Mortgage broker or go it alone?

Heffc

Hi all,

My husband and I are just about to embark on the mortgage application process. I've spoken a broker who deals with four banks (aib haven, boi ics, kbc and ptsb). They are charging 195 for the application fee and a further 300 if we complete the process.

I know there is a lot of paper work these days and I'm wondering if we're better just going with a broker and letting them do all the chasing, in which case I'd be interested to know if this fee is standard (we're in Dublin).

Or are we better to just get all our paper work together and go to each of the banks ourselves? If we go it alone, in terms of providing our banks statements, do we need originals or will photocopies do? I'm just thinking in terms of making several applications ourselves and therefore need several copies of everything.

thanks for any advice.

the_syco

Heffc wrote: »

My husband and I are just about to embark on the mortgage application process. I've spoken a broker who deals with four banks (aib haven, boi ics, kbc and ptsb). They are charging 195 for the application fee and a further 300 if we complete the process.

I know there is a lot of paper work these days and I'm wondering if we're better just going with a broker and letting them do all the chasing, in which case I'd be interested to know if this fee is standard (we're in Dublin).

See how much they can save you. Less mortgage and less stress could be a win-win situation?

DavyD_83

For the broker we went through there was a €500 security deposit we paid when we started the process, with the understanding it would be returned when mortgage was secured as the banks pay brokers a finder's fee.
The deposit was there just to ensure we didn't take all advice and then walk away for no reason; there were agreed circumstances where it would be fine to walk and get our deposit back. This was all explaijned on our first meeting with the broker.

As far as I am aware this is standard practice; so the use of the broker should not actually cost the applicant anything.
Not all banks deal with brokers, so the above only applies in the case of certain banks (i believe it is the 4 you have listed); if the broker secures a mortgage for you with a bank outside this list (eg. Ulster Bank) they may request to keep the deposit as payment for services.

ted1

I didn't bother with a broker. i just phoned my bank and applied over the phone.

AIB ad the best rates so there was no need to go elsewhere.

can the broker get you better than advertised rates?

Heffc

My impression from reading other threads is that there can be a lot of leg work involved and applications and that its easier to let a broker do the hard work. I'm not sure about if they'll manage to get us more money or better rates, probably not likely I'd imagine??

strandroad

It's a lot of paperwork and even you go with one bank a broker can help you to get it all in order so there is no back and forth, and to estimate if you'll qualify for the amount you need.
killers1 here on boards is a truly excellent broker who will not charge you anything as his commission comes from the bank (happy clients here as you may guess).

Bigcheeze

Heffc wrote: »

My impression from reading other threads is that there can be a lot of leg work involved and applications and that its easier to let a broker do the hard work. I'm not sure about if they'll manage to get us more money or better rates, probably not likely I'd imagine??

The legwork is mostly getting bank statements, loan statements, salary certs.

Broker doesn't do any of this for you.

Broker can add some value if your circumstances are marginal for approval or are self employed.

They're probably useful for people who are clueless about filling in forms or daunted by the prospect of dealing with a bank.

The other risk with a broker is they can impose a fee for lost commission if mortgage is repaid in first 3 years.

jester77

I went with a broker when I got my mortgage (actually had 3 different ones looking into it). It might be a little different here in Germany, but he didn't cost anything as he get's paid commission by the bank he brings the business to. I knew the guy from beforehand and he has some really good contacts so got us a very good deal compared to the other brokers.

But the best reason for going with a broker was because he knows the internal workings of how mortgage rates are handled, not something the average guy knows. He knew how much cash we had to throw at a deposit, and where the various cut off points are for bringing the interest rates down. We didn't use all our cash in the end as a deposit, just what was needed to get us into the relevant band for bringing down the interest rate. The rest of the cash we used for getting stuff for the house.

Trish56

Not all brokers charge fees. A broker will be familiar with the credit policy and criteria to qualify for mortgage with all the lenders and therefore will be in a position to get you the best rate and highest amount. A good broker will save you a lot of time and stress and will help you complete forms etc. Brokers also have access to all the Life companies and will source the cheapest mortgage protection policy for you while the bank will only offer their own product.

ted1

Heffc wrote: »

My impression from reading other threads is that there can be a lot of leg work involved and applications and that its easier to let a broker do the hard work. I'm not sure about if they'll manage to get us more money or better rates, probably not likely I'd imagine??

For me there was very little work, AIB has all my details already.

I literally had very little work to do, other than get my salary cert signed by my work.

with regards life assurance, I was able to get a better deal than brokers as going direct meant the same rate but got 10 months back after my policy was 13 months old

Heffc

Sounds like I need to find a broker so who takes the commission from the bank and not me!

techdiver

Heffc wrote: »

Sounds like I need to find a broker so who takes the commission from the bank and not me!

