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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To not pay a mortgage advisor for this?!

36 replies

NeverOwnAHouse · 10/07/2019 14:18

So we have been talking to a mortgage advisor as first time buyers - one that another estate agents recommended, not the ones we’re actually buying a house through.

Anyway she wanted a TON of stuff from us which we have quickly got together for her so she can apply for a mortgage.

Then she sent us her recommended mortgage with a well known high street bank at 1.99% fixed rate for 2 years. I already bank with these guys so had looked at their mortgage products before and knew they had a better deal. I sent it back to her and she was like “yeah, you can get that one but you’ll have to pay the valuation fee on application.”
Okay, fine, could lose that £248 but we’ve put an offer in quite a lot below the asking price and it’s been accepted as they just want to get rid of it (it’s their late mother’s home) and my DH works in the construction industry and has said there’s not a HUGE amount of work to be done so it’s unlikely to be valued at less than what we’re getting it for.

Basically, I’ve done her job for her and I can’t work out why we would now pay £549 for her to fill in the application form - plus she gets commission from the bank, of course.

We haven’t said for her to go ahead yet so she won’t charge us until we do. Am I missing something else that mortgage brokers/advisors do that we’d be paying that money for? I was always told that they find the best rates and have exclusive offers that make them worth the money. However, I found a better offer than her so can’t work out what her role would be now - other than filling in the forms?

WIBU to say we’ll just go it alone now? Will I regret it?!

OP posts:
Littlemissdaredevil · 10/07/2019 14:23

I don’t think you are being unreasonable to go it alone but you will have to do all the chasing and liasing with the lender.

It cant be very useful to go through a broker if your have non-standard circumstances or a less than stellar credit history, or unusual employment circumstances.

However, I bought a house that needed work and I am glad that I did uses a broker as the application turned out to be a nightmare as the property has an fixable problem but getting the mortgage surveyor to agree was a nightmare!

PooWillyBumBum · 10/07/2019 14:30

I would ditch her and go it alone if it’s a fairly straightforward application.

When numbers are tight, it’s an unusual circumstance or you’re worried about acceptance a “proper” broker is really useful but as our LTV goes down I prefer to just sort myself or call London and Country and also avoid being sold every insurance under the sun.

avalanching · 10/07/2019 14:31

Just don't go with her. Apply directly with your bank, it'll be quite simple as you bank with them. We applied directly as first time buyers and it was really easy, I certainly wouldn't pay. Our last mortgage was through a broker and all I can say is I'm glad the lender paid as she was more hassle than anything, they're just a middle man to me and not in the good sense. If you know the mortgage you want just book an appointment, you'll still have a named adviser at the bank helping you.

User8888888 · 10/07/2019 14:35

If you know what product you want, have a reasonable ltv, permanent jobs and have a good credit history then I don’t really see the point either. For people with issues, brokers seem to know which lenders would be more favourable. I wouldn’t want to pay if you’ve actually found a better deal yourself.

DGRossetti · 10/07/2019 14:37

For our mortgage, out "independent" mortgage advisor just happened to recommend a mortgage with the bank that they were agents for. We were assured it was the best possible offer for buyers in our position.

A little bit of high street walking revealed an offer (from Nationwide) which was considerably better. Lower interest rate plus cheaper arrangement fees.

Original poster
NeverOwnAHouse · 10/07/2019 14:44

Thanks for the replies.

We have a 13% deposit so a good LTV rate. We are, however, both self employed but have all of the paperwork that proves our income for 3 years (all of which shows a good increase). Our credit rates aren’t the best but this mortgage would actually mean we are paying half of what we currently do in rent, so our affordability is good...

I just don’t know whether us being self employed will be a big issue.

OP posts:
Original poster
NeverOwnAHouse · 10/07/2019 14:45

Oh and also the deal she offered us was with Natwest but wasn’t as good as the other one we could get from Natwest - so I don’t know what she’s actually ‘done’ bearing in mind our circumstances if I can just pop into branch and get the same deal?

OP posts:
koolaider · 10/07/2019 14:49

Has she got you a Decision in Principle with them?

Original poster
NeverOwnAHouse · 10/07/2019 14:52

Well we actually needed one quicker than she could do (she was off for a couple of days) so I quickly filled the forms in online and got one with the same bank anyway, so we have one from them which we did!

