Applying for a mortgage - do I need a broker?

[Pigletspal]

Hi! I have arranged to speak to a broker next week to help me get a mortgage (first time buyer).
She costs £300. (I know there are some that are free, but I trust this lady and she is local, comes recommended through friends etc).

Anyway, I’ve a meeting booked and today take a look at the price comparison sites to find that the second cheapest deals seem to be with my own bank. The very cheapest is only cheaper by a couple of quid. I imagine the whole thing will be much easier through my own bank?

Is it a complete waste to spend £300 to ask a broker to make an application to my own bank on my behalf?!

(How onerous is the paperwork? I would be prepared to pay her if the paperwork is horrible as I hate that stuff and always end up getting stuff wrong - ADHD. But, maybe there is less of that with my own bank?)

I've done non-broker and broker. Using a broker was by far easier and quicker. And they were paid with commission from the mortgage provider (obviously the rate we got was as competitive as oneswe could see from a quick eligibility search online before went ahead, I'm not that naive).
She dealt with all the paperwork and chasing, and just kept us upto date with progress and what to sign.

It's really onerous! If this woman comes recommended then I would definitely go for it. Make sure you only have to pay her upon completion.

I’ve done both and broker is easier, to be honest. However the paid broker I used was a nightmare and required constant chasing, the broker I’ve used for several years now is on commission and he’s bloody fantastic (and doesn’t cost me a penny).

It really depends on your financial circumstances and your own ability/time re paperwork/organisation.

A good broker can be worth their weight in gold if you've got complicated financial circumstances, i.e. self employed or different sources of income/different jobs etc. as mainstream lenders tend to struggle with "unusual" or complicated cases.

But if you've got simple affairs and a long term relationship with your existing bank, it should be very easy. Last time we applied for a mortgage, we used our own bank (Halifax) who I'd been with all my working life, so a good/long history, we walked in, had an hour with their mortgage advisor and walked out with everything agreed in principle, mortgage certificate to give the solicitor, etc - virtually no forms to fill as the advisor just printed everything off from their system and all we had to do was sign it.

@Whatsthestoryboringglory

I’ve done both and broker is easier, to be honest. However the paid broker I used was a nightmare and required constant chasing, the broker I’ve used for several years now is on commission and he’s bloody fantastic (and doesn’t cost me a penny).

Yes, not all brokers are the same. I'm an accountant and often have a nightmare when dealing with brokers as some just don't understand self employment nor the difference between sole trader and limited company etc., even thought that should be pretty basic "bread and butter" work for a half decent broker.

You don’t need a broker, just do it through your own bank. It’s easy, but boring.

Okay, thanks. That’s good to know! I was naively wondering if it would be easier/quicker to do it myself but it seems not! I will keep my appointment with her then

The rates on the comparison website aren't necessarily the rates you will be offered, its all dependent upon your personal circumstances. I found a broker much easier.

@Pigletspal I would use London and Country (L&C) they don't charge you a penny, they take their commission like all other brokers through the mortgage they recommend. They are whole of the market too.

From L&C "Like all other brokers, we receive a payment from the lender when the mortgage completes. The difference is that unlike other mortgage brokers, we simply choose not to charge our customers a fee on top of this.It's an approach that's proved itself to work time and time again. In fact, we've won over 150 industry awards for our services since 2002"

L&C are also recommended by MoneySavingExpert Martin Lewis, have brokers that work around your availability.

www.landc.co.uk/

Oh cross posted!!

I think I’m quite straightforward. Full time employed, single, income secure. I’ve been with my bank for 15 years. I have a current account and credit card with them (my only credit card, always paid in full). Only other accounts are an ISA with a different bank and a Monzo to track everyday spending.

I have no debt except student loan and a good credit rating. I am a first time buyer with 10% deposit.

So I think I’m quite easy?

You do sound easy, and could easily do it yourself. I guess it depends if you think it’s worth £300 to get someone else to handle it. A good broker really comes in to their own if any issues crop up with the purchase or pay checks etc.

I've done broker & non-broker before. Doing it yourself is an absolute pain, the paperwork, the chasing, the general faff!

