Choosing a mortgage

[themom]

Hi

Im new here and really hope that ye can help me!

My husband and I are hoping to get a mortgage to build a house.I have been in touch with a broker and am going to meet one of their reps this week.

However,now I am thinking maybe we shouldnt.If they do the legwork and we choose not to go with them will they charge us?
What is the best lender to approach at the moment for a mortgage?

I have read some of the other threads on this but as I am new to this i need to be spoken to like a 4 year old!

Thanks in advance!

 

[Munsterdude]

Hi,
I am a broker. Your broker shouldnt charge you for their service, as normally they recieve a finders fee from the bank that you place your mortgage with. Its generally a fee of 1% (with one or two exceptions)
Of course you dont have to use a broker at all. You are free to shop around yourself, and contact all the banks directly, and from what you learn, you can proceed and deal directly yourself with that bank. Your choice entirely.
As I broker, naturally i believe the broker route offers you several advantages:
1) Product knowledge - a good broker will have an excellent knowledge of all the various products available in the market - they should be able to make a specific recommmendation to you, when they have all your financial info together. This will save time for you. You have to go learn/investigate all the various products that all the banks offer.
2) Packaging - a good broker will present the relevant information that a bank require in a well presented aplication. I beleive that a broker will do this better, in the majority of cases that a customer on their own will manage. This is more difficult than some on this website will acknowledge.
3) Pricing - a good broker will be able to recommend the best value mortgage based on your particular set of circumstances. Headline rates listed by various banks are generally not the whole story! It is helpful to be guided through this sometimes complex issue.
4) Time/effort. Probably one of the biggest reasons for choosing to go the broker route. You deal with one person, and submit one set of documents - the broker deals with all the banks. Less time consuming for the customer.
5) Tight/difficult cases - sometimes a well presented aplication from a broker may get approval on a case that might be declined via direct contact with a customer.

I wont bother listing any of the disadvantages of dealing with a broker - plenty who contribute to this site will chip in!!!