Mortgage broker. Are they worth it?

[Inchy]

I’m currently in the process of moving house and I need to find a new mortgage deal. When I bought the house I live in now I used London and Country and have subsequently used them again when my fix term end.

However, last time i fixed I went to use L and C again but the “deal” they found me was worse that what I found on a comparison site. I was lucky that it was only a small mortgage last time so I assumed they couldn’t be arsed putting the effort in as the commission would be small.

This time it will be a bigger mortgage but not massive. I’m wondering if it’s worth the faff and delay of going through a broker, or just sorting myself on a comparison site? My solicitors are asking for the mortgage company il be using and I don’t want to delay the process by waiting for a broker but I would do it if they can still get the best deals.

Has anyone had any recent experiences of this? In the age of comparison sites do brokers offer much anymore?

[MDWat]

I work in finance (debt) and am remortgaging on 1 November. I used a broker, who found me a better deal than anything on comparison websites (often the best rates require a broker).

We had a mortgage agreed with Virgin but they found a better deal after our original agreement and took all the faff out of talking with them to get us the better deal. Saved us £550 over the term of the mortgage which was more than the broker fee.

Worth it in my experience (if you get the right broker).

[Poulton-le-Claret]

I've used one before and he offered me a worse deal than what my own bank offered me. Needless to say I didn't take him up on it.

If you do use one, do your own research as well to check they are actually going to save you more money than their fee.

[ArmchairDetective]

We've used one twice in the past few years since we bought our house (then remortgaged). I'm fairly confident in saying we got better deals than we could find. If I'm correct in the difference in rates I'm thinking then we've saved far more than the up front fee we paid the broker. Didn't make a note of the rates available at the time, however. So all in all I've not been very helpful.

All the best with the move Inchy.

[ArmchairDetective]

Hang on. Am I mixing up a financial advisor with mortgage broker, or are they the same thing?

If they're not the same then I believe we have the former.

[ColneMonkey]

Hang on. Am I mixing up a financial advisor with mortgage broker, or are they the same thing?

If they're not the same then I believe we have the former.

I’d say no - different world of finance I suspect.

We had a financial advisor who's only job, it appeared, was to get us in some terrible setup so he got a remarkably rewarding set of kick-backs - needless to say he didn’t get any work from us.

We’ve also had a mortgage broker who’s been brilliant - remortgaged twice with her and been comfortable with everything.

[fatboy47]

Find the very best deal you can.

Contact a broker and ask if they can significantly improve on it...

If they can, engage them. If they can't, then why would you?

[ClaretMat]

Agree with fat boy
We have just used L and C as we are in a similar position to you Inchy, they found a rate the same as we could but we utilised them due to their accessibility.
The application process however was very slow and tedious. I am not sure if this is a sign of the current market situation or inadequacy on L and Cs part. They did though sort it through our provider once we had picked the phone up.to them and voiced our concerns, I guess they have more leverage than an individual buyer so can fast track things. If you go with them and experience delays then dont defer to the portal as an easy option, pick the phone up.

[Quickenthetempo]

Bare in mind they are expecting the interest rate to drop at the next meeting.
So I wouldn't jump in too fast.

[Boss Hogg]

Yes use one but a good one.

[Fretters]

We used Fluent in 2020 and they were great (for us). It's up for renewal next year, so I'll be getting back in touch.

[burnleymik]

The lad at Pacific Finance in Burnley, Adam is very very good. Well worth having a quick chat with him.

[SirBob]

Mortgage broker got me an excellent deal on my first mortgage and also advised me to get a 20 year deal rather than a 25/30 because of my financial situation. Saved me quite a bit of money in the long run.

[IanMcL]

Find the very best deal you can.

Contact a broker and ask if they can significantly improve on it...

If they can, engage them. If they can't, then why would you?

Just right

[Guppyspotter]

I never found a broker who could beat the mortgage products that were readily available to someone like me i.e. tight and willing to spend a few hours looking.

I sorted all my own out from best buys in newspapers over the years and more latterly the internet.

My top tips:

1. Max out on your deposit to get lower rates by having a 15% minimum deposit.
2. Don't add the fees to the mortgage.
3. If you must use a broker, use a whole market broker.
4. Consider paying a product with a fee if it will get you a lower rate and the rate saving exceeds the fee.
5. Be careful with point 4. The smaller amount you borrow the less likely the fee will be offset by the lower rate.
6. Look for products that allow you to overpay e.g no penalty for paying off 10% of the balance every year. You might not be able to overpay now but on a longer fixed rate you might find you have more spare in a couple of years as wages/income rise but the repayment remains the same.
7. Be prepared to sacrifice to get that debt down by overpaying when you can.
8. Be careful with interest only.
9. Turn down the heating and buy a few jumpers.
10. Don't put home improvements onto a mortgage. If you haven't got the money now, save until you have.

[Guppyspotter]

Just remember, the financial advisor or mortgage broker is not your mate. Like you he is trying to get the best deal. Sometimes the best deal for you is not the best deal for him.

[Rileybobs]

Obviously you should research the market yourself via the various comparison sites but why not use a free broker. I used L and C for a recent remortgage, and whilst they found a product with Barclays that I could find myself, they made the process more straightforward by being able to fill in forms and upload information via their portal until being passed onto the lender’s conveyancers. Also, not the OP’s case, but when remortgaging you can secure a deal 6 months before your current offer ends, so can check in every month to secure the best offer within that 6 month period. Again, a broker like L and C do the leg work so it’s a bit of a no-brainer in my opinion.

[Funkydrummer]

Martin Lewis's Money Saving Expert may have some good tips.

[GetIntoEm]

I go with a independent full market advisor, saves the hassle of searching. Used her for about 10 years now. Just send an updated ID every time and she does the rest

[Leyland Claret]

My son used the below broker for his 1st mortgage and had fantastic service and got a really good deal with cash back. I think it’s worth the small outlay.
https://acorn-mortgages.co.uk/

[blake's wand]

I'd say definitely use one. Most brokers don't require fees from you, they get paid directly from the banks if you go with them. I wouldn't pay the broker anything directly.

From our experience, they have the ability to plug your numbers into all the systems at different banks and also have relationships they can use to get you the best deal for your situation. I'm not sure if it necessarily ends up with a better rate, but they do all the legwork and shouldn't cost you anything.

[StuffyClaret]

I'm an ex-mortgage broker (still working in Financial Services) and I use a mortgage broker.

Back in the day, clients would tell me what the best deal was (usually the lowest interest rate advertised in the money pages of The Mail on Sunday). Nine times out of ten, I could usually justify why that deal wasn't the best option for that clients circumstances and guess what, they usually went along with my subsequent advice!

For anyone wondering, I also use Adam at Pacific Financial

[Foshiznik]

I used one and although it cost me £500, they helped to quickly find an equal deal with another lender when the first lender rejected my application due to the property reportedly having a medium flood risk. They will also do all the work whenever I remortgage in the future for no cost (payment is one off per property) taking out the stress and time of doing it myself. Also like having an expert to answer my stupid questions as a layman first time buyer.

[Foshiznik]

A good broker also has strong connections with people such as valuators and underwriters at lenders so if you have unique circumstances or the lenders automated system doesn’t approve your application, they are able to sell you to them or at least gather feedback from them to increase your approval chances.

For example, my mortgage application wasn’t approved and was sent to the underwriter initially but they explained that if I paid off £100 from one of my credit cards it would bring me into their approval criteria, something I wouldn’t have known without using a broker.

Highly recommend a broker/advisor.