Should FTB get mortgage broker

Highroad12

As the title says....should a ftb get a mortgage broker. I know how much I need and met with my bank and got approval in principle.

Interest rate fixed for 5 years looks good so is it worth my while to still get a broker or go ahead with my bank? I'm worried a broker will add delays.

pooch90

Highroad12 wrote: »

As the title says....should a ftb get a mortgage broker. I know how much I need and met with my bank and got approval in principle.

Interest rate fixed for 5 years looks good so is it worth my while to still get a broker or go ahead with my bank? I'm worried a broker will add delays.

If you've already gotten AIP then why would you need a broker? Do you want to apply to other banks? Or what do you think the broker can do for you? We are using a broker to apply because we are a one income family and wanted someone who knew who not to waste our time applying to. But if you're already approved then that's the broker's job kind of done. You need a solicitor for the actual purchase.

Highroad12

pooch90 wrote: »

If you've already gotten AIP then why would you need a broker? Do you want to apply to other banks? Or what do you think the broker can do for you? We are using a broker to apply because we are a one income family and wanted someone who knew who not to waste our time applying to. But if you're already approved then that's the broker's job kind of done. You need a solicitor for the actual purchase.

Thanks for the reply. I just wasn't sure if they would maybe find a better deal

noodler

My broker has no special deals.juat clearly laid out the 9 options out there under a number of headings and then made a recommendation.

Polkadotpjs

Highroad12 wrote: »

As the title says....should a ftb get a mortgage broker. I know how much I need and met with my bank and got approval in principle.

Interest rate fixed for 5 years looks good so is it worth my while to still get a broker or go ahead with my bank? I'm worried a broker will add delays.

It’s absolutely worth talking to a broker. They’ll compare all of the offers from all banks and get you the best deal. Why limit yourself to just one bank? It could save you hundreds in repayments. Application through a broker shouldn’t take any longer than applying yourself in my experience.

awec

Don't bother your arse with a broker unless you envisage problems. The fact you've already got AIP at one bank suggests your application is straightforward.

The banks all publish their rates on their websites, just look at them yourself and pick the best one. It'll probably take you the guts of 30 minutes to figure out which bank has the mortgage package that you want.

brisan

https://www.bonkers.ie/compare-mortgages/

Always better to go straight to the horses mouth and avoid middle men. Never got the point of brokers be it insurance or mortgages they don’t get you anything cheaper and potentially cost more (in the case of insurance anyway).

All banks have their rates published you can work out yourself what’s the best deal before even applying.

woodchuck

It doesn't sound like you need a broker. We were considering getting a broker too, just because the whole experience is so daunting and we hadn't a clue what we were doing. But you figure it out! If you have approval in principle already, you don't need a broker.

We found the following tool very good for comparing rates:
https://www.ccpc.ie/consumers/financial-comparisons/mortgage-comparisons/

If another bank has a better rate, you can apply to them instead. You don't have to stick with your own bank.

hannaeis

Hi all,
I have a question...
We are already with broker, but we are not happy because it takes so much time to get any update from him.
Is it possible to leave a broker without paying anything?
I am afraid that he will charge me anyway.

mugsymugsy

hannaeis wrote: »

Hi all,
I have a question...
We are already with broker, but we are not happy because it takes so much time to get any update from him.
Is it possible to leave a broker without paying anything?
I am afraid that he will charge me anyway.

What does it say in the contract / paperwork you have signed or you have agreed with the broker?

hannaeis

mugsymugsy wrote: »

What does it say in the contract / paperwork you have signed or you have agreed with the broker?

this is exactly what the paperwork says:
"Fees and commissions
We receive a mortgage arrangement fee of 1% of the amount of the mortgage drawn down from lenders.
In respect of life insurance business, details of commission receivable is included in a product information
document, which you are legally entitled to receive before an application is completed and full details will be
included with your cooling-off letter.
In general we do not charge fees for arranging consumer mortgages. If we believe it is necessary to charge a fee ,
we will always agree this with you in writing in advance of providing any business service.
You have the option, which is rarely exercised in practice, to pay in full for our services by way of a fee."

