Is it worth paying for a mortgage broker?

FreeBeeBird · 2024-06-28T07:23:29+00:00

Is there a difference between those who are free of charge and those you have to pay for? We are FTBs with a 10% deposit, fairly standard circumstances except the fact we have high childcare fees and rates are obv very high so we'd like to secure the best possible deal. Is this something a free broker like L&C can easily help us with or would it be better to pay for one? All EA we speak to want to get us to use their brokers and they all seem to charge fees, I am not keen. Thank you in advance

Saschka · 28/06/2024 08:29

I didn’t find they could get me any deal I couldn’t have found myself (in fact I got a better deal going direct to Halifax than my broker could find for me).

I may have just had a very shit broker though! Went through Charcol, L&C may be better.

SlipperyLizard · 28/06/2024 08:34

The agent wants you to use their broker as they get a referral fee.

I’ve only used a free broker (Charles Cameron) in both “normal” and unusual circs, they were brilliant and although I could maybe have found the same deals myself, the time they spend and access they have to information (eg when our house was down valued they already knew who the next best lender was etc) is invaluable.

I wouldn’t DIY myself again, just to take the hassle away.

KievLoverTwo · 28/06/2024 08:36

Tbh I have yet to find a good broker whether paid or not. As soon as you start asking a bunch of questions that they have to spend time on and research, or you want to talk through half a dozen types of mortgages, they quickly lose interest. Maybe they go the extra mile if you are buying a very expensive house? They all have their favorites and try to push those: Nationwide and HSBC seem to be favorites. I have been told that’s because brokers find them easy to deal with.

L&C are fine in non complex cases, but be aware they took 1k out of our account and submitted a mortgage application before we agreed to it last year. Be very clear that they must not to that until you say so. In fact I had similar BS with First Direct (the bank) this year too - without the money part.

So no. I wouldn’t pay. The OH spent time talking to three last year and wasn’t impressed with any of them, and this year a different one sent a two page long bloody essay all about how the process works but didn’t actually answer 4 out of the 6 options we asked about.

Campestris · 28/06/2024 08:38

L&C are fine. I used them recently. All good.

skyeisthelimit · 28/06/2024 08:39

I’ve always used an IFA and never paid them. Mine worked on commission. They had access to products that weren’t on the market. They were great.

SurelyNot22 · 28/06/2024 08:41

I have always used the same broker who is an IFA and has always been excellent. I can't vouch for others but I can't imagine trying to do it without him as he is so good. He got me a mortgage years ago when all other companies had turned me away due to being FTB and self employed. In fact he got me a choice of mortgages. I can share his website if you want to DM me

Fluffycloudsfloatinginthesky · 28/06/2024 08:42

My broker didn't get me any better than I could have found myself however where she came in invaluable was when the solicitors appointed by the bank were being a nightmare and she put pressure to get it sorted.

KievLoverTwo · 28/06/2024 08:44

SlipperyLizard · 28/06/2024 08:34

The agent wants you to use their broker as they get a referral fee.

I’ve only used a free broker (Charles Cameron) in both “normal” and unusual circs, they were brilliant and although I could maybe have found the same deals myself, the time they spend and access they have to information (eg when our house was down valued they already knew who the next best lender was etc) is invaluable.

I wouldn’t DIY myself again, just to take the hassle away.

Just to add to this that because brokers weren’t working for us we applied direct. We have passed the underwriting stage and now have to talk to a bod about what sort of mortgage we want. Idk why that didn’t happen straight off. I already knew what I wanted. But they made us jump through a bunch of hoops first.

Our DIP from them has NO rate on it, and they have put them up 0.2% since we started the process.

Going direct can be tedious and despite my disdain for a lot of brokers, I am not sure I would do it again.

Brokers seem to be an awful lot quicker as well.

KievLoverTwo · 28/06/2024 08:48

SurelyNot22 · 28/06/2024 08:41

I have always used the same broker who is an IFA and has always been excellent. I can't vouch for others but I can't imagine trying to do it without him as he is so good. He got me a mortgage years ago when all other companies had turned me away due to being FTB and self employed. In fact he got me a choice of mortgages. I can share his website if you want to DM me

Please can you DM me, thanks.

bluedressforme · 28/06/2024 08:51

I have used L&C for years. They are free, why would I pay someone? I think they are still recommended by Martin Lewis of Money Saving Expert. They are whole of the market too.

