Should you use a mortgage broker in Ireland?
If you’re on the hunt for a new mortgage, finding the right home loan takes time & effort. Here’s how a mortgage broker could save you time and money.
What is a mortgage broker?
They’re qualified mortgage experts who can help you find the right mortgage for your needs. Instead of applying directly to each bank, a broker can compare products, handle paperwork, and advise on which lender suits your situation.
They’re also known as intermediaries or mortgage advisers.
Mortgage brokers are regulated by the Central Bank of Ireland and authorised to:
Types of broker in Ireland
Some brokers are tied to one specific lender, whereas others have access to a panel of lenders or the entire market.
- Tied broker – works with one lender only. This means you could miss out on deals that are cheaper or more suitable for your circumstances.
- Multi-agency broker – offers a selection of lenders from a panel.
- Independent broker – covers the whole market and must charge you a fee (no commission).
What’s the difference between a mortgage broker and a lender?
While a mortgage broker acts as an intermediary, matching buyers with home loans, a lender issues the loan directly to the customer.
Brokers can help you compare different lenders and choose a deal that suits your needs, but you can also opt to shop around yourself and use a broker to support your application.
How can a mortgage broker help?
A mortgage intermediary can not only help you find the best mortgage rates, but can also support you through the application process.
A broker can help you:
Special situations where brokers can help
- First-time buyers - for instance, help to navigate Help to Buy and First Home Schemes
- Self-employed borrowers - for presenting potential options and guidance on documents required
- Refinancing, equity release and switching - to make the right choice and find the best deal
- Self-build mortgages - help with staged drawdowns and extra documentation needed
- Non-resident buyers - securing a mortgage while living abroad
Can you use a broker to switch your mortgage?
Although mortgage brokers are commonly used by first time buyers to help them through their first house purchase, switchers and home movers can also benefit from using a mortgage broker, especially if you’re self-employed or have unique circumstances.
If you prefer to go it alone, our Complete guide to mortgages can help you on your mortgage journey, whatever your financial position.
Can brokers get you a better rate than banks?
It’s not guaranteed, but they often have access to exclusive deals or cashback offers that you may not find through a bank or a Google search.
Can a broker guarantee mortgage approval?
No, they can’t promise that your application will be successful. Mortgage approval depends on the lender’s criteria, but brokers can improve your chances by supporting you with your application and ensuring you have all the correct documentation.
Mortgage broker regulation in Ireland
All mortgage brokers in Ireland must be authorised by the Central Bank of Ireland. You can check any broker’s registration on the Central Bank Register.
Brokers must:
- Disclose how they are paid and any conflicts of interest.
- Provide a European Standardised Information Sheet (ESIS) outlining loan details.
- Act in your best interests under the Consumer Protection Code.
If something goes wrong, you can escalate complaints to the Financial Services and Pensions Ombudsman (FSPO).
What qualifications does a mortgage broker have?
All individuals who advise on Mortgages are now required to hold a qualification such as the QFA (Qualified Financial Adviser). You can see a full list on the Central Bank of Ireland website.
The QFA is a professional designation that meets the Central Bank’s Minimum Competency Code (MCC) requirements for selling and advising of retail financial products set out in the Code.
There are restrictions on the use of the terms ‘broker’ and ‘independent’ and mortgage advisers have to comply with a set of rules and standards.
How much does a mortgage broker cost?
Some brokers charge a fee for mortgage advice or to arrange your mortgage application. The fee may be based on a percentage of the mortgage amount or charged at a flat rate, typically 1%.
However, many online brokers are free because they get a commission from the lender and don’t pass on charges to the borrower.
Shop around and find out how they are paid and/or what each broker will charge. They should be able to tell you the full cost upfront.
How mortgage brokers are paid in Ireland
Brokers can earn money in two ways:
- Commission from lenders: Typically up to 1% of the mortgage amount, but can vary, so on a €250,000 mortgage, 1% commission equals €2,500. Some commissions have clawback clauses if the mortgage is repaid early.
- Fees charged to you: Flat fees usually range from €250 – €750, especially for complex applications. Truly independent brokers charge fees only and do not take commission.
Always request a written breakdown of all fees and commissions before proceeding.
Is it cheaper to get a mortgage through a broker?
Mortgage brokers have access to a wider range of products, which could mean you get a cheaper mortgage deal.
Even if you have to pay a broker fee, the savings you could make by getting a cheaper mortgage rate could dwarf the cost of using one.
Is it worth using a mortgage broker?
A mortgage adviser can guide you through a complex and time-consuming process, but if you’re confident in finding the best rates and securing a mortgage on your own, mortgage advice may not be necessary.
Here’s the pros and cons of using a broker to help you weigh up your choices.
Pros
Cons
Some lenders will only accept a mortgage application from a mortgage broker or only from a mortgage broker appointed to their panel.
Choosing a mortgage broker
Before you sign up with a broker, find out:
- If they’re regulated and authorised by the Central Bank of Ireland
- If they have access to the whole of the market, a panel of lenders or are tied to a lender
- If they earn a commission or charge a fee?
- What (if anything) you will be charged, and get it in writing
Finally, check out reviews and recommendations via social media, their website or word of mouth.
A broker unwilling to disclose fees, pressuring you to use one lender, or promising guaranteed approval should be avoided.
How to find a mortgage broker in Ireland
There are several ways to find a mortgage broker; you can use the Brokers Ireland’s website to find a broker nearby.
Your mortgage lender may provide you with a choice of brokers in your area.
Alternatively, you may find a mortgage deal on a comparison website that’s arranged by a broker or you can search for a free online broker.
Remember, some brokers offer a face-to-face service, whereas others operate purely online.
How do you check if a broker is authorised by the Central Bank?
You can check the Central Bank of Ireland’s Register of Mortgage Credit Intermediaries.
Online brokers will state their authorisation on their website. You will usually find the regulation notice at the bottom of the page.
Mortgage broker FAQs
Can a broker help me get a mortgage with bad credit?
Yes, mortgage brokers have better access to specialist lenders, so if you have bad credit an adviser could help you secure a mortgage that caters for people with a poor credit score.
Find out more about borrowing with a poor credit rating in our guide How to get a mortgage if you have bad credit.
Can I get a mortgage if I'm self-employed?
Yes, and getting your mortgage through a broker can be the best option if you’re self-employed. They can access a wider range of lenders and are more likely to find a mortgage tailored to your financial circumstances.
Read more about how to get a mortgage if your’re self employed in our helpful guide.
Can a mortgage broker help me find a self build mortgage?
Yes, if you’re building your own home, an adviser can help you find the best rate self build mortgage. If you’d like to know more about self build mortgages, our Guide to self build mortgages in Ireland is full of useful tips.
What is an Approval in Principle (AIP)?
It’s an agreement from a lender showing the amount they are willing to lend you, based on information you’ve provided and your credit record. An AIP may also be called a Mortgage in Principle (MIP) or a Decision in Principle (DIP).
An AIP is free and it’s usually valid for six or 12 months. Find out more in our guide, How to get a mortgage Approval in Principle in Ireland.
Compare mortgage rates & deals
Find a range of first time buyer and home mover mortgage deals in Ireland using our comparison.
