Applying for a mortgage through a bank vs. mortgage advisor

When viewing a house recently I was advised by an EA (DNG) to look at their partner services GMC Mortgages. I had a mortgage with AIB (sanction in principle) which came to an end as I didn’t secure a property within the time available (3 months + 3 extra months) and now will have to apply for a new mortgage again.

  • I was told by GMC Mortgages they work to ensure they deliver best deal to the client; however I don’t quite understand how I can get a better deal from a bank (if using them) when AIB has currently the lowest rate at the moment in the market. Are there real benefit of using mortgage advisor?

  • Additionally, I was told by GMC Mortgages that they would waive their fee as I was recommended to them through DNG. Is there anything I should be aware in this context?

  • I don’t have any experience with mortgage brokers and I would appreciate if those more experienced pinsters could recommend whether to apply for a mortgage directly as I did the first time (and had not difficulties in securing sanction in principle - although my experience with my bank advisor has not been satisfactory - providing incorrect information on a number of occasions) or try mortgage advisor and get a better deal. Time I need to spend on application and supporting documents is not an issue for me.

Is there anything else I should be aware further down the line (when finding a property and actually getting a full approval)? I only got to the stage of getting sanction in principle.

Many thanks pinsters!

The only difference in using the broker is likely to be that the broker will get a fee off AIB for their efforts. You will end up with the same mortgage just reach it via a different avenue.

Also, not being someone who trusts Estate Agents or their ilk very easily I see no reason at all to have full knowledge of your approval amount out there, potentially exchanged with an estate agent who may be selling you a house.

You have done the work already, just get a refreshed offer from AIB.

If you do use them, check if they can share approval amounts with the EAs given they are “partners”. If they can, it puts you in a lesser position with the agent.

The broker shouldn’t be restricted to AIB, too, so in theory they could get you approval with other banks in case AIB didn’t come up with the goods. That said, I used a broker in 2011 for approval but this time around I went straight to AIB (who I bank with). Last week in fact!

I see no reason for you to use a broker, though. Keep your business between you and your bank.

BoI don’t deal with brokers, nor do Ulster Bank.

For most FTBs particularly it is AIB or BoI who will provide the finance. The others approve for lower amounts and LTV ratios (KBC max 80% for instance)

Hi Folks,

many thanks - your suggestion are very useful. I will go directly with my bank.

I think for a person going through the whole mortgage application process for the first time a broker can be useful in explaining what is needed and making sure the bank has everything they require. But if you have already jumped through the hoops and know the score then no maybe no need. Personally I found this invaluable when I was needed to close a sale quickly and couldn’t afford to have the final approval delayed because I had messed up or forgotten one of the documents.

The broker should have a chinese wall in place so that an EA in the same company doesn’t find out how much you are approved for but who knows what the reality is.