Decision on Mortgage Broker - Help!

[airgead]

Hi, I'm hoping I can get some help here about Mortgage Brokers. Myself and my fiancé are currently in the process of buying a house. We have the deposit already between savings, gifts and a loan. We have a holding deposit on a property that we like. We are having a bit of a problem getting finance.

We decided to deal with a mortgage broker as I know one very very well and I know I can trust them. However, the loan offer we got through this broker was very unfavourable. It was an extremely high rate of interest - we will barely be able to make the repayments if we accept this.

We are also told that due to our financial situation that this is the only offer that we will get. I am not in my job very long although it is permanent, I have been in full-time employment before this job too, and my fiancé is trying to start up his own business but does not yet have any accounts to show for it. He does work on the side, earning about 400 euro a week, which obviously the banks won't look at because it is not declared yet until he fully sets up his business.

We know that we can pay a mortgage. We've gone to financial advisers who say that we can afford a mortgage.

Another broker, a cowboy if you ask me (but a friend of a friend), has advised us that yes this is a crazy rate of interest, and he will almost definately get us a better rate. My question is, can one broker get a better rate than another if they are dealing with the exact same lending institutions? There are not many lending institutions in the country. Is it possible that one broker may have more influence than another on a lending institution? I have never heard of this.

This is why I am seeking independant advice and I would really appreciate any relevant advice anyone can give. We are first-time buyers.

 

[OhPinchy]

go to some of the lending institutions directly - type up a draft email containing as much info as you can and ring them up and ask for a specific persons email address and send it to them and ask them to call you back with an offer when they have read it. If you don't have time to get round to all the banks this is a good route, but make sure you get the right person's email address.

Yes, I would say different brokers could get different rates from the same institution though I don't have evidence of this it makes sense that if broker A puts 100 customers a month the bank's way they give that broker a discount which they may pass onto the customer.

Due to your position the number of institutions that will lend to you will be limited but you shouldnt have to pay a premium to those that will lend to you so make sure you shop around. Plenty of posters here will recommend http://www.rea.ie and check out http://www.primafinance.ie - tell them the best deal you got and tell them if they match it and give you a conveyancing solicitor for €1 you'll go with them.

 

[ClubMan]

We decided to deal with a mortgage broker as I know one very very well and I know I can trust them. However, the loan offer we got through this broker was very unfavourable. It was an extremely high rate of interest - we will barely be able to make the repayments if we accept this.

Dare I say it, if the loan is uncompetitive then your trust may be misplaced. What sort of "broker" is your friend - tied agent, multi-agency intermediary, authorised advisor? How does the offer compare to loans on offer that you may be able to get without the need for a broker? Can you post details of the loan? Don't forget to shop around for the best deal on and as buying these through the lender seldom yields the best deal. Don't buy any other add-ons unless you understand them and determine that you need them. Have you tried shopping around independently of your broker friend and seeing how you get on? If your situation is atypical (e.g. in terms of permanency and security of employment) then perhaps your friend is correct and this is the only package on offer but best to double check.
We know that we can pay a mortgage. We've gone to financial advisers who say that we can afford a mortgage.