Mortgage Brokers. Good or Bad?

D1stant

I am close to buying and have been in touch with a well known broker

Their services are approx 500 Euro, but they have just sent me about 7 different mortgage application forms from the various lenders

Now if these guys are going to get me a good deal and remove hassle I have no problem with the fee

If there merely going to make me jump through all the hoops, and tell me which is the best one, I dont really see the value

Also I hear gossip about some lenders giving brokers back handers etc

Any advice appreciated

DublinDilbert

One of the advantages of using a broker is that you don't have to fill out 7 different forms! I've received conflicting reports about brokers who you pay a fee too, some say they should be paid by the institution that you get the mortgage from.

I think in celtic tiger ireland the commission the brokers were getting from the banks (combined with the number of applications) was enough to make a living from, but not any more.

I would say if a broker is going to do some of the leg work, give good independent advice on which product is for you and help move the process along its might be worth the fee. You can apply directly to all of the banks anyway, and after you apply to one you'll know what info they all typically want, so you can walk in with that all prepared...

D3PO

lots of brokers dont charge you as they get paid a percentage of the drawdown from the banks.

Id tell the broker to F Off and go to a different broker.

D3PO

DublinDilbert wrote: »

I think in celtic tiger ireland the commission the brokers were getting from the banks (combined with the number of applications) was enough to make a living from, but not any more.

QUOTE]


This clearly isnt true. IMB & Mason FS for example still charge no fee. If they can do it clearly they can still make enough from drawdowns.

DublinDilbert

D3PO wrote: »

DublinDilbert wrote: »

I think in celtic tiger ireland the commission the brokers were getting from the banks (combined with the number of applications) was enough to make a living from, but not any more.

QUOTE]


This clearly isnt true. IMB & Mason FS for example still charge no fee. If they can do it clearly they can still make enough from drawdowns.

Sorry i think you took me up wrong. I never said every broker charges a fee, some do & some don't. My observation is that more of them seem to be charging a fee now, than before.

donalg1

Dont bother with a Broker there is nothing they do that you cant do yourself, besides anything you are not sure of can be answered on Boards anyway

irishguy

Do brokers get special discounted rates for you or do they just look up the best rates and give you advice?

variety

D1stant wrote: »

Also I hear gossip about some lenders giving brokers back handers

I'd take that with a pinch of salt. The lenders don't have any money, even to genuine clients, so there is no reason for them to be giving out any incentives to people who can't return the favour with business.

You should be aware, however, that if a Broker is charging a fee they are STILL receiving commission once your mortgage draws down.
It'll be nowhere near the celtic tiger years' commission, though, even with your fees added on top.

There are two main reasons (other than what DublinDilbert said: so you don't have to fill out all the application forms!) for going to a broker is that the good ones will have relationships with underwriters that they have established over the years. Bad applications drive underwriters insane and they are less inclined to investigate an application and will simply decline it out of hand.

You must get a good broker for this, though. Get recommendations from friends who struggled to get a mortgage approved and then a broker managed to do it for them.

The second reason is so that, if the banks increase their rates, a broker will usually have taken your application to the same stage with each bank, and can easily submit the necessary documentation to a bank who then has the more favourable rate (if that's important to you, of course - it's not to everyone).

D1stant

Thanks for the replies

In the end I got up off my expanding arse and did a little leg work. All silly metaphors for internet research:)

Seems thats really quite easy in terms of mortgages, as most institutions have accurate mortgage calculators, clear terms and good phone support

The winner was an oldie. One of our own dearly bailed. Going direct with them. If they go under maybe my mortgage will be forgiven :cool:

BillieB

I used a broker and there was no charge. They get a commision from the bank so no way would I go with one that charged u.