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Original poster

Is a mortgage broker worth it?

26 replies

MagentaPolenta · 01/07/2020 08:47

I’ve never used a broker before but my fixed rate is coming to an end and I want to do the best thing. My mortgage is £65,000 and house worth £90,000. I work full time but have a low income which limits my mortgage options anyway.
I think at that low end of the market it’s probably not worth paying for a broker and just using a comparison site. Would you agree? Or could there still be a saving to be made?

OP posts:
Whymustyoubringinthebirds · 01/07/2020 08:55

Why not use a broker with no fee, many don't as they get commission from the lender

Whymustyoubringinthebirds · 01/07/2020 08:56

I used L&C for my last remortgage and they where fine

Carpballs · 01/07/2020 08:56

I've found my mortgage advisor to be well worth it, and she is free!

Not all advisors charge, find some local to you and check out their FB page (if they have one for their business) and check out reviews or find recommendations from friends.

Some mortgage companies are only accessible by a broker and this is where I found the best rates - currently on 1.63% fixed over 3 years (nearly up).

Original poster
MagentaPolenta · 01/07/2020 09:02

Oh right thanks I’d looked at couple locally but they did charge. I’ll have more of a shop around and see if I can find one that’s free.

OP posts:
TheresALight · 01/07/2020 09:07

We used L&C too and they were great. We had a relatively small deposit and they managed to get us a deal that we wouldn't have been able to achieve ourselves. We had already been to the bank that we have the mortgage with and would probably have had to save for another year or so to have any hope of them accepting us directly.

You can get a £5 Amazon voucher if you get a quote from L&C using this link (I get one too)...
referme.to/Hjvh4M

LovelyBranches · 01/07/2020 09:09

I haven’t used them. I have found that moneysupermarket was perfect for finding whole of market mortgage deals. When I remortgaged last time I did give L&C a ring and they picked out the same mortgage deal I had already found.

Batqueen · 01/07/2020 09:11

Definitely need a broker. I used a broker that charged this time (325 pound) and the service was worth it but last time I used L&C and that was fine and they are free. When you are at the lower end you need a broker even more as they will make sure you aren’t paying over the odds and will more than make their fee back (if they charge one) by getting you the best mortgage rates.

DappledOliveGroves · 01/07/2020 09:12

I also recommend L&C. Good service, they've always found me the best deals and they don't charge the customer. www.landc.co.uk/contact-us/

passthemustard · 01/07/2020 12:28

I use a great guy to find and change my mortgages, he charges me £400 and literally does all the work. So worth it.

Bumble84 · 01/07/2020 12:34

In my opinion, for me, no they are not worth it at all. However I do feel like I understand the mortgage process and interest rates etc. I’ll quite happily look at all comparison sites then go direct to the websites of t he best to compare and contrast. But, if you don’t feel confident doing that then yes, for the sake of a few quid it probably is. Just depends on your comfort zone though guess. I’d happily pay a decorator to paint my house because I hate it and don’t think I do a good job but other people probably think that’s mad!

dontdisturbmenow · 01/07/2020 14:06

In my opinion, for me, no they are not worth it at all
Totally agree. The first time I approached one, they were free because they were dealing with certain providers. The best deal he could offer was abysmal compare to the desk I got going directly with my current account bank. I was so glad to had gone to them. They didn't work with brokers.

The second time was to get a BTL. Slight odd circumstances limiting providers. I did the research myself but the provider only offered mortgages via a broker so approached one. He charged £500 to come up with the same deal. His management of it was poor and I ended up so frustrated with the endless needless steps that I still end up dealing directly with the provider so really through away £500.

Did my own research again 3y later, was able to deal with a provider directly again and it was all so much easier.

I feel brokers rely on people helplessness when most of their work can easily be done by people with all the information now available online.

