The mortgage advisor (broker): what they do, how they are paid and how to choose

What a mortgage advisor does

A mortgage advisor is a person or firm that arranges a mortgage for you. Most people call them a broker. They:

• ask about your income, your savings, your debts and the home you want
• tell you how much the Central Bank rules let you borrow (4 times your income as a first-time buyer, 3.5 times as a mover, and 90% of the price)
• compare the lenders they work with and say which ones are likely to take your case
• put your application together, chase the lender, and deal with the questions that come back
• help with approval in principle (a lender's letter saying what it would lend, on paper) and then the full loan offer
• come back to you when a fixed rate is ending, if you ask them to

A broker does not work with every lender. Some lenders (Avant Money, ICS Mortgages, MoCo, Nua Money and Haven) only lend through brokers. Others (EBS) only deal with you directly. AIB, Bank of Ireland and PTSB do both. So a broker sees most of the market, not all of it. Ask which lenders they work with before you start.

When you need one

You do not have to use a broker. You can go straight to a bank. The difference is what you see: a bank shows you its own products, a broker shows you the products of every lender on their panel.

A broker helps most when:

• your case is not simple: you are self-employed, on a contract, paid in another currency, or back from abroad
• you want an exemption (a loan above the Central Bank limits, which each lender can give to only 15% of its lending in a year)
• you are building your own home, and few lenders do self-build loans
• a fixed rate is ending and you want every switcher offer on one page

The right time is before approval in principle. Once you have given a bank your documents, a broker can still help, but you may have to start the paperwork again. Allow a week to choose one and two weeks for approval in principle.

What it costs

Most brokers charge you nothing. The lender pays them a commission when your loan draws down. That commission is much the same whichever lender you pick, so a broker has little reason to steer you towards one.

Some brokers charge a fee instead, or as well. The Central Bank's Consumer Protection Code says a broker must tell you about any fee in writing before you engage them. Fees run up to about €500 where they are charged. If a broker will not put the fee in writing, walk away.

Two other costs come with any mortgage, broker or not: the lender's valuation (about €185) and your solicitor. A broker does not do either. The table below shows the typical range from our costs config, not a quote.

How to choose

Start with the register. Search the firm's name on registers.centralbank.ie. It should appear as a mortgage intermediary or a mortgage credit intermediary. No entry means no protection: you could not complain to the Financial Services and Pensions Ombudsman, and the firm is breaking the law.

Then ask the questions below. The answers that matter most are which lenders they work with, how they are paid, and who will handle your file. Ask two brokers if you can; it costs nothing and you will see the difference.

A broker near you is handy for dropping in documents, but most work by email and phone now. Many people never meet their broker in person.

If you want to compare rates yourself first, our comparison page lists every lender's rates, sorted the way you choose, with the CCPC's official comparison linked beside it.

What can go wrong

The common problems are small and fixable:

• Missing lenders. A broker's panel does not include every lender. If you want a particular lender, ask whether they can place you there.
• The exemption that never came. An exemption is the lender's choice, never a right. A broker who says you are sure to get one is guessing.
• A slow file. Lenders ask questions, and a broker who does not chase them can add weeks. Ask how often you will hear from them.
• The wrong product. A broker should explain fixed against variable, the overpayment allowance, cashback and its clawback. If they only talk about the rate, ask about the rest.
• Pressure to buy insurance. Many brokers also sell mortgage protection and home insurance. You can buy these anywhere. Ask for the insurance quote as a separate decision.

If something goes wrong, complain to the broker in writing first. If you are not happy with the answer, the Financial Services and Pensions Ombudsman takes complaints about regulated brokers for free.

Asking for a call about your figures

From the mortgage calculator you can ask for a mortgage advisor to call you about your figures. The statement you worked out goes with your enquiry only if you leave the tick on, and you see exactly what is sent before you send it.

You can still choose for yourself:

1. the Central Bank's register at registers.centralbank.ie, where you check that any broker, including the one who calls you, is regulated
2. our comparison page at /compare/mortgage-rates, which lists every lender's rates from the lenders' own pages, sorted the way you choose, with the CCPC's official comparison beside it

You are never tied to the advisor who calls. Ask a second one if you like; it costs nothing.