Going to bank before broker - hurting future chances?

Why the need of a broker?

I got my first mortgage directly from a bank and my second mortgage from a broker. I had good experiences with both, but the broker was able to get me an exception whereas the banks wouldn't consider it.

So based on that alone, if you are looking to borrow the max possible, I would recommend holding off until the time is ready to go with a broker.

Obviously everyone's situation is different, but my broker pretty much guaranteed me an exception from day 1 so that's why I chose to go with them. I really think it depends on your advisor in terms of the service that you get overall.

My friend had a terrible experience with 1 bank in particular, not sure if I can name them here.

It won't hurt your chances at all.

Just on the own bank versus others - I actually had a terrible experience applying with my own bank for a mortgage. Their calculations as to what I'd saved on average each month was well off and wouldn't accept any explanation (there was €10k moved from savings to pay the booking deposit on house & they calculated on the savings amount *after* this had left the account). The other bank I applied with understood this and could see the transaction and receipt for the refundable deposit. Yes it was annoying providing all the documentation but much more straightforward.

For those asking why use a broker - it obviously depends on personal circumstances but it worked for us. We needed an exemption on the 10% / 20% deposit rule in place at the time, so made an appointment to see a mortgage manager at our bank, PTSB. The mortgage manager told us there is no such thing as an exemption; with them or any other bank. I offered to show him a link to articles written about them, but he was adamant they didnt exist, and couldnt be given.

Fast forward 3 months, we drew down on a mortgage with an exemption from PTSB, with them paying the broker for the priviledge of giving them business they'd already turned away.

The broker also did a thorough review of our statements, and pre-empted any questions on certain transactions from the bank with written answers. Maybe they would never have asked, but I think it helped.

Askthe EA wrote: »

They can see your account history so less paperwork required.

Only if they're your own bank. I went with a bank that I've had no prior dealings with and had to provide everything.

Sebastian Dangerfield wrote: »

For those asking why use a broker - it obviously depends on personal circumstances but it worked for us. We needed an exemption on the 10% / 20% deposit rule in place at the time, so made an appointment to see a mortgage manager at our bank, PTSB. The mortgage manager told us there is no such thing as an exemption; with them or any other bank. I offered to show him a link to articles written about them, but he was adamant they didnt exist, and couldnt be given.

That's really odd - we got an exemption similar to yours going direct to Bank of Ireland. There was no problem at all once we'd provided all the information to them in terms of getting it.

Askthe EA wrote: »

They can see your account history so less paperwork required.

If it is your own bank. Why only go to one bank?

The whole process is quicker with a broker as they already have the relationships with the underwriters.

There is no real disadvantage tbh.

Askthe EA wrote: »

This! A broker knows how to iron out any likely bumps in the road to get you the house you want. A bank doesn't care, they'll just say no.

That’s fair enough especially for some of those out there struggling to get the mortgage they want.

Cypher_sounds wrote: »

Maybe they have worked out that they prefer the mortgage offer/ interest rate with their own bank?

Does a broker not cost money?

The Broker will get the same offer and probably quicker, he will also get all the other offers.

Doesn't cost a penny to you.

I went through a broker recently... he came back with an offer from KBC. I was after a mortgage from Ulster Bank, he told me that they were delaying & KBC's rates were far superior (they were not). I contacted Ulster Bnk Directly & was told that they had recieved no application on my behalf... Broker then sent me a bill in order to proceed with KBC... I went direct to the bank in the end. Broker process was no easier than going direct, each bank has it's ideocyncrasies & the broker can't bypass them. + going direct to banks means you can avoid dealing with cowboys.

I went with a broker because I wanted AIP from all lenders in case of rate changes during purchasing and going through the process 5 or 6 times would have been a nightmare.

In the end it worked out, as during the purchase Ulster dropped their 2.6% rate which we availed of. Before that KBC was the lender of choice.

jimmycrackcorm wrote: »

If you fill the criteria the banks require then going direct is best. I.e. good deposit, savings record and 3.5 x income.

Why?! That is just not true, show your work!

awec wrote: »

Broker is a waste of time and an unnecessary middle man unless you know you are going to have issues if you go directly to a bank. If your income is low, you have high debts, are on a temporary contract or whatever, that is when a broker is useful.

Otherwise, just go to the bank. A broker will not get you anything you cannot otherwise get yourself, and they are certainly not faster than going direct.

It is faster to go with a broker if you are going to multiple banks (you should be). What about the effort and cost of making 5 copies of all of your docs for different banks instead of just one? The broker can make sure all the info you need is complete and save you that back and forth with the bank?

There is NO negative to going with a broker. You can argue it's the same, you can't argue it's worse.