What does a Broker actually do?

Hi,

I've been to see a Broker regarding making an application for a mortgage.

I ASSUMED this is what happened:

I meet broker; I provide all documentation; broker goes off and checks on special broker computer about bext available rates available etc.....broker comes back to me and advises me on best rate for my needs available right now and then my application goes in to this mortgage provider.......

I assume this as I have had a mortgage in the UK before and this is exactely what happened.

However, the Broker I met with in dublin did the followining: We met and had a chat about mortgages and my needs.....I go back with all my documentation. As this info is being copied I am asked to complete two separate application forms for two Irish Mortgage providers.......I asked the question why am I doing this - is a brokers job not to negotiate the best available deal for me out there and once sourced, explain it to me and then when I agree I put through the application???? Broker says no, this is how it's done in Ireland......

Is this true??? I'm not living here that long, but if this true, whats the point of a Broker - sure couldn't I just approach all mortgage lenders myself????

Very confused - can anyone enlighten me?

Thank you.

emma.

In most cases, you would complete a full generic application form and sign lender declarations to accompany this form. Can't see why he's asking you to complete full applications for each lender, perhaps less work involved for him. J

Is this the same broker who told you it would be OK to declare as a first time buyer even though you have a house in the UK? I would check if he is registered with the Financial Regulator - and maybe think about dispensing with his "services". As you hopefully have read on the many threads here - don't rely on brokers to get you the best deal - especially if you are borrowing less than 80% of the property value. There are lenders who don't go through brokers.

Thanks for that....no it's not the same broker who told me I'd be exempt from stamp Duty - that guy met me in a hotel - I should have seen that one coming.

This guy is regulated - I checked him out and all seemed in order. i'm just so annoyed as it's wasting time and we've seen a house we would like to make an offer on.

So I've just learned that not all brokers represent the 22 Irish lenders (learned that from todays Irish Independant). Great - starting to wonder why the hell we need to use one so - may as well do all the work ourselves.

Thanks anyway.....

Emmaf said:

that guy met me in a hotel - I should have seen that one coming.

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Why? Was it a particular dodgy hotel?

Very funny...he was recommended through a friend and had an office outside Dublin but told me he could meet me in town as I wouldn't have to travel....

I'm seriously starting to really question why we are even considering buying in this country. If there is ONE broker out there worth his / her salt please tell me.

Emma

Emmaf said:

Very funny...he was recommended through a friend and had an office in Bray but told me he could meet me in town as I wouldn't have to travel....

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And....?

I regularly meet clients in hotels to save them travelling to me. Just to be helpful, really. I hope that this particular confession doesn't irreperably damage my reputation

Like I said in previous threads, there are financial advisors/brokers and there are salesmen guising as the former.

The first 48 hours after initial contact with your broker should indicate which category he/she falls under. If he impresses you with his knowledge and then follows through with decisive action - good broker. If impresses and does not give you "the red carpet" treatment - good salesman.

Honest, professional, responsive & knowledgeable (here you should look to see if they are QFA qualified)

always, always ask the broker what fees are involved.

Also, everything he/she presents to you should be transparent. There is nothing worse than a bulls***ting broker.

J

I am in the sub-prime market and thus required to use a broker, but there are huge differences between them. I started out with one broker who quoted me over €1000 for his services and promised me an AIP in 24-48 hours. He gave me a guide interest rate based on (I guess) whoever he thought was the most likely lender. Five days later, I had yet to hear from him with a single lender offer.

I called a 2nd broker, who got back to me the very same day with not one but two offers, charged half what the other guy charged, and came through with an AIP at a lower rate than the 1st broker estimated.

In the interests of full disclosure, I feel like I should say that the 2nd broker was Jonathan.OB. So, EmmaF, if you still want a recommendation, he gets mine! Granted, no paperwork has been signed yet and our relationship has been short, but the contrast in service, offers and prices between broker #1 and broker #2 is pretty startling.

Emmaf said:

broker goes off and checks on special broker computer about bext available rates available etc..

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Information on the best rates is widely available in the Best Buys here and in the national newspapers. There is no reason why anyone with even a small amount of financial savvy cannot identify the best rate themselves.

The role of the broker is for those who have absolutely no clue and no interest in doing any research themselves. In these cases the broker can help with a mortgage - but as said before there is no guarantee of the best deal, as many brokers only deal with a few lenders.

I approached my bank of 10 years as a single buyer. I looking for information and was completely unhappy with the mortgage advisor. The mortgage advisor was completely patronising and unhelpful - of the belief that a young female could not buy her own house. The information I was given was also incorrect.

I did my own research and used a broker and a few months later I had a house. I also liked the single point of contact with a broker as the customer service is many banks is poor.

It's disappointing to see banks withdrawing from the broker market and cutting commission. If I was remortgaging and 2 banks had the same rate I would go for the bank that provided services via a broker.

would see it completely other way round.

bought first house via broker - so many people left/joined brokerage that had to explain position to each one. When buying second house, went straight to BOI and couldn't have been easier.

Yes, factors in deciding depend on the broker or bank (bank branch and staff), your financial position, LTV, if you are a single buyer, and past experiences.

It was BOI that I approached first too and I found them terrible - but it may have been just the staff member in question.