Mortgage question

[Risteard]

Can me and the missus find a better deal than a mortgage-broker?

He says he deals with all (16?) of the irish lenders and his fee comes from them.

Thus we don't pay him anything.

However, he wants us to sign a thingy saying that he's acting on our behalf.

Sounds pretty standard. Any reasons for me to hold off?

[Dodge]

Wouldn't take that long to give most of the big banks/building socities a ring and see what they can do for you.

We went directly with prsb a few years agp as their deal suited us best.

[Newryrep]

Can me and the missus find a better deal than a mortgage-broker?
He says he deals with all (16?) of the irish lenders and his fee comes from them.
Thus we don't pay him anything.
However, he wants us to sign a thingy saying that he's acting on our behalf.
Sounds pretty standard. Any reasons for me to hold off?

Kinda in the same position, existing deal (via broker) runs out end of May and got a reminder letter from them. Not sure of the exact benefits although they appear to make things easier eg paperwork etc. There are various mortgage comparison sites for the UK eg http://www.moneysupermarket.com/Mortgagesp/mortgagesstep1.asp and they all have the same format so i dont really know what you are paying for with a broker. They give a 'true cost figure' as a rating which I assume what the mortgage actually costs you including all fees .See if there is an irish equivalent and compare it to what your broker is offering ?. The consensus is that interest rates will fall over the next year so I will probably go for a tracker for 2 years.

[lofty9]

Can me and the missus find a better deal than a mortgage-broker?

He says he deals with all (16?) of the irish lenders and his fee comes from them.

Thus we don't pay him anything.

However, he wants us to sign a thingy saying that he's acting on our behalf.

Sounds pretty standard. Any reasons for me to hold off?

No reason to be honest, he should get you the best deal available.

However, I went directly to AIB to get my mortgage, after getting quotes from other lenders. Also, shop about for insurance cover etc yourself as the broker sells this on a comission basis.

[Sam_Heggy]

I went to a mortgage broker at first, he reckons he could get me best deals going. So after getting his prices,etc, I went to the banks myself and I was able to get better deals there. The guy really p!ssed me off later with constant phone calls, calling to the house, calling into my office and calling to the missus' workplace.
I went with the TSB and its been really good for me so far, the guy still has not given me back all my documents :mad: I reckon he's like that guy in the Simpsons, dead beat and has to beg for clients. Anyways, I just don't like brokers anymore.

[OneRedArmy]

In fairness, do you expect the broker to say he won't get you a good deal :confused:

Particularly in the current market where cost of funding is increasily rapidly and products are changing (eg trackers have been quietly pulled by many institutions or the margin has been increase) it pays to invest some time, both for anyone buying a new place (why you would be buying now is an entirely different question :D) but also for those who have been with a provider for a while or particularly those coming off the tie in period after a fixed deal.

[Risteard]

In fairness, do you expect the broker to say he won't get you a good deal :confused:

No. But surely he actually will if he deals with all the 16. Just wondering if together they'll throw an extra little slice into the equation to thank him for getting our business.

What the broker says - He exists because he saves the bank the time, hassle and resources that meeting me directly and processing my application along with fielding my paranoid questions. He is paid a fee by the bank which is basically a slice of the interest (ie. profit) the lender makes out of me.
Sounds like a credible explanation.

I guess the clincher will be if this thing he wants me to sign allows me to do a Sam Heggy on it.

[pineapple stu]

What the broker says [/B]- He exists because he saves the bank the time, hassle and resources that meeting me directly and processing my application along with fielding my paranoid questions. He is paid a fee by the bank which is basically a slice of the interest (ie. profit) the lender makes out of me.
Sounds like a credible explanation.
It's the reason for any broker - mortgage, insurance, travel agents.

Whether he gets you a good deal or not depends on how good he is at his job.

[Kingdom]

I reckon he's like that guy in the Simpsons, dead beat and has to beg for clients. Anyways, I just don't like brokers anymore.

:D Ah old Gill. The single best character in the Simpsons since Troy McClure.

