Mortage straight from back or use a broker

Floricwil

Hi,

I sought advice in the Personal Finance forum but didn't get any feedback. Maybe people here might have a better idea of this....

Basically I am looking to purchase a property. First time doing this so everything is brand new to me!

I have applied to two banks for a mortage and am waiting to hear back from them. Since applying, I have been in touch with a mortage broker and am strongly considering using his services. The reason for this is that as well knowing the process, I've heard they can get better deals applicants.

I just want to know now though, am I at a disadvantage with these 2 banks? Say he applies to the same 2 banks, is the fact that I am now "in the system" already a disadvantage? Will they automatically just offer him the same offer they would have offered me? Would he have been able to get me a better deal had to just applied to the banks with a brand new application and the banks never having heard of me before?

phunkadelic

Broker made the process quicker and simpler for us. That was after a few rejections direct from banks, We still needed all the same docs but he was able to get it sorted easier. They sometimes get a slightly better interest rate too.
When he was going though our options, I just picked a bank that hadn't already rejected us, just in case.
We were covered for free broker with INTO teachers union though, so not sure on their standard fees.

LisaLee

We applied for a mortgage before going with a broker. The representative in the bank had given us the wrong information so when we went with a broker, we were approved by the same bank despite already being in their system.

I’d recommend using a broker as they should have contacts in respective banks that they can discuss applications with. We paid our broker approx €190 but she guided us through the whole purchasing process, including sorting out house insurance, life assurance etc. I’d be happy to recommend her 😊

Floricwil

LisaLee wrote: »

We paid our broker approx €190 but she guided us through the whole purchasing process, including sorting out house insurance, life assurance etc. I’d be happy to recommend her ��

Wow €190? The 2 brokers I've been in touch with have both said they charge €500!

Could you pm me this persons details?

Andrew Beef

We used a mortgage broker; they have a lot to add to what can be a tricky process to navigate.

We paid €500 which was refunded following the drawdown of the mortgage.

murph226

I used a broker after going to the bank, paid €100 and it was the best few quid I ever spent, he was excellent.

Cash_Q

We're currently using a broker who is not charging us anything, he says the bank pays him! Pm for details if anyone wants them

Maz2016

Hi guys, if anyone knows of a good broker (that won't break the bank) in Limerick, I would be greatful for their contact details .

tusk

Hey folks. I have a loan offer for 87% of my house price, on what seems to be one of the higher rates currently in the market, but wondering if it would be worthwhile going to a broker in this situation. Any thoughts on whether I could potentially get a better deal, or if it's even worth it?

Have reached out to one broker to put it the feelers, but any experiences from you guys would be greatly appreciated.

jomalone14

Cash_Q wrote: »

We're currently using a broker who is not charging us anything, he says the bank pays him! Pm for details if anyone wants them

Not an independant broker then........

jayjay2010

Purchased through both broker and bank - the broker was able to get an exception and made the whole process very easy. I would definitely use a broker again

jayjay2010

...also the broker didn't charge anything, they got paid from the bank

tusk

jayjay2010 wrote: »

...also the broker didn't charge anything, they got paid from the bank

Was it a LTV exception or a central bank 3.5 exception?

dubrov

Brokers can be useful but mostly in borderline cases

Broker Advantages
Can advise client through the process
Can package client application in best possible light to maximise potential borrowing

Disadvantages
Brokerage Fee (Some charge directly and some rely on the bank paying them. This may lead to biased advice as the payoff will be dependent on the chosen bank)
Limited coverage (Those who do not charge a fee will only use banks that pay them)


If you think you can comfortably borrow the amount you need, I would apply to all the banks at the same time (document requirements are pretty much the same) and then just pick the best deal when the time comes to draw down the loan.

Bob24

jomalone14 wrote: »

Cash_Q wrote: »

We're currently using a broker who is not charging us anything, he says the bank pays him! Pm for details if anyone wants them

Not an independant broker then........

