Broker/direct rate

quad_red

Feel a bit silly for asking this but got a call from BOI this morning. Basically, we had gone through the initial stages of applying for a mortgage with them but the branch were so bloody unhelpful (constantly needing more documentation showing the same things, not reading the documentation that was supplied properly, multiple calls, very unhelpful attitude) that we ended up using a broker recommended by a family friend.

This person is incredibly helpful and came back with definitive approval from AIB and said BOI wanted more info but would probably approve.

Now - I just got a call from BOI chasing the business. They said they have no record of any application on their system AND they offer better rates direct (0.2% better) than through a broker.

Er - is that true? I was under the impression that the cost of the broker ended up with the bank rather than the customer (I know, I sound bloody naive saying that).

Secondly - could the broker have deliberately not applied to BOI if they are getting some sort of kickback from AIB?

killers1

quad_red wrote: »

Feel a bit silly for asking this but got a call from BOI this morning. Basically, we had gone through the initial stages of applying for a mortgage with them but the branch were so bloody unhelpful (constantly needing more documentation showing the same things, not reading the documentation that was supplied properly, multiple calls, very unhelpful attitude) that we ended up using a broker recommended by a family friend.

This person is incredibly helpful and came back with definitive approval from AIB and said BOI wanted more info but would probably approve.

Now - I just got a call from BOI chasing the business. They said they have no record of any application on their system AND they offer better rates direct (0.2% better) than through a broker.

Er - is that true? I was under the impression that the cost of the broker ended up with the bank rather than the customer (I know, I sound bloody naive saying that).

Secondly - could the broker have deliberately not applied to BOI if they are getting some sort of kickback from AIB?

BOI don't deal with brokers directly, they have a separate Intermediary Channel called ICS, slightly different credit policies, slightly different rates. Thats why they have no record of it on their system. If a broker applies to a bank that takes applications from both brokers and direct there is NEVER a different rate or better rate available by applying directly. If you have approval from AIB it'll be at a cheaper rate than BOI no matter how BOI try to sell it to you..

Your broker isn't getting a 'kickback' from AIB. He's being paid to present the application in a manner that meets the banks criteria and allows them to underwrite and approve it easily without AIB having to pay a staff member in a branch to put the application together in a less comprehensive way which might create more work for the underwriting team.

quad_red

Thanks Killers.

killers1 wrote: »

BOI don't deal with brokers directly, they have a separate Intermediary Channel called ICS, slightly different credit policies, slightly different rates

killers1 wrote: »

If a broker applies to a bank that takes applications from both brokers and direct there is NEVER a different rate or better rate available by applying directly

Er - isn't that contradictory?

killers1 wrote: »

Thats why they have no record of it on their system.

An innocuous explanation which he presumably was aware of but used to imply there was a problem.

killers1

quad_red wrote: »

Thanks Killers.





Er - isn't that contradictory?.

Not at all, you're basing it on BOI but as I said they don't deal with brokers. Any other bank that deals with both e.g Aib, Ptsb...etc offer the EXACT same rate to borrowers irrespective of the source of the application.

quad_red

killers1 wrote: »

Not at all, you're basing it on BOI but as I said they don't deal with brokers. Any other bank that deals with both e.g Aib, Ptsb...etc offer the EXACT same rate to borrowers irrespective of the source of the application.

But because of this BOI (specifically) could offer a better rate if we applied directly?

killers1

quad_red wrote: »

But because of this BOI (specifically) could offer a better rate if we applied directly?

They'll offer a better rate than ICS but not AIB or maybe even ptsb depending on your LTV