Mortgage Broker or Direct for big standard mortgage

[survivalist]

My fixed deal is coming to an end and I'm looking to remortgage.

For the past 5 years we've been with one of the high street banks as the rates seemed good and the product fees were low. The deals from our lender are now poor compared to the market.

Been looking at compare the market and all the deals seem pretty similar. Given that I'm married, both parents working (although my wife is currently on maternity leave) and we have about 50% LTV, will I gain anything from going via a broker? Never used one before but am interested as there seems to be loads of mortgages that are 'broker only'

Also, in terms of speed of arranging a new mortgage, which option would be faster. Keen to get it sorted asap as our deal ends fairly soon.

Thanks in advance.

[James_B]

I’m not going to advise you, but I’ve just gone direct myself on a seven-figure mortgage with HSBC and will be getting under 1.5% interest only on a two year fix.

70% ltv.

[Jockman]

If your current deal ends you will no doubt default to SVR which isn’t the end of the world and so shouldn’t compel you to rush into an unsuitable deal.

I too use HSBC and am happy with them though their application process can be anal.

No harm in asking a broker as they will have access to deals you may not have access to. Not sure if brokers use HSBC as it seems to only sell its own products.

[Sarnie]

Jockman said:

If your current deal ends you will no doubt default to SVR which isn’t the end of the world and so shouldn’t compel you to rush into an unsuitable deal.

I too use HSBC and am happy with them though their application process can be anal.

No harm in asking a broker as they will have access to deals you may not have access to. Not sure if brokers use HSBC as it seems to only sell its own products.

Only select brokers can use HSBC, of which we are one

And yes, their system and processing is horrendous............great rates but a torturous process........"You said the client spends £25pm at Costa, but their bank statement shows they spent £35 at Costa last month??"............Uggghh.

[Sarnie]

survivalist said:

My fixed deal is coming to an end and I'm looking to remortgage.

For the past 5 years we've been with one of the high street banks as the rates seemed good and the product fees were low. The deals from our lender are now poor compared to the market.

Been looking at compare the market and all the deals seem pretty similar. Given that I'm married, both parents working (although my wife is currently on maternity leave) and we have about 50% LTV, will I gain anything from going via a broker? Never used one before but am interested as there seems to be loads of mortgages that are 'broker only'

Also, in terms of speed of arranging a new mortgage, which option would be faster. Keen to get it sorted asap as our deal ends fairly soon.

Thanks in advance.

It can swing both ways.

There are some excellent broker only lenders (Atom bank for example) who's system is the future......we are seeing offers issued for remortgage in days rather than weeks.

There are a couple of lenders that don't accept business from Brokers also but then all of those also have intermediary sister firms anyway.

Using a broker is no different to sourcing any other professional or trades person.......a good one can be worth their weight in gold......but naturally there are bad ones out there too..........use one that others can vouch for

[survivalist]

Thanks for all the replies. I guess the main thing I can't figure out is whether I'd be likely to get a more competitive rate or whether my circumstances are so mundane it'll likely not make much difference. The process last time was OK, although it seemed to take a long time.

[Sarnie]

survivalist said:

Thanks for all the replies. I guess the main thing I can't figure out is whether I'd be likely to get a more competitive rate or whether my circumstances are so mundane it'll likely not make much difference. The process last time was OK, although it seemed to take a long time.

You said that you need to sort it out quickly.

You also said that the last time you did it, it took a long time.

Using a broker isn't just about beating the market and getting the cheapest rate, although it can pan out that way. If it was, then comparison sites would have put brokers out of business ten years ago.

If you have a target completion deadline, a good broker will utilise their contacts and help you get it over the deadline in the required time frame. Even starting from choosing the right lender to place it with.......rates are one thing......but if HSBC are at 1.50% and will take 8 weeks to Offer your mortgage but the broker knows that another lender at 1.53% for example, will offer it in 2 weeks and therefore save you from 2 months payments on your lenders SVR, thats added value of a different kind..........it's not all about the headline rate.

[xyz123]

Your case sounds straightforward. But using broker can be helpful. We were in similar situation last year with low LTV. I had pretty much decided what product to get. Then found a broker who was fee free. Filled in two forms, copies of bank statements, payslip and passport. Gave all information on Friday, had offer in hand on Tuesday morning. Cost me nothing and broker got paid £500 fee...

If u r interested, I was looking for a 5 year fix with no exit penalties /overpayment restrictions . Found a deal with Coventry building society, rate was almost on par with HSBC and all sorted quickly..