed to help sort it than if you've gone direct.

kingstreet

As has been mentioned multiple times on here, if you're "vanilla" and borrowing 60% of the property value, you don't really need a broker. The odd 0.05% on/off the rate isn't what we're about.

A broker is here to match circumstances with criteria to ensure the best deal is achieved for those with the "sticky-out bits" that don't flow well through every lender's application pipeline.

We're also well-placed to fight the applicant's corner with our lender contacts when necessary and if the worst does occur, an unexpected decline, we're able to switch lenders very quickly as we already have all the necessary supporting documentation.

Many brokers also charge no fee.