OP posts:
User8888888 · 10/07/2019 14:53

Self employment might make a difference. I’d repost this on the money saving expert board and I’m sure you’ll get some good advice.

MyKingdomForACaramel · 10/07/2019 14:55

A 13% deposit is a high ltv and with being self employed this really isn’t a straightforward application so I’d think carefully (have bought both with and without brokers myself)

koolaider · 10/07/2019 15:01

Make sure your better deal direct is actually better value. A lower interest rate doesn't necessarily mean it's better value for money. For example, the total you pay over the 2-yr fixed period taking into account fees, cash back etc is where you need to compare.

And a self-employed application will require more paperwork. Your brokers job is to take care of all that for you plus she will be giving regulated advice which offers you more protection.

Is she an independent broker or tied to an estate agent?

Xyzzzzz · 10/07/2019 15:01

Having worked in mortgages, 13% deposit is a high ltv and not a lower one. Being self employed isn’t an issue if you have the paperwork and income.

If you’ve done it your self online with no involvement from the bank or an advisor then that’s classed as non advised. As long as you’re happy with the risks associated with that and understand all the associated products fees e.g. ERC’S etc then fine.

runoutofnamechanges · 10/07/2019 15:03

This wouldn't happen to be a mortgage advisor at an estate agent would it?

A good mortgage broker will potentially be able to get better deals, help smooth the process, making sure you have everything in order. A bad mortgage advisor will cost you lots of money for nothing at best, at worst, give poor advice.

Pretendbookworm · 10/07/2019 15:04

If she has already spent considerable time filling out the forms for you then you may be liable for paying for her time. I’m sure they usually get paid by banks but id double check to make sure.

Are they a mortgage broker or a financial advisor? Sometimes they can be both. If they are a FA then going through them gives you an extra layer of protector and more clout with applying to banks, especially if you are self employed or if in the future you struggle to make payments.

Original poster
NeverOwnAHouse · 10/07/2019 15:05

Okay, I understand we might need more paperwork but surely she’ll just ask us for that like the bank would? Like a middle man? I can’t see how that would be less effort for us if that makes sense.

In terms of direct comparisons, the one we find is definitely better value (she admitted this herself) as long as the valuation is okay and we’re 99% sure it would be. If it isn’t, we’d lose £248 all in all.

OP posts:
Original poster
NeverOwnAHouse · 10/07/2019 15:06

They’re a mortgage advisor at an estate agents. No money is due until application which she is now pushing for us to do today.

OP posts:
koolaider · 10/07/2019 15:06

She's tied to an agent isn't she?

Chovihano · 10/07/2019 15:06

She has been working on your behalf, do you work for free.
The only thing you have missed is that you are a complete CF.
HTH

koolaider · 10/07/2019 15:06

Cross post.

Go to an independent broker.

Original poster
NeverOwnAHouse · 10/07/2019 15:09

What work has she done though?! It’s effectively a quote - in my experience, you don’t charge for a quote! Nothing has been tailored to our circumstances as we can get the same deal direct.

OP posts:
koolaider · 10/07/2019 15:10

In terms of direct comparisons, the one we find is definitely better value (she admitted this herself)

So what is her justification for advising you to take a worse deal?! She's tied to certain products by the sound of it. Yours sounds OK but an independent may find you something even better. Worth shopping around.

marvellousnightforamooncup · 10/07/2019 15:18

It isn't cheeky not to buy something. If a shop assistant finds a dress in your size for you you don't have to buy it. If she's not found the right product then walk away.

DuckbilledSplatterPuff · 10/07/2019 15:28

I agree with marvellous. You are not legally obliged to take what ever she decides to offer you. Is she connected to the agent who is involved in your house sale though. Could bad will affect the sale/purchase proceeding?
In most cases if you find a cheaper deal surely you must be allowed to go for it? but you are better getting extra advice.
We once had a mortgage broker who did something similar.. but I was able to say when they announced it that I knew there were cheaper deals and quote them. They just shrugged as they were clearly tied to certain firms.

Chunkers · 10/07/2019 15:29

I used L&C as recommended by Money Saving Expert (at the time). They found me a great deal, did all the paperwork and didn’t charge commission.

I don’t work for them!

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