With a broker they basically do everything, you just give them the information & sign, so much easier!

What is all this chasing that needs doing? Who needs to be chased and for what?
Difficult to know if I’m up to the task, going in blindly!

@user1497207191 I agree, ours was a wonder and managed to perform some sort of magic with my DP and our mortgage provider when there was a quibble about his overtime being inconsistent. I think we wouldn’t have been able to handle that as well as he did or as quickly. He also didn’t batt an eyelid at the self-employed friend we referred to him with a complicated financial situation, who hadn’t been able to get a mortgage himself.

@Pigletspal

Oh cross posted!!

I think I’m quite straightforward. Full time employed, single, income secure. I’ve been with my bank for 15 years. I have a current account and credit card with them (my only credit card, always paid in full). Only other accounts are an ISA with a different bank and a Monzo to track everyday spending.

I have no debt except student loan and a good credit rating. I am a first time buyer with 10% deposit.

So I think I’m quite easy?

Yep, should be no problem at all using your own current bank - you really can't get simpler than your position.

@TokyoSushi

I've done broker & non-broker before. Doing it yourself is an absolute pain, the paperwork, the chasing, the general faff!

With a broker they basically do everything, you just give them the information & sign, so much easier!

Yes, but you still have to give them all the information, i.e. P60s, payslips, etc. They may draft the application, but you have to feed them all the information in the first place, which for a lot of people, IS the problem.

We used First Mortgage as a broker. They took their fee from our mortgage provider. We had one appointment, a handful of emails, and they did everything. They rang us six months before our fixed deal ended to talk us through new fixed deals, we picked one over the phone and they sent an email doc for us to sign. They'll call back when we are six months away from the end of this deal.

My purchasing has been quite similar to you. I've bought three times now (each time selling up then repurchasing from rented property).

I saw a broker the first time I bought then didn't use their recommendation as Nationwide came out cheaper directly!

After that I've just had q quick scout at the market and seen that Nationwide remained in the ball park for price and stayed with them...

Just go to your bank and do it yourself. If they have one of the best rates anyway in your circumstances the paperwork is straightforward.

We've just been though this. DH had an initial chat to the recommended broker about the deals he'd found and were they good through our own bank. Broker agreed they were really good rates and said we'd be better of saving the money we'd spend on his fees! We've ended up using London and Country (free) anyway as we had a slightly complicated situation so it's easier having them track everything for us.

I think a good broker won't take the mick. Ask for a quite chat beforehand and tell them what you've found.

OP I think it does sound like your situation is straightforward.

However, when we first bought, our broker had access to deals that weren't available on the open market. DH had been with Barclays for 14 years and they took 3 minutes to admit that they couldn't come close to matching the deal the broker sourced for us.

Do check that her fee is only payable on completion though - if you don't get the keys (vendor changes mind, survey is unproceedable, etc) then she doesn't get paid - that is the industry standard and what we've always been told by our brokers.

It's this "they don't get paid unless you're in" that is the real advantage of a broker. It means that if the chain is in peril, or your solicitor is being slow, or the bank are suddenly hesitant, you've got this expert person in your corner who will get on the phone and smooth things over.

I recommended our broker to my then-boss, who was buying a several-million-quid house with her non-UK-national husband. Right at the very end of the process, some issue came up with her husband's papers. She told me frankly that without the broker they wouldn't have been able to buy - he made it all magically go away! It's an extreme example :) but the broker really should make things go more smoothly for you, which is always handy as a FTB.

Best of luck!

Honestly would do it yourself or use L and C then enjoy spending my £300. You need to give the same info either way and many places are very easy to deal with due to online uploads etc. It’s also good to understand how the deals work, what they mean and what a good deal for you looks like .

If it's straight forward, go through your own bank. My brother is a mortgage broker and when getting my mortgage, and doing equity release last year, both times he told me it was more straight forward and cheaper (there was a marginal saving with one provider) to go with my own bank so he advised me to do it directly.

Just saw your comment re: being a FTB. It may well have changed since last year when my younger brother was applying for his FTB mortgage, but again our older brother said the best rates for a FTB were with NatWest/RBS, so again, easy to go it alone.