Mortgage Brokers

eberle says

"All professionals need to get paid for the value they bring to their clients."

I totally agree with this but it is the client who should pay and not the institution to whom the broker is giving the business.

eberle says

"The truth is most homebuyers want independent advice but they do not want to pay for it. Even in our business a significant number of clients do not want to pay a fee and instruct us to keep the commission in lieu of a fee even when the fee costs less."

Is this not a sad indictment of the mortgage brokerage business - that the majority of brokers (non fee based ) arent held in high enough esteem by punters that they won't pay for their advice? If people valued the advice of a mortgage broker enough then surely they would be prepared to pay for that advice. I value my accountants, solicitors etc advice and am prepared to pay for it. Surely the value one attributes to a service is reflected by the amount one is prepared to pay for that service?

Very interesting thread.

I am currently seeking a mortgage for approx 425k with my girlfriend. We've been to a broker who has found 2 lenders who will provide what we need (without disclosing which lenders or percentage rates). However, for many of the reasons discussed above, we've felt the need to shop around for ourselves. Once we decide on the best deal we'll take it back to the broker and see if he can beat it. If not we'll go direct to the lender.

I do love this site for both the informed and uninformed comments that wrap around these topics.

Note:
1. More than 70% of the Mortgages are NOT via Brokers. These are tied agents called staff of the institution concerned. They use their products and no others. EXPLAIN how indepedence works here.
2. If NIB have the lowest tracker in the market, that is fine. However, how then do you demonstrate that the Client was briefed properly on FIXED rates, and you will see of course that NIB are not competitive there. So do you : Put half variable tracker with NIB and advise client to get a Fixed rate elsewhere?
3. If Broker can get your mortgage through Institution A rather than bureaucratic Institution B does this count for anything?
4. Nobody is forced to deal with Broker. Some cut through the mountain that faces FTBs.
5. Err thats it

Watch the newspapers as I think you'll see NIB offering mortgages through brokers pretty soon and then all lenders will be covered. Stick to large brokers because they do get 1% pretty much from all lenders and are so big that they don't need to shovel cases to a particular lender to be in their good books. I'd say try:

Simply Mortgages
IMC
IFG

we just used IMC Irish Mortgage Corporation and i have to say i found them excellent.

Inpependant Brokers!

Ok i can see that their is no real independant broker,so if the lenders pay a commission of 1% does the borrower end up paying that back ,hidden in repayments.?

This post was merged into this thread having initially been posted in a new thread. Please don't when one already exists discussing your original substantive issue. Thanks - ClubMan.

so if the lenders pay a commission of 1% does the borrower end up paying that back ,hidden in repayments

Click to expand...

No , the lenders do not charge a higher rate of interest if it is a mortgage broker introduced.. however lenders have to factor in the cost of paying commission to brokers so maybe across the board they have factored that into their rates, presumably thats why NIB can offer one of the cheapest rates, as they do not have to factor broker commission.