My role, fees and transparency
Mortgage intermediary or direct bank: an honest comparison, and the five cases where I advise against using an intermediary
Intermediary or direct bank: what each brings, what neither can promise, and the five cases where going to your bank alone is sufficient.
An intermediary makes a difference when a file must be defended or addressed to the right lender; on a simple file, the direct bank is often sufficient. It is of little use in five cases: a good offer already in hand, a simple file with a strong banking history, a small amount, a project still unclear, or family financing or cash purchase. Only the institution decides to lend, and the two routes can be combined.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- An intermediary qualifies the file, addresses it to lenders whose current lending policy suits it, and then defends it until the funds are released.
- Only the institution decides to lend: no intermediary can commit to the agreement, the rate, or the timeframe.
- No intermediary covers the entire market, and some banks reserve their best terms for their own clients.
- Five cases make the intermediary of little use: a good offer already in hand, a simple file, a small amount, an unclear project, or family financing or cash purchase.
- Direct bank and intermediary can be combined: distribute the institutions, do not duplicate them, so that no analyst receives the file twice.
A mortgage intermediary makes a difference when a file needs to be defended or directed to the right lender; for a straightforward file, your bank is often sufficient. Here is how to choose, criterion by criterion. The context: profession, fees and transparency; my status is on the about page.
What a mortgage intermediary does, step by step
I assess your borrowing capacity, prepare the file to the analysts’ format, select the institutions according to their current policy, defend the file and follow it through to the release of funds. I assess and direct rather than negotiate.
- The assessment: income taken into account, outgoings, forgotten credit. Approach it alone with the debt-to-income ratio rule.
- The preparation: the documents, their order, a note explaining the particularities.
- The selection of institutions: the right file to the right bank at the right moment weighs more than a rate discussion.
- The defence: non-salaried income, works, profile outside the grid, explained in writing.
- The follow-up through to the release of funds: reminders, notary, preliminary sale agreement calendar.
Its four limits
The decision to lend belongs to the institution alone. A promise of agreement, rate or deadline binds no one.
- I do not decide on the grant: expect a method, a scope, a transparent remuneration.
- I do not have access to all banks: my scope depends on my agreements. Some banks refuse intermediaries: the competitive tender.
- I do not create capacity: if the debt-to-income ratio is too high, it is the project that must change.
- My status fixes my powers: exclusive or non-exclusive intermediary, or mortgage intermediary. Check on the ORIAS register. I am listed there as an intermediary in banking operations and payment services, under the number 26000541.
Intermediary or bank: six criteria
| Criterion | Bank directly | Through an intermediary | What really decides |
|---|---|---|---|
| Terms obtained | Current rate grid, margin of discretion depending on your client profile | Competition between several rate grids, provided the scope is genuine | The quality of the file and the current appetite, more than the channel |
| Borrower insurance | The institution's group contract, proposed by default | Comparison possible with alternative contracts with equivalent guarantees | Your age, your health, your profession: the difference is made there |
| Timeframe | Fast if you are a long-standing client and the file is standard | Depends on the structure and the number of institutions approached | The number of back-and-forth exchanges of documents, almost never the channel |
| Time you spend | Each bank to approach, to convince and to follow up one by one | One contact, one file, delegated follow-ups | The number of institutions you actually target |
| Number of comparable offers | One, unless you repeat the process | Several, within the limit of the partner scope | The rigour of the comparison, not the number of offers |
| Direct cost | No intermediary fee | Possible fees, to be compared with the APR and not the nominal rate | The final APR, fees included |
To decide: the families of lenders and the breadth of a panel.
Five cases where your bank is sufficient
- Your bank has already made you a good written offer. A long-standing relationship is sometimes better protected than a competitive process. Have it compared in a few minutes.
- Simple file, strong history: permanent contract, no credit, down payment, clean accounts. It passes everywhere; the intermediary would save you time, not money.
- Small amount: a flat fee weighs heavily. Compare with the APR (the method).
- Project not yet defined: first calculate the purchase costs. A mandate signed too early uses up its duration.
- Family financing or cash: nothing to intermediate, see the notary.
Bank and intermediary at the same time
This is legal, unless an exclusivity agreement has been signed. However, two applications submitted to the same analyst weaken the file.
Allocate the institutions in writing, in advance. Other options: online bank, online or local mortgage intermediary.
Seven questions for the first call
- Under which category are you registered, and what is your registration number?
- Which institutions do you work with, and which of them currently accept a file such as mine?
- Does your remuneration vary depending on the institution selected?
- What does your mandate cover? Insurance, guarantee, and follow-up until the release of funds.
- What is the duration of the mandate, and how can it be terminated?
- What happens if the application does not succeed? Nothing is due before the disbursement of funds.
- Who will process my file, and to whom should I address my concerns in the event of a lack of communication? This is what is missing from files that become stuck.
The process: the first appointment. Twenty minutes on the phone are sufficient to determine whether you need someone.
Create your file and submit your documents only once.
Sources
Read next
- Mortgage fees in Lyon
- Intermediary fees: how much, who pays, and when Free pricing, bank commission, nothing to pay before the funds are disbursed, impact on the APRC: what a mortgage intermediary really costs, and when.
- Can you put two mortgage intermediaries in competition and approach your bank at the same time? Yes, it is permitted: consulting several intermediaries and keeping your bank, provided you avoid the duplication that causes your application to slip.
- My mortgage intermediary is no longer responding: what to do and how to switch Intermediary unreachable? Normal silences, warning signs, written follow-up, ending the mandate, documents to retrieve: take back control of your file.
All articles on this topic: My role, fees and transparency
Passer au calcul : Borrowing capacity