# To use a mortgage broker or not to use a mortgage broker, that is the question



## cbyr1983 (27 Aug 2011)

As per title, simple really.


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## Stephen_Red (29 Aug 2011)

I am a mortgage broker and so am 100% biased but I'll give you my two cents worth,

Advantages of using a mortgage broker,

- broker can offer you wider range of options
- going direct restricts your options, both in terms of rates and criteria
- a broker can give you a better chance of getting a mortgage in the future if you cannot get one now. This can be done by keeping your application informal until ready. If declined directly by a bank, you could be forever on their unforgiving database.
- most mortgage brokers will offer a more competitive deal on your insurance too
- a broker will package and present your application properly to give you the best chance with our (Irish citizens) banks miserly mortgage underwriters
- a broker will manage your application from start to finish, going above and beyond to make sure your application is processed in the most efficient mannor, eg chasing the mortgage lender and your solicitor at least every 48 hours, keeping you up to date at all times
- brokers can save you time. No need for you to spend time working out what banks will and won't do and who has the best rates

Disadvantages of using a mortgage broker

- most reputable mortgage brokers will charge a fee for their service
- brokers cannot offer 100% whole of Market service as BOI, Ulster and NIB do not accept broker applications
- some brokers only deal with one or two lenders. Make sure you find one who deals with at least five
- as I said before I am 100% biased but honestly can't think of any other disadvantages


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## theonlywayis (30 Aug 2011)

I am not a mortgage broker, but I have always used the a broker (the same one), who was recommended to me and whom I have recommended to friends and they have since recommended to their friends! So my advice would be if you have friends/family in your area that can recommend someone that they got good deals through and whom they thought highly of, whats the harm of making an appointment and seeing what they have to say.


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## irishlinks (30 Aug 2011)

theonlywayis said:


> I am not a mortgage broker, but I have always used the a broker (the same one), who was recommended to me and whom I have recommended to friends and they have since recommended to their friends! So my advice would be if you have friends/family in your area that can recommend someone that they got good deals through and whom they thought highly of, whats the harm of making an appointment and seeing what they have to say.



Just out of interest - if you don't mind -  can you tell us what deal(s)your broker got for you ?


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## CharlieR (31 Aug 2011)

From my dealings recently with three different brokers they will only deal with you if it worth their while and looks like an easy deal.

They are from my experience completely different from the UK ones who dealt with all banks.


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## irishlinks (31 Aug 2011)

Stephen_Red said:


> I am a mortgage broker and so am 100% biased but I'll give you my two cents worth,
> 
> Advantages of using a mortgage broker,
> 
> ...



Those disadvantages completely contradict and make void the first two "advanatages".
  A broker can hardly  offer you a wider range of options if they can't offer products from at least 3 lenders.


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## serotoninsid (31 Aug 2011)

Stephen_Red said:


> brokers cannot offer 100% whole of Market service as BOI, Ulster and NIB do not accept broker applications


Didn't realise this was the case.  Got my original mortgage via a broker with UB back in 2005 ...but clearly, this is one of many things that have changed between then and now...
Of those left, is there a possibility that whilst they officially accept business via brokers, they are less inclined to take the business in preference to business that comes directly through their doors??


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## wbbs (31 Aug 2011)

They would take the business alright but the broker won't get commission so therefore your application won't be sent to those banks.


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## serotoninsid (31 Aug 2011)

wbbs said:


> They would take the business alright but the broker won't get commission so therefore your application won't be sent to those banks.


NO - I mean in the case of the banks that do still deal with brokers.  As an example, suppose a bank has X amount allocated to lend for 1 month.  If they have sufficient customers for such lending that have come through their own doors, will these get priority over those that are applying via a broker?


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## Dave Vanian (31 Aug 2011)

serotoninsid said:


> NO - I mean in the case of the banks that do still deal with brokers. As an example, suppose a bank has X amount allocated to lend for 1 month. If they have sufficient customers for such lending that have come through their own doors, will these get priority over those that are applying via a broker?


