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.