Avoiding mortgage broker fee

[17GoingUnder]

Broker has arranged a DIP from a lender, the fee they've quoted is only payable once I'm in receipt of a firm offer.

Other than annoying the broker, are there any pitfalls to approaching the lender direct?

I would potentially be saving £500.

It will be a "broker only" deal. They don't tell you who the lender is if you could use it to by-pass the broker.

Also, there is a blacklist of people not to give a mortgage too that the broker can report you to - I forget what it's called but find yourself on that and you will NEVER get a mortgage again.

You should have put in the work doing your investigating yourself then. Don’t ask for their expertise and then expect not to pay.

Not all deals are available direct, we got a far better mortgage via a broker than the same bank offered directly, we used l&c who didn’t charge a fee either

So after your broker has spent hours sourcing the best arrangement for you , you don't want to pay them?

Completely unethical

DS used a broker for his mortgage (FTB) recommended by a friend. He got a good interest rate , good terms on paying off the mortgage over time & he got a £500 rebate from the lender. So he thought his broker had done a good job & the broker had a sensible conversation with him when the news was reporting interest rates are coming down.

A decent mortgage broker will not rip you off and see above DS got a £500 rebate from lender. It's up to you whether you think you have more expertise or whether you think going straight to lender is worth it especially in terms of what your time is worth. Although DS and his friends are very much at the lower end of the market , they do have full time jobs , so getting an expert in to facilitate some of that , so it all works well , was worth it to them.

But nothing to stop you approaching the lender direct. Generally if you want someone's time and expertise you have to pay for it. Or , as other's have said they are working on commission from the products they sell. Personally I'd prefer to pay someone for a more unbiased view. But your choice

I used London and Country for all 6 mortgages and I’ve never paid a fee

But you didn't. They have done all the research and work , you haven't

I don't think anyone has an issue with you not either doing a mortgage application straight to lender or using a free broker - that model exists and is valid

The issue is wasting 2 hours of a brokers time who you knew charged, using them to check you can get a mortgage and with which lender and then cutting them out and doing it yourself thereby using them to do the leg work for you with no intention of them getting paid for their work. That is the bit which is unfair.