Worth getting a broker when switching mortgages?

VonLuck

I'm about three quarters of the way through a fixed term mortgage and I know I can get a much better deal with another bank. I think with the couple of grand places are offering to switch, this can cover solicitor, survey and breakage fees, although I'm not 100% sure what the latter would be.

A friend of mine suggested to go to a broker to handle everything. Is he right that it's the better option than doing it myself? I'm not sure how a broker makes their money, but if he can get me the best deal without costing me anything more and he deals with the paperwork then all the better. I'm just not sure what the catch is! Any thoughts?

notAMember

I've switched mortgages 7 or 8 times... I rely on my own calculations, and a very competent solicitor. Never used a broker for any mortgage, as all the information is available in the public domain and I'm a straightforward financial case. (PAYE with a good credit history). If you're a more complicated case, have a rocky credit score, or are self employed, or just are not confident with numbers, then use a broker. A broker makes their money from a commission with the bank usually.

Fixed term breakage fee is available on request from your mortgage supplier. Before you engage any other service, get this number to check it makes sense to consider the break.

dubal

Some financial institutions only use brokers, you cannot access them without one.

LapsypaCork

Snap, we’re in the exact same position as you, tried to do the ground work ourselves but getting bogged down with all the information, plus, our current providers were really misleading us every time we approached them. We rang a local broker who told us there was no point in switching and then I contacted another financial service through work. Within an hour she had loads of information, explained everything and is getting us a way better switch rate than we’d have gotten ourselves. As stated above, if your good at numbers, belt away yourself but I’m happy I called that financial advisor.

Brego888

Personal preference obviously. I used a broker on my very first mortgage as I was doing it alone and didn't really trust myself. Since then I don't see the need though as I understand the process and know what is and isn't a good deal. Bought next house and a couple of mortgage switches since without a broker.

VonLuck

So I'm happy enough with the figures i.e. that I will be getting a better deal by switching, but how do I actually proceed with it? I rang my bank about the breakage fee and they wanted to send me out a switching pack but that the breakage fee quote would only last for 10 days. I didn't know whether I needed to approach the other bank first, or if I should be doing it all through my solicitor.

Is there a straight-forward guide to switching out there that I can follow?

I used a broker to get my mortgage and also used one to switch and I definitely recommend it.

They make their money as commission from the bank you take your mortgage from. They should get the same commission from each bank, meaning no conflict of interest or pushing you one way or the other.

https://www.boards.ie/discussion/comment/118719079#Comment_118719079

You just apply for the mortgage, when it comes to paying the breakage fee it should all go via your solicitor. It will probably be months before you draw down so the breakage fee will almost certainly be different at that stage. It is a deterministic value though, there is a formula they have to use to calculate it. My breakage fee dropped significantly between first requesting it from the bank and the time of actual draw-down, but your mileage may vary.

colm_c

Any recommendations for brokers?

VonLuck

I contacted a broker and he was pushing me to go for a 7 year fixed mortgage. I was keen on fixing for that long but he seemed insistent that it was the way to go. This is my inner cynic talking but would there be any reason he would be pushing this, such as a better brokerage fee for him? Just conscious that it may not be the best decision for me and he's only looking out for himself.

Wildly Boaring

Right now it's surely prudent to fix for as long as possible.

With inflation as it has been and the last few years of low to 0% ECB interest rate can only see interest rates go up.

dubal

https://www.boards.ie/discussion/comment/118729734#Comment_118729734

From my looking the best rates seem be for up to 7 years, with a slight increase after that

Dubal