Reasons to use a Mortgage Broker
Now you might be thinking we are a little biased in this area, considering we are an independent mortgage broker. However, with our 30 years of experience in working with our clients, we believe using a mortgage broker can make it much easier for you when buying property. Don’t just take our word for it, the market share for mortgage brokers accounted for 80% in October 2017 according to the Mortgage Efficiency Survey – this clearly shows a mortgage broker is an invaluable source for many!
Brokers are experts in the property market
Whether you’re new to buying or are a seasoned veteran, having an expert on your side for impartial advice is extremely valuable. Good mortgage brokers will happily guide you through the buying process and when things don’t go to plan, they are there to help solve the problem.
Most independent brokers aren’t tied to particular lenders and products
If you were to visit a bank for example, they will only be able to offer you their own products. Using a ‘whole-of-market’ broker means they can search all products offered by pretty much every lender on the market to find you the best deal for your circumstances. You will also find that many brokers have special ‘broker-only’ products available exclusively through them.
They can help speed up the process
Instead of visiting multiple individual lenders and completing their endless factfind forms and paperwork requirements, you’ll only need to do this once with a mortgage broker who will then do all the hard work of finding the best deal for you. Not only this, but you’ll benefit from the broker’s relationships with lenders who are more likely to get your application through quicker.
The broker can be held accountable
The mortgage application process can be complex and it is easy to make an error. With a broker, you will be receiving impartial financial advice and support throughout the application process. This means that if an error occurs, the broker will be accountable and when you receive mortgage advice from a broker, they have a duty of care to you. They must recommend a suitable mortgage and be able to justify why the mortgage they have chosen fits with your circumstances.
Brokers specialise in more complex types of loans
Most banks generally won’t have the skills to handle complex or special requirements which is why it makes much more financial sense to use a broker. From buy-to-let mortgages to bad credit mortgages, brokers will have the expertise to understand your circumstances and find the right deal for you.
Don’t be put off by a fee
Some argue this is a reason not to use a broker, yet with the years of experience that comes with an independent broker, the personal service, impartial advice, handling all of the paperwork for you, searching the market, dealing with lenders and in some cases, estate agents and solicitors, being compliant with the frankly never-ending rules of the FCA(Financial Conduct Authority) and being there for you at every step of process, why wouldn’t you use a broker? It’s a time-consuming process and with most brokers charging fees of under £400, this represents extremely good value for the expertise and help you will receive. In most cases, the fee actually is negligible due to the money a broker saves you in finding a great deal on your mortgage. Take this example from one of our clients who were looking to remortgage; our client’s special rate had ended and they were paying their lender’s standard variable rate at 4.99% with mortgage payments of £1,082 per month. After a mortgage review, we secured a new rate of 1.88% on a two year fixed rate with new mortgage payments of £875 per month. A total cost saving of over £4,300 (including all costs and fees over two years based on a repayment mortgage of £160,000 for 18 years).
And don’t forget, most brokers will offer you a free no obligation consultation, so it makes sense to discuss your plans with a broker first so they can give you an idea of what they can do for you.