 
No idea, but if that was the case, I'd say it would be a big secret.  I doubt if they'd admit it.


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## NorfBank (31 Aug 2011)

serotoninsid said:


> If they have sufficient customers for such lending that have come through their own doors, will these get priority over those that are applying via a broker?



No, I have gotten approval for customers from a certain bank who had been declined when they went direct.

As for broker v bank, the discussion/argument gets tiresome. If you are financially literate, have the time and don't mind doing the legwork then go direct, if you hate financial matters (then you're hardly on here) , are too busy and want somebody else to do the legwork then use a broker.

Brokers don't deal with NIB, Ulster Bank. 
They don't deal with Bank of Ireland or EBS directly, they use the broker arms where the interest rates may be higher but so might approval amount. 

Generally it is so difficult to get finance that rates are not as important as they used to be, it is just about getting approval. Somewhere.

_now back to TRANSFER DEADLINE DAY...Arteta and Benayoun. Get in!_


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## wbbs (1 Sep 2011)

Sorry, misunderstood you.  No, there is no priority for direct or broker business or rather there has not been in the past when banks could access funds for lending so there never was a limit as such.  Not sure if the shortage of cash has changed that, doubt it though.


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## theonlywayis (1 Sep 2011)

irishlinks said:


> Just out of interest - if you don't mind -  can you tell us what deal(s)your broker got for you ?



What I found from explaining what I wanted that he was able to access more mortgage options with more [FONT=&quot]convenient[/FONT] fix term rates that I was either unable to access or had not had success finding on my own - What I found with mortgages, is its like car insurance, it pays to shop around and change it every few years, otherwise you loose out. Hope that helps.


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## thedaras (2 Sep 2011)

Can anyone tell me,what happens if you change banks very soon after getting a mortgage from them ,having used a broker?

Does the broker still get the commission from the bank?


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## NorfBank (2 Sep 2011)

thedaras said:


> Can anyone tell me,what happens if you change banks very soon after getting a mortgage from them ,having used a broker?
> 
> Does the broker still get the commission from the bank?



There will be a clawback of commission from the broker, generally on a pro rata basis over 36 months so if you switch after 6 months.

30/36 x commission will be clawed back.

If you use the same broker to do the switch then they will get paid by the new lender assuming the new lender uses brokers.


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## cbyr1983 (13 Sep 2011)

Thank you all. I have started a mortgage application directly with my regular bank. Saves in terms of paperwork I suppose at the very least. From review they appear to have some of best rates available at present.

The fee the broker might make me liable for put me off to be honest - I have some time to play with.


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## csirl (13 Sep 2011)

> - broker can offer you wider range of options
> - going direct restricts your options, both in terms of rates and criteria


 
This doesnt make sense. 

When you go into your local supermarket, you dont see e.g. 'we only sell this item to caterers' signs on some of the products - the supermarket will sell you any product on its shelves that you want to buy and can afford. Likewise, a bank will sell you any mortgage product in its range that you want to buy and can afford.


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## serotoninsid (13 Sep 2011)

cbyr1983 said:


> The fee the broker might make me liable for put me off to be honest - I have some time to play with.


What fee?


			
				csirl said:
			
		

> Likewise, a bank will sell you any mortgage product in its range that you want to buy and can afford.


You would think so - but when shopping for a mortgage back in '05, the broker could offer me a better rate than the bank directly! ...go figure...


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## cbyr1983 (14 Sep 2011)

serotoninsid said:


> What fee?
> You would think so - but when shopping for a mortgage back in '05, the broker could offer me a better rate than the bank directly! ...go figure...


 

Fee suggested up to €500, so if, say, I let him do some work but then I got a better offer directly from another bank he couldn't work with, he'd look to charge me the fee.


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## Ladder22 (2 Nov 2011)

Stephen_Red said:


> - most reputable mortgage brokers will charge a fee for their service



I spoke with a mortgage broker recently who told me that she wouldn't need to charge me a fee if I used her service, as I had a current loan offer from a bank I had applied to directly. 

Should I be concerned?


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