Mortgage Broker versus no broker

Familyman77

Registered User
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Hi all, this might seem a simple query but I'm wondering is there advantages to using a broker and is it a better option. In on 3.15% svr with aib and looking to change rate after the redress scheme ( this will push me below 50% ltv )
 
Hi,
I would say that there's no disadvantages to using a *good* broker. They can be beneficial in marginal / complex cases as they can present the case better than an application form allows, but for a straight forward application where you already know which bank / rate you want, there's no benefit using one.

Brokers are paid by commission from the bank when you drawdown, but I've heard of certain brokers looking for a deposit that's repayable to you if you draw down a mortgage that they arrange.

The reason I said a *good* broker, is because it's an extra middleman in the communications. If you've a disinterested broker, there can be a delay in getting documents back & forth, but I've only heard it in cases where the broker didn't think there was ever going to be a mortgage approved / drawn.
 
Thanks Red Onion. I've been with AIB from the start and both mine and my wifes accounts are with AIB ( accounts fees refunded then due to mortgage being with them ) so I'd be one of those that wouldn't be too interested in changing and swapping accounts etc. Think I will just wait for the redress then change to the lower LTV rate
 
I’ve a difficult case so if someone would recommend a broker that they have used themselves, or if you are an AAM regular, please let me know.
 
I consider myself reasonably savvy but used a broker and found him great. What’s there not to like? Someone else pays them and instead of joining the “computer says no” queue for the masses your broker can flag issues or tease them out with the mortgage firm’s broker consultant. I genuinely struggle to see the downside once you get a good one via word of mouth.
 
Given that banks pay brokers a commission of 1% of the mortgage, in a straightforward case would the bank be more accommodating to a personal application for a €300k mortgage ? the bank would save themselves €3k.

A young couple known to me, first time buyers, €90k joint income, no kids, secure jobs, saving history and €60k deposit. Looking for a €300k mortgage to buy a house for €350k.

This couple went to a broker who deals with all the main lenders and are being told BOI are their best option, cash back etc. BOI are not cheap particularly on their variable rate. They will probably go for a variable rate so AIB seems far more attractive, their fixed rates are also at least reasonable.

Why in this case would the broker push a BOI mortgage ?

All brokers say they get 1% commission from lenders, is this a minimum ? do they get more from some lenders or bonuses for hitting targets etc ?

I think this couple should try AIB themselves or go to another broker.
 
My experience may not be relevant anymore, but as a FTB in 2005 I decided to go to a broker and the banks individually. There were a lot of loss-leader deals at the time. Extremely low interest rates for the first couple of years, and other sweeteners. I wasn’t interested in these. I knew what I wanted. A tracker with a low interest rate from year 0 to year 30.

I went with BOI, rate was ECB+1%. This was the best I could find and I found it myself. There was a lot of leg-work involved, cycling to/from Ranelagh/Rathmines/Dundrum/etc during lunch break.

A number of my colleagues were buying at the same time. They all had lower rates, e.g. ECB+0.25% for the first two years, rising to >ECB+2% thereafter.

Don’t forget that the broker isn’t “free”. He/she is being paid by someone, and ergo, he/she is working for that someone.
If you want a totally independent broker, pay him/her yourself.
 
I’ve a difficult case so if someone would recommend a broker that they have used themselves, or if you are an AAM regular, please let me know.

Gerry Hiney of Park Financial he really knows his stuff.

A good broker is worth his weight in gold if your case is anything but straight forward. They know the different approaches that different banks take, which ones have slightly different criteria, who will take bonus payments as income and how much. What way to word an application. This besides knowing who has the best rates to save you shopping around.

If the OP is going to stay with AIB, a broker won't do much for you. They get paid for new business.

Steven
www.bluewaterfp.ie
 
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