Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Mortgage - use a broker or not?

Options
  • 19-02-2019 6:46pm
    #1
    TedsRevengeP
    Registered Users Posts: 162 ✭✭


    Hi guys,

    We're using the Help to Buy scheme and have our mortgage paperwork together. We were about to proceed with a broker but somebody has told us if we use a broker there are disadvantages. For instance, with EBS if you go through a broker you lose access to the 3% cashback.

    Does anybody know if this is true? We thought there was no disadvantage to using a broker.

    Thanks


Comments

  • Options
    #2
    Prospector1989
    Registered Users Posts: 212 ✭✭Prospector1989


    Had a quick scan of this and no mention of any exclusions for brokers.
    https://www.ebs.ie/mortgages/back-in-cash

    I know we'll have 2% back from PTSB all going well.

    As for deciding if you want a broker, we went with one as we've a lot going on with work and other commitments and we hadn't a clue which bank would offer us a mortgage (complicated circumstances), so having the broker doing all the running around is a massive lifesaver.

    Not sure what the benefits are if you know what bank you're going to from the beginning but someone else may be able to advise.


  • Options
    #3
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    At the risk of asking the obvious, did you check with your broker?


  • Options
    #4
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    Hiw does the cash back work ?


  • Options
    #5
    Askthe EA
    Registered Users Posts: 724 ✭✭✭Askthe EA


    TedsRevengeP wrote: »
    Hi guys,

    We're using the Help to Buy scheme and have our mortgage paperwork together. We were about to proceed with a broker but somebody has told us if we use a broker there are disadvantages. For instance, with EBS if you go through a broker you lose access to the 3% cashback.

    Does anybody know if this is true? We thought there was no disadvantage to using a broker.

    Thanks

    I doubt it. We went through a broker for a PTSB mortgage and got the cashback.


  • Options
    #6
    Wheres Me Jumper?
    Closed Accounts Posts: 1,288 ✭✭✭Wheres Me Jumper?


    Brokers generally get paid a comission by the financial institution, and therefore have a built-in bias which may/may not be in your best interest. (no pun intended)
    If you can it's always better to do the leg-work yourself and go direct to the lender.


  • Advertisement
  • Options
    #7
    Askthe EA
    Registered Users Posts: 724 ✭✭✭Askthe EA


    Wheres Me Jumper? wrote: »
    Brokers generally get paid a comission by the financial institution, and therefore have a built-in bias which may/may not be in your best interest. (no pun intended)
    If you can it's always better to do the leg-work yourself and go direct to the lender.

    While this is true, they also look to deal with all the banks not just one and they (well, in our case) provide a list of option and the various pros and cons. Ours also gave a list of what each option would cost over the term of the loan which was handy.

    What I would say though with brokers, when you are discussing fixed mortgages and they start talking about clawbacks etc, ignore them. If you lock in for three years and want to change after one, you are entitled to do so and clawbacks arent permitted. Brokers only get their full fees from the bank once the 3/5 fixed period ends.


  • Options
    #8
    Wheres Me Jumper?
    Closed Accounts Posts: 1,288 ✭✭✭Wheres Me Jumper?


    Askthe EA wrote: »
    While this is true, they also look to deal with all the banks not just one and they (well, in our case) provide a list of option and the various pros and cons. Ours also gave a list of what each option would cost over the term of the loan which was handy.

    What I would say though with brokers, when you are discussing fixed mortgages and they start talking about clawbacks etc, ignore them. If you lock in for three years and want to change after one, you are entitled to do so and clawbacks arent permitted. Brokers only get their full fees from the bank once the 3/5 fixed period ends.

    maybe things have changed from when i worked as a broker, but my experience is, unless you pay them a fee upfront, they do NOT look at all lenders.
    they will only place your mortgage with a lender that pays them a commission.
    any lender that does not pay them will be quietly ignored, or shoved to oneside, or you'll be told you "don't meet their strict criteria".

    as with so many questions in life, if you want answers then follow the money.


  • Options
    #9
    Askthe EA
    Registered Users Posts: 724 ✭✭✭Askthe EA


    Wheres Me Jumper? wrote: »
    unless you pay them a fee upfront, they do NOT look at all lenders.

    To be fair, we did pay our broker a refundable fee upfront.


  • Options
    #10
    Wheres Me Jumper?
    Closed Accounts Posts: 1,288 ✭✭✭Wheres Me Jumper?


    Askthe EA wrote: »
    To be fair, we did pay our broker a refundable fee upfront.

    on what basis was the fee refundable?


  • Options
    #11
    Askthe EA
    Registered Users Posts: 724 ✭✭✭Askthe EA


    Wheres Me Jumper? wrote: »
    on what basis was the fee refundable?

    When we drew down our mortgage they refunded the fee.


  • Advertisement
  • Options
    #12
    Wheres Me Jumper?
    Closed Accounts Posts: 1,288 ✭✭✭Wheres Me Jumper?


    Askthe EA wrote: »
    When we drew down our mortgage they refunded the fee.

    Exactly that when they got paid their commission by the lender. usually 1-2% of the mortgage value.
    to me that smacks of just an attempt to appear independent, and to avoid a situation where you were likely to shop around and deal direct with a lender.

    either way they got paid, but that doesn't mean you necessarily got the best advice

    like i said earlier follow the money.


  • Options
    #13
    punisher5112
    Registered Users Posts: 24,644 ✭✭✭✭punisher5112


    We tried a broker, put everything in. We were told yes we would have no issues and an amount was said to be achieved with our finances.

    We waited and waited, more documents needed then more then more even though we had given everything and extra and we get told after nearly 2 months not a hope.

    We took our documents back went to ptsb and approved.

    We really thought we were done and hadn't a chance but we're pleasantly surprised.


  • Options
    #14
    Askthe EA
    Registered Users Posts: 724 ✭✭✭Askthe EA


    Wheres Me Jumper? wrote: »
    Exactly that when they got paid their commission by the lender. usually 1-2% of the mortgage value.
    to me that smacks of just an attempt to appear independent, and to avoid a situation where you were likely to shop around and deal direct with a lender.

    either way they got paid, but that doesn't mean you necessarily got the best advice

    like i said earlier follow the money.

    Thats one way of looking at it, the other being they dont want to go to all the work and then you decide to go straight to the bank they have incurred costs without payment.

    Look, all I can say is that our broker didnt put us under any pressure to sign with any of the banks, but maybe like any other professions, there are good and bad.


Advertisement