Original poster
MagentaPolenta · 01/07/2020 16:28

Thanks have a look at that L&C link but look online as well at least it sounds like there’s no need to pay for one which is good

OP posts:
LeoTimmyandVi · 01/07/2020 19:01

I am in the middle of a remortgage with L&C - I think I wax fairly easy to find a mortgage for, but aside from me answering a few questions on the phone they have done it all. Free and simple!

DennisTMenace · 01/07/2020 19:08

I used a broker, but ended up going throug my balls with them as it was the best deal. I was pregnant at the time and didn't want anyone lending to see me face to face in case there was discrimination about me going on mat leave, so better that the broker talked to them.

Dazzedandconfused · 01/07/2020 19:41

As a FTB I used L&C and tbh it was soo much hassle! My broker encouraged me to apply for a mortgage which was rejected but left a search which damaged my credit score. I then done some AIPs myself and told the broker I wanted to go for X as I'd been accepted. They took ages to get back to me and then after I was accepted I went to another person who took ages to feedback information from the bank. I even contacted the bank direct but was told they couldn't discuss the valuation with me as I'd used a broker Hmm I will just be doing it myself in future as a broker was just a needless middle man in my opinion. The rate I got wasnt cheaper or anything

Cuddling57 · 01/07/2020 19:44

I don't understand why anyone would pay for a broker unless you have bad credit and terrible financial sense.
Use L&C and do a couple of internet searches yourself to compare.

avoandeggs · 01/07/2020 19:46

My guy was great, and free. He was really knowledgable which helped us out loads as FTB

Tootletum · 01/07/2020 19:48

I like my broker. Saved me time. Found a good deal and sorted all the paperwork.

Autumnchill · 01/07/2020 19:51

Used L&C 5 times and they were great for getting us a mortgage when we already had one so we could buy and renovate a second property

BeBraveAndBeKind · 02/07/2020 09:43

We used a broker when we moved house a couple of years ago. She was amazing (and free) and was able to port our existing mortgage over saving us money on early repayment charges. I'd always just done it myself but she was recommended by a colleague and did everything for us.

BarbaraofSeville · 02/07/2020 09:51

They can be useful, if you have 'difficult' circumstances as the broker will know who would accept your case, eg you say your income is low so may struggle on affordability. But I would never pay a fee to a broker, especially for a small mortgage as it is almost certainly not worth it. Also be aware of the cost of product fees - eg £999 on a 2 year fix. Unless your mortgage is massive, this will generally make the product uncompetive.

But I'm another one who got a far better deal by just looking myself and going direct. I also suspect that brokers like to steer people towards short term fixes because it leads to them getting more business in the long term.

I think I tried L&C last time we remortgaged, but it might have been one of the other big players, I can't remember as it was about 12 years ago. They totally ignored what I asked for - I wanted a lifetime tracker pegged to the BOE base rate and they offered short term products discounted from the bank's own SVR, which is a totally different product. They were also quite rude when I pointed this out, implying that they knew far better than I did, which turned out not to be the case, as I still have the product I chose myself and am currently paying under 0.5% annual interest.

GuiltyBark · 02/07/2020 09:56

There are so many online comparison sites you can use and sort by no fee so you can get the best deals out there for nothing all by yourself or look for lower deals with charges. I wouldn't bother with a broker unless you have complex requirements. They'll just be doing the same thing!

TreestumpsAndTrampolines · 02/07/2020 09:56

I used an independent mortgage broker - no fee, he was completely open that the mortgage providers paid him.

He was excellent - we went through several options (complicated case), and what we came out with was exactly what we needed.

PaddyF0dder · 02/07/2020 09:57

Definitely.

We both work for the NHS, and have free access to an impartial broker. He’s saved us a lot of money over the years.

Serendipper · 02/07/2020 09:59

Yes, mine talked me through the whole process. Knew what stage everything needed to be at. Knew the solicitor I was using (and the useless one my seller was) and just got the whole process going when it kept stalling. Luckily we moved in just before lockdown as would have been a nightmare to be in limbo all this time