Mortgage Brokers -Commission from banks?

As several posters have said there is no difference in rate or T&C by going direct or going via a broker - it's just down to individual choice. Either the lender pays a broker commission or the lender cover their own costs of marketing, interviewing and processing the mortgage application to the underwriting stage.

Sarah

www.mortgagesoverseas.com
 
The brokers have never been able to match the rates that I have been able to get by going direct.

However, that is not to say a broker does not add value for some/most people.
 
South said:
The brokers have never been able to match the rates that I have been able to get by going direct.
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Do you not think that maybe you went to a poor broker? Because as a broker i have very, very rarely seen a client organise a better rate than I can
 
South - did you fall for the hugely discounted one year rate and ignore the more expensive rate you would be stuck on for the remainder of the mortgage.
 
I would have thought the same thing myself-I don't think that there is that much flexibility when it comes to mortgage rates.
 
It's a mortgage at the moment - LTV is close to 100%, 4.7% is the rate better than anything I had from brokers.
 
Sorry Munsterdude - not discussing my income.

Loan about 400k.
 
I'd agree with South - never been able to get a quote from a broker that was lower than what I could negotiate myself. Like South, I am also on a rate that is much lower than the advertised rate for the type of mortgage I have. Negotiated it directly face to face with bank. I dont want to go into any of my personal financial details, but it is not a discounted or any other sort of special offer mortgage where the rate goes up after the special offer period. It is a straight forward regular tracker at a set percentage above ECB for the duration of the mortgage - though the percentage is lower than advertised.

Brokers tend to be quoted the advertised rates and may be good at sifting through those rates. However, some banks are always willing to do a deal so long as they are still in profit overall. Bank Managers individual branches still have some power to offer lower rates on any product they are offering in order to retain valuable long term customers.

I dont think everyone gets the same treatment and I think it varies from branch to branch even within a chain. People who are not long term customers with good credit ratings will not get favours. Also, individual branches who are struggling with profit margins wont do favours.
 
P.S. I've worked in a financial job in the past & know my way around both the legal and financial terminology and I'm up to speed with the going rates.

However, negotiating directly is NOT for everyone. If you dont know what you are doing, many banks will see you coming & take the opportunity to take you for a ride - remember this is their business & they know it inside out. I've come across people who have been fleeced in direct negotiations.
 
it's not complicated if you want a tracker - it's simple.

I want a tracker mortgage with the lowest margin you can give me. followed by what is the apr on that?
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You'd be surprised about how little some people understand about these things - bit like the add on the TV "I dont know what a tracker mortgage is..".

I recently came across someone who chose which mortgage offer to go for solely on the basis of the amount of money on offer - chose the bank who would be theoretically prepared to offered the most money as thought this meant he was getting best deal. Had no idea what interest rate he was being charged and was totally unaware that the interest rate determined the repayments.
 
Marianne said:
Of course the customer ultimately pays for the commission that a lender pays the broker. It's factored into the interest rate that the lender charges. But the important thing is that if you don't go through a broker and deal with the lender directly, they simply keep that commission for themselves.
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Is this statement true in all cases?

Is it entirely coincidental that NIB can offer market-leading rates on their LTV product without the necessity to use brokers.

In other words, are they using funds that would normally go to brokers to actually offer a better rate to their customers.
 
Am I correct in assuming NIB do not deal with any brokers?

Therefore no broker can offer the best deal in the market?
 
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