Mortgage Brokers

jennyhayes123

I have rang a mortgage broker today and he has sounded very positive but the thing is he said the banks charge €200 to submit an application. He said he will go through the application and if he feels is will get the go ahead that we pay €200 to submit it. If we get turned down we don't get the €200 back. If we get mortgage approved we pay him €925:50.
Does anyone have any knowledge about whether this is the norm or is it a scam?!

PaulM1977

The mortgage broker will be paid a commission if you end up buying a property, but some brokers do charge a fee on top for the administration that goes with the mortgage application.
If you feel your mortgage application would be fairly straightforward then I would shop around for another broker who won't charge you a fee.

jennyhayes123

We have went to all the banks and no joy. We have 4 kids and they really hold it against us. It's heartbreaking. We aren't going to be paying anymore than we are paying now, can show that we are saving €200 a week on top of paying rent, bills, food, etc but they still don't want to give us one. Seems this is our last resort

Grumpypants

I read an article on this, and AIB pay the best rate to brokers think it was 1% of your loan, coincidentally when we went to a broker who gets paid by the bank, he got us an offer from AIB.

Bank of Ireland had a deal to pay your stamp duty, and Ulster had a 1,500 cash back deal. When AIB offered nothing like that.

When we went direct to both they fell allover themselves to give us a mortgage and at a lower rate than AIB and at 90% not the new 80%.

In short go direct to the bank. It is the same process of filling out the same forms and printing the same documents, it cuts down time and you get the best deal for you.

enfant terrible

jennyhayes123 wrote: »

Can you tell me more about mortgage brokers. The one I was speaking with said banks charge him €200 to submit an application. Is this a back hander?!

I would like to know too, I did a full application with AIB and PTSB.

Will I be charged €200 if I don't draw down one of them?

Thibus

We were charged an up front fee, when we received a letter of offer which gets refunded once we draw down.
If it's a straight forward application then you are probably as well off applying directly.

jennyhayes123

Grumpypants wrote: »

I read an article on this, and AIB pay the best rate to brokers think it was 1% of your loan, coincidentally when we went to a broker who gets paid by the bank, he got us an offer from AIB.

Bank of Ireland had a deal to pay your stamp duty, and Ulster had a 1,500 cash back deal. When AIB offered nothing like that.

When we went direct to both they fell allover themselves to give us a mortgage and at a lower rate than AIB and at 90% not the new 80%.

In short go direct to the bank. It is the same process of filling out the same forms and printing the same documents, it cuts down time and you get the best deal for you.

I have rang every bank going and allies fine and going well till I mention we have 4 kids and it all goes downhill there.
Heartbreaking as we are currently between paying our rent and saving paying almost 2 and half times what our mortgage would actually be a month.
Very frustrating

PaulM1977

PM'd you.