Contact killers1 here on boards. He has dealt with many mortgage applications including mine and charges no fee. It has been a painless process from start to finish with him. He is always available to answer questions and will do all the "heavy lifting" for you.

There is even a thread in his honour!

http://www.boards.ie/vbulletin/showthread.php?p=81901811

chris85

techdiver wrote: »

Contact killers1 here on boards. He has dealt with many mortgage applications including mine and charges no fee. It has been a painless process from start to finish with him. He is always available to answer questions and will do all the "heavy lifting" for you.

There is even a thread in his honour!

http://www.boards.ie/vbulletin/showthread.php?p=81901811

Would recommend too. Was simple process to get approved. Finding the house is the hard thing.

Arbiter of Good Taste

I would definitely go with a broker. From the fees you mention, I suspect you got the quote from the same broker that I used last year who were EXCELLENT. Alternatively, a lot of people on here also recommend killers1.

As far as I am concerned the real value is around the time you are drawing down the mortgage. A good broker will know exactly what you need to do and will kick the banks a$$ to get everything over the line.

That €500 was the best money I ever spent. It made the mortgage process virtually stress free for me.

dar100

The paper work is stuff the broker cannot do for you, payslips, letters off boss, saving accounts etc. It is actually not that much work. I've just completed it, took only a few days for me to do it myself

o1s1n

chris85 wrote: »

Would recommend too. Was simple process to get approved. Finding the house is the hard thing.

Another recommendation from me. An absolute pleasure deal with. Took a lot of stress out of the process.

Eganmt

Hi,
Could someone please send me on contact details for Killers 1. I have found a house but because I took out a small personal loan since my initial mortgage approval in principle my bank are not willing to loan the amount I require. I am hoping Killers 1 can help, he has certainly earned glowing reviews from others.
Many thanks.

TanD

We've just been through the same process and we chose to go the Broker route, I couldn't recommend the guy we used enough. There is a lot involved with paper work and questions from the bank and the Mortgage Broker dealt with all of it. For us it was well worth the money. We were charged €300 in total, €100 at the start of the application and €200 upon completion and draw down of the cheque. PM me if you would like details.

Hope this helps.

Zamboni

Mortgage brokers can be useful if you are not financially literate or just plain lazy.
Taking on a mortgage is a big part of one's life. Better to DIY - research, learn and understand all the various inherent complexities imo.
I know plenty of people who are stumped when I ask them what type of interest rate they currently have on the their mortgage. Pathetic really.

chris85

Zamboni wrote: »

Mortgage brokers can be useful if you are not financially literate or just plain lazy.
Taking on a mortgage is a big part of one's life. Better to DIY - research, learn and understand all the various inherent complexities imo.
I know plenty of people who are stumped when I ask them what type of interest rate they currently have on the their mortgage. Pathetic really.

Bad assumption. I am going through a broker despite not being lazy about it or financially illiterate, I actually keep very much on top of whats happening in the property market and good knowledge of banking regs and all that. I want a broker because I wanted to get approval from a few lenders to have choice on rates and I dont have the time to put a number of separate applications in as I work normal hours and hard to meet with banks and get applications in.

TheDriver

I didn't realize any brokers charge fees?? I thought the fees were based on commission from the banks.....

anniehoo

I used a broker too as I was getting a mortgage by myself and pretty clueless. My guy was fantastic (Dublin based) and while I could have probably done it myself he took a lot of the stress out of it for me. PM for info (not sure if I can post names on thread).

He got paid via the bank so it didn't cost me anything at the time (2007).

MizMix

Interesting topic I always assumed you'd get a better deal going direct to the bank especially in this market. So if I got a mortgage through AIB for instance - the rate would be no higher going through a broker than direct with AIB?
So the bank pays commission to the broker but they don't pass that on through a higher rate to the final customer? Just trying to figure how it works- a relative is a broker and while I'd love to give them the business I don't want to feel tied after an initial chat and end up paying more than I would direct

Bigcheeze

MizMix wrote: »

Interesting topic I always assumed you'd get a better deal going direct to the bank especially in this market. So if I got a mortgage through AIB for instance - the rate would be no higher going through a broker than direct with AIB?
So the bank pays commission to the broker but they don't pass that on through a higher rate to the final customer? Just trying to figure how it works- a relative is a broker and while I'd love to give them the business I don't want to feel tied after an initial chat and end up paying more than I would direct

You pay the same interest rates to the bank as someone going direct.