Mortgage Brokers

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Nemo

Guest
I am meeting a Mortgage Broker tonight. With the information and recommendations she makes, do I have to take out a mortgage with this broker or can I go directly to the Financial group she recommends.

What is the benefit of getting a mortgage through a Broker, if any?

Thanks,

Nemo.
 
Nemo said:
I am meeting a Mortgage Broker tonight. With the information and recommendations she makes, do I have to take out a mortgage with this broker or can I go directly to the Financial group she recommends.
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No and Yes. There is nothing to stop you going directly to the lender.
 
Make sure the broker is independent and deals with as large a list of lenders (preferably all) as possible.
 
Do please tell her that she is going to be giving up her Friday evening and that you are going to avail of her advice and expertise and then go directly to the lender to get exactly the same deal. I'm sure she will be delighted.

Sarah

www.rea.ie
 
Mortgage Brokers source the best rate that they can with their contacts.
If they are linked to 3 banks, they get you the best one they can for you from one of those three.
If they are linked to 15 banks, same theory...as far as I know.

I don't think you'll get a better deal than the one she offers...instead the bank pays her a commission for her sourcing them a new client (i.e. you).
I don't think it'll be an advanatge to go directly yourself.
I had a lady sourcing the best info for me in wexford. She was very helpful with required documents etc. I want to sell my house soon and build at home in wexford... I will use her services again.

She also sourced insurance(house and life) for me. But I would advise you do these yourself - I renewed my house insurance with a different company.
 
"Why - did she not get the best deal for you?"

Mortgage brokers may have agencies with most of the main lenders but may have a tied agency with a life company. (i.e. only deal with one life company)

Therefor the broker can possibly get you a good deal on the mortgage...but you would probably be better off shopping around for a better deal on the life cover.
 
We went to a broker and couldn't recommend him enough. Got his name off this site. He did all the hard work for us and gave us a cash back sum on what he got from the bank. He was brilliant!
 
Clubman.
the deal she got us was 510 for the first year (jun 05 - Jun 06)
This jumped to 650euro when the renewal came up. I felt it was too steep, and got a similar spec insurance deal on 123.ie for 298euro. Massive difference.
 
There are not really any extra benefits in going directly to the lending institution yourself - in fact the broker probably has contacts at the banks and can push the mortgage through if the multiples are tight.

There should be no cost to you for using a mortgage broker so if they want to charge a fee then don't use them. They are paid a percentage of the loan value from the institution (1% I think).
 
Is your motive in ditching the broker
¬ you don't want them getting commission and would prefer the bank to keep it when you deal with them direct
¬ do you think you'll get an even better deal yourself, once the broker has identified the top few
¬ have you heard some of the unhappy stories about a few brokers and thinking to yourself there's no way you want to get into bed with any of them?

You could still get the best deal with the broker, let them get the commission and deal direct with the bank in terms of documentation delivery and that way keep everyone happy.
 
DB74 said:
There are not really any extra benefits in going directly to the lending institution yourself - in fact the broker probably has contacts at the banks and can push the mortgage through if the multiples are tight.

There should be no cost to you for using a mortgage broker so if they want to charge a fee then don't use them. They are paid a percentage of the loan value from the institution (1% I think).
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This is simply not true in all cases.

AFAIK, National Irish Bank do not use Brokers to sell their Mortgage products, so no Broker can actually arrange a Loan for you with NIB at present, yet they constantly offer better deals than most other lenders for particular products.

If you use the services of a Broker, you should also check with NIB, to see of they can match or better whatever best offer your Broker can get.

IMHO, there is nothing wrong or underhanded in this, especially if you let the Broker know what you are doing.

Also, some Brokers do actually charge a fee for service, and then refund the bounty from the lender to the client, i.e. REA.

They will claim that this protects clients from unscrupulous brokers who may recommend a lender which pays the biggest bounty to the Broker, which may not necessarily be the best deal for the client. I would have a lot of sympathy for this model.
 
I think it depends on your LTV and your income/status. If you are a FTB looking 92-100% then its no advantage to use a broker as they have nothing to work with. Definately make sure that they deal with all lenders and get it in writing. If they dont deal with one or two then find exactly why they dont.

Dont go to just one try a few of them and see what happens. Make them work for their money.
 
If you are a FTB looking 92-100% then its no advantage to use a broker as they have nothing to work with
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I presume you mean in terms of getting a better interest rate, then theres no advantage in going with a broker, the same rates apply if you go direct or go via a broker. ( with the exception of NIB who do not deal with brokers) However in my experience as a mortgage broker the first and foremost priority for the majority of FTB re mortgagors and people trading up is the maximum amount they can get. using the services of a broker can in fact assist you getting a higher amount than going direct to the bank. Different banks have different lending criteria, a good broker will know which lender is likely to approve the highest amount based on each individuals circumstances. You are of course free to go direct to the lender upon the brokers advice, but a broker has the experience of packaging your application correctly. A lot of people get refused for mortgages simply because the application was not correctly packaged, and a broker will argue the positives of an application with an underwriter, something most individuals cannot do.
 
Molly said:
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theres no advantage in going with a broker, the same rates apply if you go direct or go via a broker. .
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Wouldnt agree 100% there - I am a broker and I have got clients rates below the advertised rates, through my relationships with the various banks. I can make the case on behalf of the client to get exceptions on rates for various reasons, such as particularly good LTV, or maybe good income levels
 
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