To use a Mortgage Broker or apply directly to bank?

D

Dee101

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Hi

We are first time buyers and wondering what is the best approach to take regarding our loan application to the banks. We have looked at a couple of the main banks individually to see whats on offer but are none the wiser as to what would be the best option - interest wise etc..I have approached one or two banks on a casual basis and am thinking of putting forward an application to each but I am also wondering whether we are better off using a mortgage broker to give us a better synopsis of what is on offer from the banks and to receive advice on what would be the most advisable option for our particular circumstances.
Are there any advantages / disadvantages to using the direct route v mortgage broker? Do mortgage brokers give you a better chance of being approved in today's climate?

I don't know if this is permitted on aam, but if anyone would recommend a specific mortgage broker also that would be great.

Thanks

Dee
 
Hi I used Mortgage Horizons 016624600 (Josephine)They do not charge a fee and I found them to be excellent.I think they go out to AIB,KBC & ICS.
The likes of Ulster Bank and BOI do not use Brokers.
Stay away from EBS and PTSB as they are not lending and PTSB are only just short of usury on their rates.
 
Amongst other things, I'm a mortgage broker so this isn't exactly an unbiased view, but I'll try to be balanced.

A good mortgage broker should tell you from the outset which lenders they deal with. It's on their Terms of Business letter anyway - you should receive that early on. So a mortgage broker will offer you a choice between the products of the various lenders they deal with. Or you can do that research yourself by checking out the rates and products of all the lenders.

A good mortgage broker should be able to give you an indication from the outset of what level of mortgage you might qualify for, or tell you from the outset that you won't get the mortgage you're looking for. That said, brokers are not infallible in this regard and it's quite difficult even for a broker to predict what way a marginal application is going to go. Lender criteria are changing regularly at the moment.

A good mortgage broker can give you opinions about lenders that the lenders won't give you themselves. For example, Knuttell mentions Permanent TSB above. They have some excellent fixed rates at present, but I'd be VERY wary of recommending them to a client given what they did to existing customers on Standard Variable Rates, which has its own forum here on Askaboutmoney. If you approach PTSB directly, they're unlikely to highlight this kind of thing.

If your mortgage broker is also a life insurance broker and/or house insurance broker, they can get you a choice of quotes on the required insurances. Most lenders are tied to just one source of insurance products, which may or may not be the most competitive. That said, you can shop around for the insurances yourself also if you wish.

As Knuttell mentions, some lenders don't deal with brokers and a good broker should make you aware of this from the outset. For example, Ulster Bank, National Irish Bank and Bank of Ireland don't deal with brokers, although ICS do and ICS is a subsidiary of Bank of Ireland.

I think you're right seeking a recommendation from someone who has actually used a particular broker. Have you friends or family who can recommend a broker to you?
 
Knuttell said:
Hi I used Mortgage Horizons 016624600 (Josephine)They do not charge a fee and I found them to be excellent.I think they go out to AIB,KBC & ICS.
The likes of Ulster Bank and BOI do not use Brokers.
Stay away from EBS and PTSB as they are not lending and PTSB are only just short of usury on their rates.
Click to expand...

If they dont charge a fee who pays them? Banks are giving little or no commisdion afaik. Guy we spoke to was charging 1%....sounds a bit celtic tigerish
 
BICIP said:
If they dont charge a fee who pays them? Banks are giving little or no commisdion afaik. Guy we spoke to was charging 1%....sounds a bit celtic tigerish
Click to expand...

Banks are paying commission, although not as much as they used to.
 
BICIP said:
But whats a fair commission for the customer to pay? ...if any
Click to expand...

As Knuttell mentioned above, some brokers don't charge the customer anything and rely on the commission they get from the bank, which does not impact the customer. Other brokers charge a fee. Such a fee should be openly & fully disclosed in advance of any work commencing. That way, if the customer doesn't feel that the fee is justified, they can look elsewhere, e.g. to a broker who oesn't charge a fee.
 
Hi

Thanks for your responses.

I suppose we are firstly looking at how do we decide which bank is offering the best rate. Trying to compare like with like is a little difficult I find. Thats why I thought a mortgage broker would be a good idea - get all the options in one go.

Also understanding what rates are the best to go with in the current climate - variable, fixed etc. What would people recommend?

Maybe a financial advisor who is independent would be the best to go to first so they can explain everything to us - sort of like a dummy's guide to mortgages:D
 
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