[Sam_Heggy]

No. But surely he actually will if he deals with all the 16. Just wondering if together they'll throw an extra little slice into the equation to thank him for getting our business.

What the broker says - He exists because he saves the bank the time, hassle and resources that meeting me directly and processing my application along with fielding my paranoid questions. He is paid a fee by the bank which is basically a slice of the interest (ie. profit) the lender makes out of me.
Sounds like a credible explanation.

I guess the clincher will be if this thing he wants me to sign allows me to do a Sam Heggy on it.

I signed a letter to allow the broker act on my behalf in seeking the best mortgage deal available, it didn't tie me down to whatever deal he offered. I suppose you could ask them to make it clear.

[Poor Student]

I work in the bank and I've seen customers who were dealing directly with us and also with a broker and they were able to get a better deal with us than their broker could get with other institutions. I think you're best to go talking to the major institutions yourself.

[pete]

I think brokers can be good for first time buyers but it is a big decision so you should shop around yourself too. I don't think brokers are useful for switching mortgages as banks won't pay legal fees through them.

You should ask the broker what lenders he has checked. If you get a better deal going direct just tell the broker that as asking him to get quotes for you is not a commitment.

[Gaillimh Al]

Am a first time buyer who used a broker. Very helpful and got us a great deal a couple of months ago (which we would not have got now) Everything sorted, house insurance, life assurance etc, recommended a solicitor who deals promptly with all their clients, all within the same financial advice office. Couldn't have been more helpful. Moving in on Friday, fingers crossed.

[lofty9]

:D Ah old Gill. The single best character in the Simpsons since Troy McClure.

Away off topic lol but is Gill a mimic of Jack Lemmon's character in Glengarry Glenn Ross?

[tricky_colour]

Can me and the missus find a better deal than a mortgage-broker?

He says he deals with all (16?) of the irish lenders and his fee comes from them.

Thus we don't pay him anything.

However, he wants us to sign a thingy saying that he's acting on our behalf.

Sounds pretty standard. Any reasons for me to hold off?

Call me cynical, but I'd say he will push the deal which earns him the
highest commision from the bank giving the mortage.

Things are not as straight forward as they seem.
For example you may be tied into taking expensive household insurance etc
or various other tricks used to disguise the true cost. You might get a good
rate early on and then be tied in.

Be as well to do some research yourself, via the web or whatever before you
make a decision.

[Kingdom]

Away off topic lol but is Gill a mimic of Jack Lemmon's character in Glengarry Glenn Ross?

Off topic? You betcha baby! Gill - "I need this sale, my wifes gonna leave me"
Car Salesman - "I'll take it from here Gill"
Gill picks up phone - "You should have seen me honey, I was so close to making a sale. Hey, who is that in the background? Awwww, is that Tom? I thought you were gonna leave him. No, no... dont put him on. Oh, hi Tom!"

[tricky_colour]

Actually in the current 'credit crunch' banks are becoming increasing unwilling to lend, so the deal you can get today may not be available tomorrow.
It's not a great time to be borrowing, but then again the situation might get worse. If you have to get a mortage you might be better off getting it sooner
rather than later, but then again you would have to have a crystal ball to be sure. The seems to be a great deal of financial turmoil at the moment.
Also might make a difference whether you are taking out a new loan or re-mortgaging.
From the UK
http://newsvote.bbc.co.uk/1/hi/business/7328031.stm
I imagine the situation is similar in Ireland.

[Footsoldier]

A broker is supposed to be dealing on your behalf. They have to tell you of any fees they charge and how much commission they earn from your business. It's usually between 0.5 - 1.0%. They may charge an admin fee on top of that aswell in certain circumstances, but that's rare.
You shouldn't be tied to them after they've arranged the mortgage for you. If you want to change after a few years, you don't have to use the same, or any, broker. The advantage of a broker is that they know exactly what the different lenders are looking for. Also, a good broker will know when you will get a good deal by switching and won't be on at you just in order to get another piece of commission. I know, because I'm a good broker!