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why use a broker? what is the point? what do i get using a broker than i don't get doing it myself.

Good reason to use a mortgage broker - It saves you the hassle. Then, once they've found your mortgage, go and sort it yourself and save paying them.

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why use a broker? what is the point? what do i get using a broker than i don't get doing it myself.

You could just use a site like 'Whatmortgage?' and see just about all that is on offer. Mortgage brokers are really only required for complex deals. I do hope no one is doing any just now, what with a HPC on the way.

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cheers. so how do mortgage brokers get paid? is it a fee that the customer pays or is it free and they get commission from the mortgage provider? If I pay, what is a typical cost.

this is all just informational from me, i'm not out of deposit saving mode yet.

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I don't have an axe to grind one way or the other on this topic but it may be useful to offer a very slightly different perspective.

I have experience of using a mortgage broker, which was a choice I made to save time and trouble (I am financially literate, but have a huge workload...).

The fee structure for the broker I used was as follows: a fee from me, and a fee from the lender. The latter was larger, and was disclosed/transparent. The range of lenders was very large, and moreover the deal recommended to me was very good, so I was not uncomfortable with this. Note also that the fee from me was only to be paid on completion of a deal, so at any point I could browse the high-street/internet and seek a better deal.

I can understand why people might object to using brokers, in which case they shouldn't use them. I personally found value in three areas besides ending up with a competitive mortgage deal:

1) The guy I dealt with was a bright economist and frankly useful to discuss my thoughts about housing market and economic outlook with. Ymmv!

2) Gave useful insight into the relative speed with which the mortgage application/survey could be processed, and appeared on the face of it to have some clout and relationships with lenders that made things move more quickly.

3) Very helpful in processing applications quickly (we switched lenders during the process and the broker took care of everything except signing the declarations). This mattered because owing to my job I have precious little spare time.

So my advice is to carefully assess how any broker is paid, whether or not they have a good reputation, and whether or not you really will benefit from their services. But don't necessarily rule it out.

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I don't have an axe to grind one way or the other on this topic but it may be useful to offer a very slightly different perspective.

I have experience of using a mortgage broker, which was a choice I made to save time and trouble (I am financially literate, but have a huge workload...).

The fee structure for the broker I used was as follows: a fee from me, and a fee from the lender. The latter was larger, and was disclosed/transparent. The range of lenders was very large, and moreover the deal recommended to me was very good, so I was not uncomfortable with this. Note also that the fee from me was only to be paid on completion of a deal, so at any point I could browse the high-street/internet and seek a better deal.

I can understand why people might object to using brokers, in which case they shouldn't use them. I personally found value in three areas besides ending up with a competitive mortgage deal:

1) The guy I dealt with was a bright economist and frankly useful to discuss my thoughts about housing market and economic outlook with. Ymmv!

2) Gave useful insight into the relative speed with which the mortgage application/survey could be processed, and appeared on the face of it to have some clout and relationships with lenders that made things move more quickly.

3) Very helpful in processing applications quickly (we switched lenders during the process and the broker took care of everything except signing the declarations). This mattered because owing to my job I have precious little spare time.

So my advice is to carefully assess how any broker is paid, whether or not they have a good reputation, and whether or not you really will benefit from their services. But don't necessarily rule it out.

thanks, that's constructive. are fees likely to be flat or a % of the loan amount value, I mean are we talking a few hundred quid here or something else altogether? i'm really just trying to understand how to spot a bad egg before I get my **** handed to me if i were to seek out a mortgage broker.

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Hi,

In my case, the broker's fee (the fee from me at least) was flat, in the 00s of pounds, rather than a % of the loan. As with any fee I would feel free to shop around and treat it as negotiable if you feel that's appropriate.

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I'll add my 2p.

A friend of mine is an independent mortgage broker, and I asked the very same question. Usually you will find the fee that the broker would get goes to the person you contact at the bank/building society anyway.

I got a mortgage through the post office, which was under written by the bank of Ireland. It clearly showed the fee (in the documents) the post office would get, and when I spoke to The post office chap he did say part of that is his commision.

I would just make sure any broker is Independent, and whole of market (not from a panel). Also, you will find brokers usually make much more money from selling the insurances that go with the policy.

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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