Finding the right mortgage can be a daunting task, especially for the first time. That said, it is not just first time buyers that should consider using a mortgage broker; whatever stage of your property buying journey there are good reasons to get expert support. Here I explore the advantages of using a mortgage broker.
Will I Get The Lowest Rate Going Via a Mortgage Broker?
Let’s be clear from the outset. Brokers cannot necessarily access all mortgage deals from all mortgage lenders. There are lenders out there that will only deal “direct” with their customers. However, mortgage brokers do have access to the majority of the marketplace, and can often access exclusive deals that you cannot get by going direct.
I’m a First Time Buyer
No doubt, as a first time buyer you will be doing some research into what steps you need to take. It can seem like a complicated area to someone who hasn’t arranged a mortgage before. Using a mortgage broker you can certainly reduce your stress levels and save you time. Most mortgage brokers will be happy to discuss with you your circumstances and give you guidance free of charge. This will save you calling every lender on the high street.
I’ve Been Turned Down…
Not all lenders have the same lending criteria. I regularly get approached by someone who has been turned down by a lender. This is not always because the client is a “bad risk” it just might be that they don’t quite fit into one particular lender’s tick boxes. By having the knowledge of a large number of lenders’ criteria Mortgage Brokers can often make a square peg fit into a round hole.
It Takes Ages To Get An Appointment With My Bank
Since the dawn of the mortgage market review (MMR) in 2014 there has been lots of evidence that banks and building societies are taking longer to conduct their mortgage appointments, and this has resulted in long waiting times to get an appointment. I met a local estate agent recently who told me that one house he had sold was taking a long time to go through as the purchaser had to wait four weeks to get an appointment with a high street lender. Mortgage brokers tend to be a bit more flexible, often working evenings and visiting clients in their homes to make life easier.
[Tweet “60% of all mortgages are brokered”]
Advice vs. Information
If you take mortgage advice off the Internet you essentially get “information” rather than actual advice. Much of this information will be unregulated so if you later deem it to be “bad advice”, you have no legal recourse. By getting advice, rather than information, from a mortgage broker you are protected under the rules and regulations* that govern the mortgage market. If you have been wronged then you will be recompensed accordingly.
Naturally you will want to find a mortgage broker you feel you can trust. Use your network to search for recommendations. Brokers often say that most of their clients come from word of mouth, spread by other happy clients.
All of the above will hopefully result in you having received a great service. A good Mortgage Broker will listen to your needs, make appropriate recommendations and guide you through the whole process. If this happens and you come out of the experience a happy client then the chances are you will return to them again. Most brokers are more than happy to have an initial chat about your requirements with no obligation.
“Making the wrong choice about your mortgage can cost you hundreds – even thousands of pounds – more than you need to pay,” says consumer rights campaigner James Daley of website Fairer Finance. “And because mortgages are awash with additional fees and charges, it’s all too easy to get tripped up. That’s why it makes a lot of sense to go with a mortgage broker.”
Even experienced mortgage customers will return to using a broker; we are all busy people and do not necessarily have the time to search the mortgage market to find the right deal, find out if you qualify and then spend more time completing the application.
If you have any questions about using a Mortgage Broker leave a comment below.
* The Surrey Mortgage Broker is authorised and regulated by the Financial Conduct Authority.