The Mortgage Clinic: 'Why can't my broker get me the best deals?'

Q. 'I'm currently using a broker to hunt for a £130,000 mortgage, but the cheap offers that I've seen advertised on the web aren't available via him. Why not? Should I carry on employing him or go direct to lenders instead?' JT, Cheshire

A. In today's nervy mortgage market, a broker's skills can be reassuring. But as you've discovered, many are being frozen out by banks and unable to offer customers the best deals. Last week, research by Moneyfacts found that the top 13 deals for a two-year, fixed-rate home loan (based on £150,000 mortgage) were only available direct from lenders.

Why? Thanks to the credit crunch and higher cost of offering home loans, lenders have been bombarded with applications. Too much business threatens their profits, so they're now clamping down on deals via brokers – to whom they would also have to pay expensive commission. This leaves you in an uncomfortable position; to get the best of both worlds, you'll have to do double the work. "Borrowers who want the best deals have been landed with not only with the research, but possibly all of the administration of arranging their mortgage," says Katie Tucker, of mortgage broker John Charcol.

Be under no illusion – it can be a mountain to climb. First, ask two brokers to find you the best suitable deals. Don't worry if they're fee-charging: "Brokers are not paid until completion, so you won't have to pay anything to simply seek their advice," says Melanie Bien, of broker Savills Private Finance.

Second, scour best-buy tables like moneyfacts.co.uk and moneysupermarket.com plus lenders' own websites for the deal that fits your finances. Now the hard part: do you opt for the broker's more expensive best offer but benefit from their administrative support? Or go it alone and grit your teeth for potential hassle with valuers, solicitors and lenders for six to eight weeks? If the former, you've no worries as the job will be in brokers' hands; but if the latter, ensure you know what you're buying inside out. The biggest danger of not using a broker, says David Hollingworth, of broker London & Country, is you may find a cheaper rate but take out the wrong mortgage for your circumstances – say, a dirt-cheap, five-year fix when a pricier two-year deal might have given you better flexibility. And if your circumstances aren't straightforward, adds Bien, "you may also struggle with the limited range of products on offer from a high-street bank". Given the market conditions, you need as much help as you can get – and a broker looks like your best option here.

Send us your questions and you could receive £50 to spend at Amazon

Foxed by jargon? Worried by the credit crunch? Email a question to mortgageclinic@independent.co.uk. We will not reveal your identity, and we cannot give specific advice. If your question is printed, you'll receive a £50 voucher from Amazon.co.uk, so you can kit out your home with anything from a lawnmower to an espresso machine. www.amazon.co.uk/homeandgarden

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