How much bargaining power does a mortgage broker have?

[SLS]

Might seem a strange question but I was wondering in reality how much mortgage brokers can "negotiate" mortgage rates.

I spoke to a mortgage broker today about a tracker and he has named a rate for one lender and said he is speaking to another lender to see if they will match the price.

Im wondering whether we should push them further to try and save even more or whether it would be just a waste of time?

 

[LDFerguson]

I spoke to a mortgage broker today about a tracker and he has named a rate for one lender and said he is speaking to another lender to see if they will match the price.

Just curious - how would this benefit you? Why wouldn't you just take the first offer if the second one will only be identical?

 

[SLS]

As fas as Im concerned there isnt much benefit at all. We had pre-approval awhile ago with the second lender so the only saving is paperwork

My question is more around the ability of a mortgage broker to negotiate real value for money

 

[bobk]

the main benefit of a broker is to source the best deal for you and then get it approved.

Only a couple of lenders will allow rates to be negotiated, but it does happen

 

[LDFerguson]

A lot depends on how much business the mortgage broker places with the lender with whom s/he is haggling. A lender is unlikely to offer special discounts to a broker who places little business with them. They are more likely to accede to an occasional request for a special offer (within reason) from a broker who places tens of millions of mortgage business with them per year.

It also depends on the application. If the applicant only barely qualifies for the requested loan, the lender is less likely to offer special terms. If the loan is small, ditto.