ClonedSquare · 28/06/2024 08:52

There are free brokers, who make their money from the mortgage provider you sign up with. We went this route for our mortgage as my husbands financial situation is complicated (director of a limited company rather than employee or self employed) and it was so easy

He knew exactly what documents we needed to provide and how to answer questions properly (we weren't being dishonest, but it's very easy to accidentally make your situation look worse than it is if you don't understand exactly what the person is asking!)

NoIdeaWhyNow · 28/06/2024 09:02

FTB here and I used a broker recommended by a friend who used them (as did his whole family) and honestly he was great. Could I have got the same deal myself? Probably. But he took all the stress out of the situation, answered all my questions (and more!), took the time to go through all the various options with me and has been available throughout the process to answer any questions that I had, even ones that weren't strictly related to the mortgage. My mortgage was approved within 24 hours and the whole process with him was hassle-free. The sellers on the other hand are a different story...

Icanttakethisanymore · 28/06/2024 09:04

I wouldn’t bother using a broker if my situation was vanilla, just go on a comparison website and approach the firms ruth the best rates directly.

mondaytosunday · 28/06/2024 09:05

Mine didn't charge me anything and got me a good deal. Saved me having to do the legwork myself. He also emailed me when my fixed deal was about to end and found me a new one below advertised rates. He had useful advice about my unique circumstances.

WiseBiscuit · 28/06/2024 09:06

We always use an IFA and have never paid-they just take commission.

I wouldn’t touch anyone via the estate agent.

ohsobroody · 28/06/2024 09:06

Worth it for us. Paid £400 for a whole of market one, they got us a better deal and dealt with all the hassle. The sale dragged on 14 months. Our offer was revoked as interest rates soared in that time.
They were a dream and smoothly got us a new lender and offer asap so the chain was never in danger. Invaluable.

SurelyNot22 · 28/06/2024 09:57

@KievLoverTwo Their website is mjsmortgages.co.uk/

AutumnDragon · 28/06/2024 10:59

I've always used a broker. Ours has a small fee but he more than earned it when our last move turned into a nightmare. I would never touch an EA broker as their loyalties do not lie with you, their client!

Some of the free brokers won't touch small, simple cases as the commission would not cover a fraction of their time, let alone pay for all the regulatory fees and insurances they have to pay.

I'm also not keen on big companies such as L&C. You don't speak to the same person each time you call, when I call mine I either speak to my broker or his assistant (who is lovely), they always remember me and can frequently answer my questions immediately. Also, as the rate dropped twice whilst we were waiting to complete, he redid the offer both times to save us money. He rang us to ask if it was ok to proceed rather than us having to ask him.

AmelieTaylor · 28/06/2024 11:07

I wouldn't touch the ones associated with the EA.

i use a local broker, he charges a fee, but it's not huge and gets me a good deal. Some deals are only available to brokers.

If I didn't have this broker, who I now trust, I'd probably try L&C.

Original poster

FreeBeeBird · 28/06/2024 11:18

Thanks all!

OP posts:

Fudgetheparrot · 28/06/2024 11:24

We used L+C as first time buyers- had only been in my job 3 months so they were great for getting us a good deal but also making sure we applied somewhere that would accept that. Would definitely use them again

Saschka · 28/06/2024 11:35

Also, as the rate dropped twice whilst we were waiting to complete, he redid the offer both times to save us money. He rang us to ask if it was ok to proceed rather than us having to ask him

Halifax did that for us anyway though! Their internal mortgage advisor rang us up to say they had cheaper rates than our AIP and did we want to switch before we exchanged. Transferred us to the new product in about 24hrs, just had to re-sign the deed.

WoolyMammoth55 · 28/06/2024 11:37

We've always used a broker, an IFA who was highly recommended to us as FTBs many moons ago.

He charges but his fees are only due on commission. If your vendors changed their mind at the 11th hour, nothing would be payable.

That fee structure makes him super-motivated to get the deal done quickly and I know that when solicitors were slow and vendors were dragging their feet, it was him hitting the phones and getting us over the line...

My DH is also self-employed and there's been times he's found us deals that we wouldn't have been eligible for without his insider knowledge.

But even at our most vanilla (as FTBs) we went direct to a few banks with his deal (asking them to match it basically) and it was light years better than what they could offer.

For us it's always been well worth the commission - as evidenced by us using him every time!