- 26th April 2020
- Posted by: Mark
- Category: advice
Many people wonder why they should pay a mortgage broker to find a suitable for mortgage, afterall you can do it yourself right ? well not exactly……
Depending on the type of mortgage broker, some lenders will only offer their products through a mortgage lender. This means you could be missing out on some mortgage products which could save you money.
Lets look at 7 reasons why it’s worth using a mortgage broker.
1 . Experience
Mortgage brokers are required to train to certain standard to become authorised by the FCA in order to give you advice on what type of mortgage is best suited to your personal circumstances. If you speak to an mortgage adviser they’ll take certain information needed to assess your circumstances such as income and outgoings. This is to ensure you can afford any product which is recommended to you.
These are safeguards to ensure you are not taking on too much financially. In other words they have your interests at heart. Brokers can assess an application quickly by taking certain details. All details such as income are verified through bank statements and payslips, these are documents are required by the lender as they also have a responsibility to ensure you can afford a mortgage.
With an array of mortgage products and deals it can get overwhelming. Your mortgage broker is there to advise you of suitable options and explain why a particular deal may be more beneficial to you.
2. Can access deals the general public can’t
Most people looking for a mortgage are familiar with the names of the high street banks. Not so many are familiar with the names of specialist lenders because these companies only deal with brokers. You cannot access their range of products as a member of the general public. These lenders do not have multiple high street premises, instead they operate from a central office in many bases but can often have low rates and help people cannot get a mortgage through their bank.
3. Been refused a mortgage, your broker can help
High street banks are happy to offer mortgage mortgages to a particular group of customers. The customer typically has a perfect credit record and has been employed for some time. This is the “ideal” borrower for any lender. However what do you when you don’t fit this criteria. Perhaps you are self employed or have adverse credit, what then ?
Independent mortgage brokers, like Glasgow Mortgage Brokers, can help people who do not fit the “model” customer secure a mortgage. The same financial criteria on afffordability must be met however these specialist lenders essentially give people a second chance. It’s only fair to point out that these lenders will charge a higher rate of interest because the risk to the lender is higher.
In the case of adverse credit for example, after an initial period whereby your credit is likely repaired and in good order, you can then switch your mortgage to a more mainstream lender. The point being these specialist lenders will allow you to get your foot on the property ladder.
4. Whole of Market Search
This is an important phrase. a “whole of market mortgage search” involves searching dozens of lenders and countless mortgage products. This is where the specialist penders who previously mentioned come into play. A whole of market search includes all the high street lenders, as well as those who only offer their product through a mortgage broker.
Once a whole of market search is carried out, the best options for your circumstances are then presented to you. This is not only a massive time saver when looking for a mortgage, it also access lenders you would not normally be in a position to access.
5. Free advice
There is one guarantee, people have questions. The questions can be from first time buyers or those looking to remortgage or even looking for a buy to let mortgage. A mortgage broker is ideally positioned to give impartial advice regarding the best type of mortgage, how does a fixed rate mortgage compare to other mortgage products and a whole raft of other questions you’re going to have. While we offer a free initially consultation where you are free to ask any questions you may have, most mortgage brokers will also offer free advice.
The obvious question is, if you can get free advice, why wouldn’t you take advantage of that ? regardless of who you end up taking your mortgage through, you’ll be in a better position to know what you are looking for.
If you are currently furloughed we can advise as to what may be the best course of action for you, depending what type of mortgage or remortgage you are looking for.
6. Help find a solicitor
When you buy a house or remortgage there are legal aspects such as the deeds to be dealt with. Although a mortgage broker cannot personally deal with these legal matters, they can usually refer an experienced, solicitor that can. Throughout the UK the laws differs on house purchases, by getting a recommendation you can be assured the solicitor is familiar with the laws in your part of the UK. This is an added benefit of using a mortgage broker if you do not have a solicitor already.
7. Speeds up the mortgage aplication process
When you use a broker the information needed is usually only taken once. If you were to apply for a mortgage yourself you would need to submit your information to every lender yourself while making sure you do not make too many applications which may affect your credit rating.
You’d also have to chase up the lenders. Brokers have special systems in place to deal with mortgage applications quickly. Very often you can get an idea how much you can borrow within hours.
When you decide to formally accept a mortgage your broker will do all the chasing up throughout the process until the sale reaches completion.
So there are but a handful of reason why using a mortgage broker makes sense !