A broker who charges you 200 euros will get the exact same commission (i.e. incentive) from the chosen bank as a broker who charges you nothing. And while I have no idea of the exact amount I think it is pretty safe to assume that what they get from the bank is quite a bit more than these 200 euros.

So while I get what you’re saying, I don’t think a broker who charges a few hundred quids is significantly more “independant” from the banks than one who charges nothing. I’d say rather than being their primary source of income these fees are just a small extra for them and a mostly a way to get rid of time wasters who have them prepare applications with little intention to actually draw down a mortgage.

And because they get a commission doesn’t mean they are bad. As long as you make sure the bank/rates they get for you are in line with the the best you can get if you go your own way (which I think is often the case), then they can still offer a valuable service helping with the purchase.

Bob24

dubrov wrote: »

Brokers can be useful but mostly in borderline cases

Broker Advantages
Can advise client through the process
Can package client application in best possible light to maximise potential borrowing

Disadvantages
Brokerage Fee (Some charge directly and some rely on the bank paying them. This may lead to biased advice as the payoff will be dependent on the chosen bank)
Limited coverage (Those who do not charge a fee will only use banks that pay them)


If you think you can comfortably borrow the amount you need, I would apply to all the banks at the same time (document requirements are pretty much the same) and then just pick the best deal when the time comes to draw down the loan.

I would have said the same thing before, but having gone through the process both with and without a broker (in both case we were a straightforward case and were asking for much less than banks would be willing to lend us), I would say another advantage of the broker is that they know the whole mortgage but also purchasing process very well and will make things smoother. That can be valuable and save time for someone who is unfamiliar with it.

But yeah having said that still fully agree with the advantages and disadvantages you mention.

Andrew Beef

jomalone14 wrote: »

Not an independant broker then........

They get the same from every bank.

1% of the value of the mortgage.

awec

Broker is a waste of time unless you feel you're going to have some difficulty getting a mortgage. The application process is really straightforward unless you have some issue like a very low income or are on a fixed term contract or have high debts or something.

A broker will get you nothing that you can't get directly from the banks.

douglashyde

We're currently mortgage approved & sale agreed and went with a broker and I would absolutely recommend using one (having handled my first mortgage myself).

-They're your one point-of-contact and will handle all paperwork for you which in my experience is a worth it alone (BOI lost all my paperwork in first mortgage)
- They'll recommend the best way to position your application to maximum loan value
-They'll have their relationships with their respective loan managers which allows for some 'off the record' conversations.

They of course take a commission and you need to use your own common sense to decide on the best possible deal.

Dee01

Have gone through the process with and without a broker. I would 100% recommend using a broker. I was gutted I couldn’t use a broker the 2nd time (due to my existing mortgage tracker rate).

Mortgages are not my area of expertise, but they are the brokers area of expertise. While they do get commission from the bank, it is in their interest to get you an approval and assist with the close of the sale quickly so they get paid. In my experience, this means things move a lot quicker with a broker than without one.

Most don’t charge as they are paid directly from the bank (all of them, not just some) and they take the hassle out of dealing with estate agents and solicitors.

If I ever go through a purchase again I will 100% use a broker.

Cyrus

paying for a broker is madness,

as was pointed out above the process is simple so unless you have bad credit history or something like that do it yourself and manage the situation yourself, no one will care more about you succesfully getting a mortgage than you

Samuel T. Cogley

Broker was actually counter productive for us. Went straight to all the banks. Went with KBC in the end and just got a letter through the post asking us if we want to reduce our rate to 2.95%, so happy out.

Mantis Toboggan

Am I right in saying that bank of Ireland won't deal with brokers?

tusk

Tyson Fury wrote: »

Am I right in saying that bank of Ireland won't deal with brokers?

The broker I contacted said they didn't alright.

Bob24

Tyson Fury wrote: »

Am I right in saying that bank of Ireland won't deal with brokers?

That is my understanding as well.