Why use a mortgage broker? Considering that you can simply head to your local bank or building society when you’re looking for a new mortgage, is there any reason to use an intermediary?
Mortgage brokers can take the stress out of the process and help you to find the most appropriate deal for you. Keep reading for six reasons to use a broker for your next mortgage.
1. Wide choice of products vs going direct to a bank
When you approach your bank or building society for a mortgage you will be restricted by the choice of products that they offer.
An independent mortgage broker has access to a wide range of mortgage products from the whole of the market. They can access thousands of fixed, variable and tracker rate deals from dozens of lenders and so it’s more likely that they can find the most appropriate deal for your circumstances.
Additionally, a mortgage broker won’t just look at the interest rates on offer. They will also take other factors into account, such as booking fees and speed of service, when recommending a product to you.
2. Good quality advice
When a mortgage broker makes a product recommendation to you, they give financial advice. This means that mortgage brokers must have qualifications in order to operate within their field, and they have a duty of care to their clients to give the best advice possible.
Mortgage brokers must justify their decision to recommend products and lenders to you. This means that you can be reassured that you’re getting good advice from a person with professional qualifications.
If you take out a mortgage through a broker and it later transpires that you’ve done so based on incorrect information or an error, you’ll have recourse to complain and seek compensation.
3. Underwriting and criteria know-how
Mortgage brokers aren’t just experts at finding the most appropriate fixed or tracker rate for you. They also have an in-depth knowledge of the underwriting criteria of lenders and so can help you to find a bank or building society that is prepared to lend to you based on your very specific individual circumstances.
Some brokers even have contacts at different lenders and they can talk through your application to establish whether it is something their underwriters would consider.
All this means that you take the legwork out of trying to find someone who will agree the mortgage you want.
4. Saves time and effort
Going to each and every bank on your local high street to find a mortgage can be time-consuming. You may have to undertake multiple interviews with mortgage advisers and complete several application forms.
In addition, each individual lender might want to carry out a credit check on you, and multiple checks can actually harm your credit rating.
When you approach a mortgage broker you will only have to provide all your information once. They can then do the research for you, establishing who is the right lender and which is the right product for your circumstances.
Many brokers will also oversee the process for you. They will deal with the paperwork, liaise with the lender, solicitor and surveyor, and manage your application through to completion.
5. Advice on other financial decisions
As well as arranging your new mortgage for you, a good mortgage broker can help you to make other financial decisions associated with taking out a mortgage.
Many can search the market to find the most appropriate life insurance, Income Protection or Critical Illness Cover for you while others can find you a good deal on your buildings and contents insurance.
6. Reviews and long-term relationship
Your mortgage could last for 25, 30 or even 40 years. And, it’s unlikely that you’ll simply take out a mortgage deal at the outset and leave that to run for the full term of your mortgage.
When you use a mortgage broker you’re developing a relationship that could last for the entire length of your mortgage. They will regularly review your arrangements and get in touch with you to look at your options when your fixed rate or tracker rate deal is ending. They will also be on hand to help you if you decide to move home at a later date.