Why should I use a Mortgage Broker?
There are several reasons why using a mortgage broker might be a benefit. We have helped many people over the years and potentially saved them thousands of pounds and a lot of time.
In this article we are going to cover exactly what a mortgage broker is and how we could help you.
What is a mortgage broker?
As a mortgage broker we are in basic terms, an intermediary who acts as a middleman between you and the mortgage lenders. We have access to the whole of market which allows us to find the right lender to suit your circumstances. This can potentially save you a huge amount of time and money.
There are two main types of mortgage brokers.
- Tied mortgage brokers
These brokers will be closely tied to a specific set of mortgage lenders which means there offering can be limited.
- Whole of Market mortgage brokers
As whole of market mortgage brokers we have access to far more mortgage products and lenders than a tied mortgage broker. This means we are more likely to be able to find you a suitable product which could save you a lot of money in the long run.
Why Should I Use a Mortgage Broker?
As a whole of market mortgage advisor, we can help find the mortgage product that is most suitable for your individual circumstances. Each lender has different criteria and depending on your circumstances it can be tricky to find the right mortgage lender.
If you go direct to a bank they can only offer you the limited criteria and products that they have. This means it might not be the best option available in the market and if you do not fit their criteria then you will likely be turned down for the mortgage.
We will spend the time researching the market to find you the right lender. This can be a time-consuming process, especially if your circumstances aren’t straight forward. The process can include, multiple criteria searches, affordability checks, multiple phone calls and emails with lenders. We will do this for you saving you a lot of time and stress.
A bank will only have their criteria and affordability and if you don’t fit this you will likely be turned down for a mortgage.
At what point should I see a mortgage broker?
There are several reasons why this is a good idea but the main benefit we see is being able to establish exactly how much you can borrow from a potential lender. This can be very important as it helps you identify what value of properties you should be viewing.
The last thing you want to do is find the dream home first to only find out after, that it is not within your reach. It is always best to make sure you can secure a suitable mortgage for the price of the property first.
We will spend time talking through your personal circumstances helping you establish exactly how much you can borrow. This will put you in a position where you know exactly what properties you should be looking at.
What is the difference between a mortgage broker and a bank?
There are a few key differences between going direct to a bank and using a mortgage broker for your mortgage.
- Access to products: One of the biggest advantages to using a mortgage broker over a bank is that we have access to a whole range of mortgage products and lenders. This means we can find the most suitable deal for you. You may fit criteria with the bank but if there is a better mortgage deal available in the market they will not be able to advise you on this. This could potentially cost you thousands of pounds extra over the mortgage.
- Expertise: We are specialists in the mortgage industry which means we have a wealth of experience finding the right mortgage solution for our clients. It is not always about finding the lowest interest rate, your circumstances may be complex and we pride ourselves on helping you find the right lender to suit you as an individual. A bank will only be able to tell you if you fit their criteria or not.
Is it best to use a mortgage broker or a bank?
Using a mortgage broker or going direct to a bank is down to a personal preference. There could be several benefits to using a mortgage broker, but this doesn’t mean that you can’t go direct to a bank and apply yourself.
It just means it might be a bit more time consuming and you might not be getting the best deal for your circumstances.
If you are thinking of applying for a mortgage soon then get in touch and see if we can help.
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.