AngryLips

Generally speaking, as an FTB it's easy to go direct. However, I would still recommend a broker for the following reasons:
- They may get rates from the bank not available to individual consumers due to the volume of business they bring to the bank.
- History of health issues or depression? Getting mortgage protection is often straightforward, but if it's not then already having a relationship with a broker will make overcoming that obstacle easier, also they could source significantly cheaper mortgage protection than the one that's pushed by your bank.
- Some mortgage providers only operate through the broker network (such as Avant Money, the most recent entrant to the market with 2% rates).
- Supporting a local business, not just your bank.

On another note, I would be weary of signing up to a 5 year fixed rate given that there will be a couple of new entrants to the market coming soon, Avant Money I've already mentioned, but also An Post have indicated they're going to enter the market too.

awec

AngryLips wrote: »

Generally speaking, as an FTB it's easy to go direct. However, I would still recommend a broker for the following reasons:
- They may get rates from the bank not available to individual consumers due to the volume of business they bring to the bank.
- History of health issues or depression? Getting mortgage protection is often straightforward, but if it's not then already having a relationship with a broker will make overcoming that obstacle easier, also they could source significantly cheaper mortgage protection than the one that's pushed by your bank.
- Some mortgage providers only operate through the broker network (such as Avant Money, the most recent entrant to the market with 2% rates).
- Supporting a local business, not just your bank.

On another note, I would be weary of signing up to a 5 year fixed rate given that there will be a couple of new entrants to the market coming soon, Avant Money I've already mentioned, but also An Post have indicated they're going to enter the market too.

They don't. Brokers cannot get you anything that you cannot get yourself going direct, if any broker suggests otherwise they are flat out lying.

johnnyskeleton

Thatcher Jolly Goalpost wrote: »

Always better to go straight to the horses mouth and avoid middle men. Never got the point of brokers be it insurance or mortgages they don’t get you anything cheaper and potentially cost more (in the case of insurance anyway).

All banks have their rates published you can work out yourself what’s the best deal before even applying.

When you go into a bank branch, you are not dealing directly with the mortgage department. Instead, the mortgage departments consider the branches to be brokers for their mortgages. So the person in a branch will have no more nor less influence over the mortgage decision as an independent broker.

The benefits of a broker usually relate to usual cases such as the self employed or have unusual circumstances etc.

So, in example A, a FTB couple earning €50k each on permanent PAYE jobs with €100k savings (including regular savings history) looking to buy a house worth €400k (i.e. 75% LTV, 3x their combined salary) should have no problem looking up who has the best rates, applying to them directly and getting approval in principle.

In example B, a self employed person with variable income and inconsistent savings with several properties in mind but wants to buy the most expensive one may have difficulties getting approval and different banks may apply different criteria to them. A broker can apply to all and see which one will lend the most, which will provide the best interest rates and which, in the broker's experience, is the more understanding when it comes to self employment, irregular savings, etc.

GetHouseSurvey

It really depends. A broker will generally know exactly what each bank will require from you and can prompt you to have all of that ready. Then they will apply to each bank on your behalf. This can save you a lot of time and duplication of documents etc.

AFAIK, brokers don't get any special rates or deals with the banks, so the above post saying all banks publish their rates is correct. But what a broker can help you do is understand what all the different rates and offers mean. e.g. is 2.8% with no cashback better than 3.0% with 3% cashback? Which one is right for you?

Brokers get a fee from the bank. Not the buyer.

cintec

If brokers can't get you a better rate or higher mortgage then what is the advantage to using them?

Manion

cintec wrote: »

If brokers can't get you a better rate or higher mortgage then what is the advantage to using them?

Polkadotpjs wrote: »

It’s absolutely worth talking to a broker. They’ll compare all of the offers from all banks and get you the best deal. Why limit yourself to just one bank? It could save you hundreds in repayments. Application through a broker shouldn’t take any longer than applying yourself in my experience.

That's the value of the service they offer. You apply once through a broker and they in turn apply to the multiple lenders and advise you on how to best structure you mortgage application to meet the requirements for each lender. You wont getting a reduced rate for going through a broker and a broker maybe have an incentive to push you towards particular lenders due to commission (If you're not paying them, then you're the product they're selling). You're paying of their knowledge and also time/hassle saving of not having to do the paper work yourself.

