Should You Let An Estate Agent Find You A Loan?
With fewer homeowners looking to invest in the property market, many estate agents have begun supplying mortgages in an attempt to boost their commissions – yet have they really got your best interests at heart?
The average broker who is connected to an estate agent receives commissions of between 0.25% and 0.5% based on your mortgage value; however the quality of their service is not as high as they claim according to leading property advisors.
In fact, many believe that if estate agents are doing any of the following then they are not offering you the best deals:
- You must use their broker to buy your desired property – despite what they want you to believe, you are not obliged to get a loan from them through their broker in order to invest in property.
In fact, should you take out a mortgage with them, they will know everything about your financial situation meaning they can structure your loan based on the max. you can afford and not on what is suitable for you. - How hard are they working – many brokers who work alongside estate agents will often only search for loans through a small number of banks instead of searching the entire market for the best deals. So if their service isn’t ‘whole of market’, you are not getting the best deal.
- How much are their fees – whilst most brokers who work with estate agents earn a commission from the lender, many will still try to charge you a fee.
The average is a flat fee of £400+ VAT but there are some who base this fee on a small percentage of your loan. But the reality is you don’t have to be charged at all. Most brokers who aren’t associated with estate agents offer ‘whole of market’ advice completely free of charge. - Are you really getting the best deal – certain banks such as HSBC and First Direct refuse to offer mortgages through brokers, instead asking homeowners to make queries through their website. Because of this, it is important that you scout around and cover all your bases. A fee-free broker for instance can help you to review mortgage comparison websites and find the best deals without adding a charge for their service.
Related posts:
- Does The Estate Agents Act Need To Be Amended?
- Gloomy news from UK Estate agents on the UK market
- £10m Cornish country estate Trevarno goes up for sale
- How To Make Money From The Property Market
- August Witnesses Drop In Property Activity
Tags: invest in property, property advisors, property market
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