Mortgage brokers: Joe’s karma moment
We asked one of our members why he used a mortgage broker...
June 11, 2013
Why I used a broker
I always thought mortgage brokers were another layer of people making money out of joe public. I still do to a certain extent: if you’re proactive and know where to look you can find the right product for you. But I don’t have the time. And this time round, I’d been reading around, online, and couldn’t see the independent viewpoint on mortgages anywhere else. So I decided to give it a go.
Banks bank (excuse the pun) on you using them to find your mortgage, they expect it to be a natural step: you bank with them, you get a mortgage with them. Oh, and they’re banking on you being lazy too of course. Don’t get me wrong I’m as lazy as the next person, but when I phoned Barclays they told me that my mortgage advisor couldn’t see me for a week. Maybe I’m not as organised as I should be but we’d found a house we liked and needed to know asap that I could get the finance in place to make an offer and start negotiating. So a week just wouldn’t do.
I’d asked around at work and friends and been to the HomeOwners Alliance site, and mortgage brokers – if you choose right – can get you a whole of market view of mortgage deals on offer at that time. I went with someone who didn’t charge a fee (no brainer). That fact and the level of personal service in my experience has made using a broker worth it.
So what was my experience?
I phoned a broker and got someone that wanted my business and spent 20 minutes talking to me straight away. We talked about the options and quickly came up with logical ideas and costs which gave me enough information to make an informed decision at that time.
After initial enquiries my broker helped me with the feasibility of what I wanted to borrow. Now we have sold our property and things are moving he’s moved quickly, I’ve got a mortgage offer with a number of different rates to think about. At 6 o’clock last night he emailed me to say the rates of one of the mortgages was changing overnight and he’d let me know in the morning. I wouldn’t dream of getting this service from the bank.
The irony is that my bank offers the best mortgage choice for me. But I’m now in the process of arranging it via a broker because I know the broker will respond to my questions immediately rather than feeling like a number, waiting to speak to some suit in person in a bank.
What about charges?
I don’t get charged any more for arranging the mortgage through this broker. They get their commission from the bank. So it looks like my bank pays for its bad service. That’s what I call karma.
Sent from my iPad
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- Can I use maintenance payments to get a mortgage
- Our expert’s blog on mates mortgages and other mortgage innovations
- Our expert’s blog on low deposit mortgages with help from your parents (including the Barclays SpringBoard)
- On the Edge: Our report into Interest Only mortgages
- Advice on managing your Interest Only Mortgage
- How the Government can help
- Mortgages made simple
- The hidden costs of buying and owning a home
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