For many people, getting a mortgage and buying a property is one of the greatest financial decisions and investments a person might make in their lifetime. Ensuring you have secured the best mortgage available to you that suits your specific criteria and situation can be daunting if it is your first time. There is often lots of jargon and maths involved which can be pretty confusing at times. This is why it can be really helpful to use a mortgage broker to help you with this process.
Mortgage brokers have a vast knowledge of the mortgage market and a good broker will also have access to a broad range of financial products within this market to offer you.
They will search for the right product for you, advise you and also communicate throughout the process with the lender on your behalf. This can often make for a more comforting experience. It is also useful to consider using the services of someone who specialises in the experience which you are about to embark on for the first time. In this instance, a mortgage broker could be a great fit for you.
What is a mortgage broker?
A mortgage broker, or adviser, is licensed and is regulated by the Financial Conduct Authority (FCA). A mortgage broker is a professional with capabilities to work with the borrower and the lender to secure a mortgage offer.
In short, they will arrange your mortgage for you. A broker knows how to quickly scan the whole market and has access to a wider range of mortgage products, which means borrowers may be able to secure more favorable interest rates.
There are three different types of mortgage broker:
1. Tied brokers - recommended to you by a particular mortgage lender and offer deals only from that one mortgage provider.
2. Multi-tied brokers / 'whole of market’ - offer a range of mortgages from a panel of mortgage lenders.
3. Independent brokers - scan the entire mortgage market to find the best product for you.
Why would you use a Broker?
Here’s our top reasons why you should consider using a mortgage broker:
1. Access to the best deals
Every broker has access to mortgages across the market. They will scour the market for the best deals, recommend the most appropriate for you and secure a lower interest rate which can potentially save you money in the long run. While some brokers do charge a fee, the payoff is usually outweighed by the great rates and deal secured for you by the broker. In short, it is a fee worth paying for the long-term gain of being on a great mortgage product for your property.
They usually offer a great deal of information about lenders, repayment terms, and administrative fees or other fees. All of this extra information keeps you informed so you can make the best decisions throughout the entire process.
Your broker will work out with you exactly what you can borrow and devise a plan for repayments that best suit your situation and lifestyle.
2. Convenience
While getting a mortgage can be exciting, it can be a long and draining process too. A mortgage application can take a long time, especially in the current market. If inaccuracies are found on the application, it can slow down the process. However, a mortgage broker will know the requirements needed and will review your application first before it’s submitted, that will expedite your application and will save the hassle of dealing with these details.
One of the benefits of hiring a mortgage broker is that they will do all the work for you. Not only could they save you money on a mortgage deal, but they are very helpful when it comes to processing the deal. A good broker knows the lenders well, what they require and generally knows the process inside out so they can ask you for all the information upfront and help make the process as slick as possible.
3. Quality Expertise
Mortgage brokers are experts in their fields. Before brokers offer you advices on mortgages, they must go through an extensive training process for them to be certified and qualified. While we always encourage people to do their own due diligence, you will definitely feel like you can trust your broker if they are reputable and feel confident in their decisions and advice.
The mortgage application process might differ from lender to lender. Having an expert who can explain things clearly and understands best practice can be advantageous and invaluable.
A broker also sees which loan you’ll be able to get accepted and which lenders will reject your application. They also know which lenders turnaround mortgage applications quickly and which are currently struggling with service. All of this extra information will help to save you time and relieve stress.
4. Makes applications easier & a little less stressful
Once you’ve decided on a mortgage product, you can leave the rest of the tasks up to your broker. You don’t have to spend time completing various paperwork and application requirements – brokers will manage the whole process for you!
They can make your application process easier and faster plus; you will only be needed for the confirmation of details and final signing and of course, reading through all the terms and making sure you are comfortable and happy.
5. Ongoing help
Brokers will help and reassure you throughout the process. They provide ongoing support and consultation. You might have few questions in mind about how to make a smooth transaction or any other concerns you want to discuss with them. They will also review your conditions and assess if your borrowing structure is still meeting your current needs.
6. Loyal advice
With a mortgage broker on your side, they have a responsibility to provide the most suitable financial advice for your financial situation. They offer unbiased advice on a wide range of lenders and subsequent mortgage products and want to ensure that you are satisfied with their financial service.
Final thoughts…
The mortgage market is vast. Shopping around for the best mortgage option on your own can be time consuming and frustrating. If you also have very little understanding of the market and terminology, it can be daunting on your own. An individual will usually only have access to offers from high-street banks when they are searching on their own and this is only a small percentage of what’s actually available to people.
Therefore, using the service of a mortgage broker makes a lot of sense. The same way in which you would chose a solicitor or a surveyor to carry out tasks to help you get a job done well, choosing a mortgage should be treated in the same way. An expert is usually always the best person to seek advice from and going solo can be a bad decision in the long run.
