any point in using a broker?

B

bobo

Registered User
Messages
90
As far as I can see the mortgage broker i used is a bit of a con (I M Corp). They explicitly said they represent about 9 or so lenders in the market but would likely give quotes from about 4 or so. Fair enough but when the broker from IMC processed our documentation they came back with a quote from ONE lender which he was tring to push hard - this leads me to think that they are totally not acting in our favour, only their own. I have no doubt in my mind that they are on commission or are trying to meet sales targets with particular lenders. When I asked for quotes from other lenders I was given a bull*hit answer citing our less than perfect financial position but excellent education and prospects which mortgage lender X particularly appealed to but others wouldn't. To my mind this was crap talk.
Am I better evaluating the lenders myself and brokering my own mortgage deal or is there such a thing as a mortgage lender that does not have their own vested interests and will act independently of all lenders? I predict the answer is no?
 
Yes mortgage brokers are on commision but there are worth every cent they it. After buying many properties over the years and dealing direct with the banks and then dealing with mortgage brokers from my experence i would never again deal direct with a bank its just too much hassel. The brokers do all the work INCLUDING THE HEADWRECKING PAPERWORK. My advice is go with the broker
 
lopin10 I could not agree more.
I own a fairly decent portfolio of property all done through a broker.
Our current purchase resulted in a mortgage offer document that included ridiculous security demands on the mortgage from the bank in question.
I discussed same with our broker and he negotiated a serious reduction in security assignment and life cover which I estimate will save us 20k over the mortgage term.
By the way over the last few deals I have noticed the banks are increasing security requirements. Broker says same also.
I would not waste my time dealing with bank direct as my time is worth more than that and would wholeheartedly recommend any serious property investor to develop a relationship with a broker/advisor especially as broker refunds the commission in excess of their hourly rate.
 
I agree markowitzman. If you have a problem at least the mortgage broker can find the best way to deal with it. An example i recently closed a deal in Tenerife and dealth direct with the banks it was so much hassel for me i was thiking off calling of the deal. I should have given the business to a broker and i would not have to ao through the problems i had. By the way im not a mortgaege broker im just sharing my experences of both sides of the story
 
Is there any reasons for not going with a broker (other than the original reason i outlined)?
 
The job of a broker is analyse your situstion and to know which lender is most likely to give you the mortgage you require on the best terms and how to best present your case if it's not 100% straightforward, is the case you have outlined. It would be a huge waste of the brokers (and lenders) time to adopt a scattergun approach and simply submit your application to all 9 lenders simultaneously. All of the major brokers will be getting the same 1% (0.9% from Bank of Scotland) commission from all the lenders they deal with by dint of the volumes they are placing with each lender so commission will (should) not be a consideration. (A smaller broker may only be on 0.25%/0.5% until they are regularly producing a certain level of business.)

If you are not happy with the lender that IMC are recommending ask for the precise reasons why they are using the lender and the reponses they have had from the other lenders they have discussed your case with.

Sarah

www.rea.ie
 
You must log in or register to reply here.
Back
Top