Using a Mortgage Broker or Not??

Ex Flex Member

Hi All
Just want to get some thoughts on this.

When applying for a mortgage in these current economic times is it better to use a broker or not?

I work for a estate agents and there is a mortgage broker we use a fair bit and I approached them personally for a mortgage quote for my fiancee and myself.

I felt that in the current climate where banks arent exactly rushing to give out mortgages ,that the best way to get one was to approach a broker that I knew and who would already have a existing relationship with the banks . The brokers have a added incentive to get you a mortgage .The brokers have secured MIP from 3 banks.

However my fiancees family feel that its better to ignore a broker and just approach a bank direct.

I personally dont think that walking up "cold" to a bank and asking somebody that doesnt know you a mortgage(esp in the current climate) is going to be as effective as using a broker. This is also what ive been told in work.

The bank official almost certainly wont know u and while you may have all the necess docs , I think that having the additional benefit of a "reference" from a broker will make a huge difference.

What are the thoughts of other people ?

many thanks
efm

ntlbell

do both?

Enii

Use a mortgage broker!!!!

I used a mortgage broker for my first mortgage 8 years ago. Since then I have gone back to her to get a new mortgage and then to get a re-mortgage. I ring her every time I get a letter from the bank offering me new terms. She has never let me down and I have saved money by following her excellent advice!!!

Paulw

I used a mortgage broker, and they made the whole process so easy. I did try the direct approach to the banks, but the broker just made it all so simple and less complicated.

So, my view - use a broker.

irlrobins

I'd go direct. At the end of the day the bank will look at hard facts (salary, job security, debts, etc) to decide how much to lend you, not how well they know you.

Applying for approval in principle is straight forward, you just need to provide all the required documents (payslips, P60, proof of savings, etc). You'll have the same amount of paperwork to do regardless if you use a broker or not.

PrideandLuna

Myself and my partner used a broker and it made the whole process far more straight forward.

Adrift

I did both and got the better deal through the broker.

deeno1975

I had the same choice to make myself when I went for a Mortgage 4 months ago, I decided to approach the banks directly. I looked at the interest they were charging and picked the banks with the best rate (and banks that passed on interest reductions quickly). I also used the website itsyourmoney.ie to educate myself in terms of what to ask and look out for.

I then went to these banks, spoke to their mortgage advisers and learned alot in terms of what they offered. I then had to fill out the application forms (now that was the biggest pain) for the 4 banks I was looking at. Once I got the loan offers I then could easily compare what the best offer was and went with that bank.

Applying by myself was a bit of a pain, but really good in terms of what I learned and it also gave me a direct contact with the bank that I used to get the amount I required (the broker I spoke briefly with said that I would not be able to get that amount). Also be aware that some mortgage companies charge a fee for their services (they are not charities).

Hope that helps.