Using a Mortgage Broker or Not??

Hi All
Just want to get some thoughts on this.

When applying for a mortgage in these current economic times is it better to use a broker or not?

I work for a estate agents and there is a mortgage broker we use a fair bit and I approached them personally for a mortgage quote for my fiancee and myself.

Reason I used the brokers is that I felt that in the current climate where banks arent exactly rushing to give out mortgages ,that the best way to get one was to approach a broker that I knew and who would already have a existing relationship with the banks .

The brokers have a added incentive to get you a mortgage .The brokers have secured MIP from 3 banks.

However my fiancees family feel that its better to ignore a broker and just approach a bank direct.

I personally dont think that walking up "cold" to a bank and asking somebody that doesnt know you a mortgage is going to be as effective as using a broker.

The bank official almost certainly wont know u and while you may have all the necess docs , I think that having the additional benefit of a "reference" from a broker will make a difference.

What are the thoughts of other people ?

many thanks
efm

There's nothing to say you can't do both. Some banks don't deal with brokers at all (NIB for example, although their rates aren't too hot at the moment). I'd get a list from the broker of the banks s/he is going to approach and then go to the other ones yourself. It's a bit more work to do it yourself but it gives you a better insight into the workings of the whole thing.

It's impossible to know what, if any, influence a broker will have on the banks. Obviously, it will come down to your income and what you can repay - I don't think that a "reference" from a broker will sway things much either way. Banks don't have to know you personally to consider your application - over the years, I've gotten quotes from the three banks that I use and haven't once met someone in the bank that I'd met before.

The thing with a broker is that you have to be sure of the banks they are submitting your application to. If you trust the broker, then that won't be a problem. You will always have the gap between the banks that deal with a broker and those who don't though. I'd take a look at the interest rates and see which ones suit you the best and make sure the broker approaches those institutions and, if they don't/can't, then do it yourself. Using a broker takes a lot of the hassle out of things, but only works if the broker gets you the mortgage you want.