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Problems with mortgage broker

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  • 19-12-2014 8:25pm
    #1
    natali1982
    Registered Users Posts: 115 ✭✭


    I'm interested if having a mortgage broker results in higher rate / monthly mortgage payments? We are in final stage of buying a house and we are extremely unhappy with our broker. We decided to get life cover with different provider as it was 30% cheaper and now she is intimidating us and requesting to cancel policy as she was supossed to take care of this. She said she is working completely for free and now requests compensation. At the beginning we were told her fee is covered by bank. Would it be cheaper for us dealing directly with bank? Thank you


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    #2
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    I used a broker that charged a fee. Frankly I'm not 100% sure what she's been able to add other than guide us through the process and perhaps put out best foot forward. Frankly using a broker limits your options these days as there are very few people lending now and some won't deal with brokers.

    My advice if you've got the mortgage all sorted is tell her to p!ss off. Obviously pay whatever is in your contract but other than that - sling hook.

    I don't think the mortgage you get will be any different to going through a broker or not, ours isn't. I'm open to correction. Why not check the website of the bank that's doing the mortgage?


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    #3
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    If she is 'free' it means she is being paid by the bank. She is not your friend- seeking life assurance and mortgage quotes for you- out of the goodness of her heart. Nothing is free- there is always a price to be paid- whether that price is upfront or hidden- is a different matter.

    She may loose her fee from the bank or lender- if you decide to go and buy life assurance elsewhere- and if she does- you should expect to compensate her accordingly.

    I don't get why you thought this was all 'free'- nothing- absolutely nothing- is free...........


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    #4
    Glenbhoy
    Registered Users Posts: 1,853 ✭✭✭Glenbhoy


    The_Conductor wrote: »
    If she is 'free' it means she is being paid by the bank. She is not your friend- seeking life assurance and mortgage quotes for you- out of the goodness of her heart. Nothing is free- there is always a price to be paid- whether that price is upfront or hidden- is a different matter.

    She may loose her fee from the bank or lender- if you decide to go and buy life assurance elsewhere- and if she does- you should expect to compensate her accordingly.

    I don't get why you thought this was all 'free'- nothing- absolutely nothing- is free...........

    In fairness to the OP, it seems that this is what OP was told by the broker, or at least what the OP understood the agreement to be, obviously we'd need to see the terms of the contract or engagement letter if such exists before we could definitively comment.


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    #5
    Arbiter of Good Taste
    Registered Users Posts: 2,200 ✭✭✭Arbiter of Good Taste


    Glenbhoy wrote: »
    In fairness to the OP, it seems that this is what OP was told by the broker, or at least what the OP understood the agreement to be, obviously we'd need to see the terms of the contract or engagement letter if such exists before we could definitively comment.

    Sounds to me like the OP never bothered reading the Ts&Cs.


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    #6
    the_syco
    Registered Users Posts: 37,301 ✭✭✭✭the_syco


    natali1982 wrote: »
    We decided to get life cover with different provider as it was 30% cheaper
    Following on from what I've read in the above three posts, I'd wonder if the "30% cheaper" works out cheaper when you have to pay the broker? And you may not have the option to just let her go, depending on the T&C that you agreed.


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    #7
    MouseTail
    Registered Users Posts: 1,663 ✭✭✭MouseTail


    The banks all offer more or less the same commission to brokers, and its not very much afaik, so they do work for best mortgage deal for you. They make their money on life insurance commission, so I think it was a bit cheeky to sort your own.
    You could have cancelled after a year, and gone for a cheaper quote.

    I am not sure she can come after you for a fee, that would depend on the contract with her.


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    #8
    braddun
    Banned (with Prison Access) Posts: 1,221 ✭✭✭braddun


    don't buy whole life insurance

    buy term life


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    #9
    Weyhey
    Registered Users Posts: 754 ✭✭✭Weyhey


    I would have assumed that a Mortgage Broker would get some commission for setting up a mortgage but would never have thought you SHOULD go with them for insurance etc. This is news to me. My broker has never mentioned it. I also don't remember getting a copy of the brokers terms and conditions to check.

    You could tell yours that you are happy to go with them for insurance but only if they match the quotes you have?

    How can your broker cancel your policy? I assume when you say policy you are talking about her cancelling the insurance policy and not the mortgage?

    Have a read of this page also which says to keep in mind if the insurance is with your mortgage lender or not and issues arising from this if you want to move mortgage later on. It doesn't mention if you HAVE to take out insurance via your broker however.
    http://www.consumerhelp.ie/mortgage-protection

    [B]Do you have to buy mortgage protection insurance from your mortgage lender?[/B]

    Most mortgage lenders offer to arrange mortgage protection insurance for you when you apply for a mortgage.
    You do not have to take the mortgage protection policy your lender offers you and you are free to shop around for a suitable policy. Your lender cannot refuse you a mortgage just because you don't accept the policy they recommend.
    It may be convenient for you to arrange your mortgage protection insurance through your lender as you can pay your premiums as part of your mortgage repayment.
    However, be aware that if you buy the policy through your lender, you are insured under the lender’s group policy. This may restrict you if you want to switch your mortgage later on as your lender will automatically cancel your mortgage protection insurance when you move your mortgage. This means that you will have to buy new mortgage protection insurance when you move your mortgage and the older you are, the more it will cost you. If your health has dis-improved since you took out your mortgage, you may not be able to get new mortgage protection cover.
    - See more at: http://www.consumerhelp.ie/mortgage-protection#sthash.Wx0xF8gY.dpuf


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    #10
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Weyhey- you are quoting guidance for someone who goes to a lender to buy a mortgage. The OP did not do this- they went to a Mortgage Broker- which is a different proposition altogether. You don't have to take the insurance from the mortgage lender- however, if the mortgage broker is not being paid by the person seeking the mortgage- normally, the bulk of their remuneration- is commission from the lender and the life assurance company. If you decide to chop half of the mortgage brokers income from them- it is only fair and reasonable to expect to have to pay them compensation.

    The OP needs to look at the agreement they have with the mortgage broker (not the lender).

    I'm going to echo what I said above- nothing is free- you just pay for it by a different method.......


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    #11
    Weyhey
    Registered Users Posts: 754 ✭✭✭Weyhey


    The_Conductor wrote: »
    Weyhey- you are quoting guidance for someone who goes to a lender to buy a mortgage. The OP did not do this- they went to a Mortgage Broker- which is a different proposition altogether.

    Ah I know that, I just thought it was important to note that if you move mortgage later on and mortgage protection is with the lender that it will get cancelled and depending on age or health of buyer at the time it may make it more difficult or expensive to get a new one.
    I wasn't aware of this and I wasn't aware that morally you should purchase your insurance through your broker - even if there are cheaper options out there. It may seem very obvious to others but to me and the OP it wasn't.

    Anyone know what commission rates Brokers get on mortgages and insurance as a matter of interest?


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