For many people, the prospect of securing a financial product as hefty as a mortgage can be quite a daunting decision. As a result, more and more people are starting to veer towards mortgage brokers as opposed to going directly to their bank. In fact, over 60% of mortgages nowadays are sourced through a mortgage lender, simply because it is such a huge task to tackle on your own. After all, this is a financial commitment that you will be locked into for a big part of your life. You need to get it right.
What Is The Purpose Of A Mortgage Broker?
A mortgage broker acts as a go between for both the borrower and the mortgage provider. They serve the borrower, and have their best interests at heart. It is their job to ensure that the best possible mortgage deal is secured based on the individual circumstances of the borrower.
In the past, many banks refused to work with independent mortgage brokers, and instead starting offering their own ‘financial advisors’ to assist customers with obtaining mortgages. The result was that it was very difficult for customers to secure a truly great deal, because they would always be steered in the direction of the banks’ own products.
Changes to the UK’s financial regulations in 2014 meant banks were more inclined to work with mortgage brokers. Today, one of the best ways to secure a great mortgage deal that is right for your circumstances is to go through a broker.
Tasks A Mortgage Broker Undertakes
There are some key tasks that a mortgage broker can undertake for you, which can take the pressure off and help you obtain a better deal for your mortgage. These include:
- Assessing your financial circumstances
The 2008 recession led to new rules being laid down by the Financial Conduct Authority (FCA), stipulating that anyone applying for a mortgage needed to undergo thorough interviews about their finances. Such interviews could last two, maybe even three hours, and would have to be repeated with each new lender you approach. Working with a mortgage broker means you only have to go through this process once, and then they can pass these details directly to the lender to get you a decision faster.
- Finding a better loan for your situation
Independent mortgage brokers maintain a complete overview of the current lending market, and can therefore recommend deals based on your individual needs and circumstances. Unlike banks, they are not restricted to a certain suite of products or offers, and their priority is you, the borrower. They work on your behalf to secure the best possible deal, not the one which makes the lender the most money
- Managing the application process
The mortgage broker will deal with all correspondence between the borrower and the lender. Their job is, partly, to ensure that the process is able to move as quickly and smoothly as possible. Those who have never secured a mortgage before will probably be unaware of just how complicated the process is, and how important it is to get every step right. The broker works for you and will hold your hand every step of the way.
- Providing professional advice
The broker wants to be sure that you know what is going on at every stage. They work hard to gain your trust, and will offer knowledgeable, tailored advice to help you make informed decisions. They will not force you to take any particular path, but will guide you gently and expertly to the best deals and solutions for your personal circumstances.
Tackling the world of mortgages can be scary, even if you are not a first time buyer. Borrowers have many hoops to jump through in order to secure a great mortgage deal, and a broker can be just the assistance you need to make it through unscathed. Taking out a mortgage is a huge commitment, and the financial savings and emotional reassurance an expert broker can provide is worth its weight in gold.
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