Applying for AIP can be a mentally taxing and difficult process, if you mess up your application you can end up having to resubmit again. Some lenders have a policy that if they reject you, there is no point applying again for a fixed time period. We applied for AIP 3 times (it took a while to find a house) and by the end the process was an absolute breeze but at the start we where doing all types of stupid ****.

Manion

Manion wrote: »

That's the value of the service they offer. You apply once through a broker and they in turn apply to the multiple lenders and advise you on how to best structure you mortgage application to meet the requirements for each lender. You wont getting a reduced rate for going through a broker and a broker maybe have an incentive to push you towards particular lenders due to commission (If you're not paying them, then you're the product they're selling). You're paying of their knowledge and also time/hassle saving of not having to do the paper work yourself.

Applying for AIP can be a mentally taxing and difficult process, if you mess up your application you can end up having to resubmit again. Some lenders have a policy that if they reject you, there is no point applying again for a fixed time period. We applied for AIP 3 times (it took a while to find a house) and by the end the process was an absolute breeze but at the start we where doing all types of stupid ****.

Once you get everything together for one bank it’s pretty much just sending the same stuff to them all so really they don’t save much work imo.

Manion

We didn't use a broker, but yeah it's not 9 times the work to apply to 9 lenders. It really depends on your circumstances as a previous poster pointed out. I also personally feel I developed a deeper understanding of the mortgage market and the different options by doing the leg work myself. I've known a few people who have gone through brokers and been somewhat ignorant of the constraints of limitations different options placed on them at the end of the day you need to do your own financial planning and a broker will only help so much. For example a broker cannot tell you if a fix rate mortgage is the best option for you in 2 or 3 years time, only you can do that.

Manion

Manion wrote: »

We didn't use a broker, but yeah it's not 9 times the work to apply to 9 lenders. It really depends on your circumstances as a previous poster pointed out. I also personally feel I developed a deeper understanding of the mortgage market and the different options by doing the leg work myself. I've known a few people who have gone through brokers and been somewhat ignorant of the constraints of limitations different options placed on them at the end of the day you need to do your own financial planning and a broker will only help so much. For example a broker cannot tell you if a fix rate mortgage is the best option for you in 2 or 3 years time, only you can do that.

I'd be similar I would much prefer get heavily into the details myself rather than have someone dumb it down. Would make for much more informed decisions etc.

woodchuck

Manion wrote: »

We didn't use a broker, but yeah it's not 9 times the work to apply to 9 lenders.

I also don't see why anyone would apply to 9 different lenders. The rates are all transparent online, so we just found the lowest rate based on our circumstances (size of our deposit, total cost of the house, the fixed term we wanted etc) and applied to that 1 bank. And the bank tells you what documents they need from you. So while it's a pain to gather all the documents, it's not actually that complicated to do it yourself instead of through a broker. I feel a broker would actually make things more complicated, as it's an unnecessary middle man.

The only reason I can see people applying to multiple banks, is if their application has been rejected. Presumably there's a reason it was rejected - in which case a broker might be able to help.

But for a straight forward application where there are no issues (such as the OP), I don't see the need to go through a broker.

woodchuck

woodchuck wrote: »

I also don't see why anyone would apply to 9 different lenders. The rates are all transparent online, so we just found the lowest rate based on our circumstances (size of our deposit, total cost of the house, the fixed term we wanted etc) and applied to that 1 bank. And the bank tells you what documents they need from you. So while it's a pain to gather all the documents, it's not actually that complicated to do it yourself instead of through a broker. I feel a broker would actually make things more complicated, as it's an unnecessary middle man.

The only reason I can see people applying to multiple banks, is if their application has been rejected. Presumably there's a reason it was rejected - in which case a broker might be able to help.

But for a straight forward application where there are no issues (such as the OP), I don't see the need to go through a broker.

Someone needing an exemption might want to try a few different banks too, they may accept a higher rate if an exemption was granted etc.

woodchuck

Thatcher Jolly Goalpost wrote: »

Someone needing an exemption might want to try a few different banks too, they may accept a higher rate if an exemption was granted etc.

True.

But the OP already has approval in principle and seems happy with the rates. It seems completely pointless for them to use a broker at this point.