Mortgages are a lot more difficult than they first appear. Knowing which rate, term, lender, features and insurance are the best fit for you is a time-consuming and complex process.
By using a mortgage broker, you will have a qualified expert looking at the whole of the market and comparing the different deals that are available. They will not only compare the interest rates on offer, but will assess any arrangement fees and find a deal that works for your individual circumstances. Given that they have relationships with the various banks and building societies, they can not only give you an idea of whether your application will be approved, but will also ensure that your mortgage application is processed smoothly and efficiently.
Here, we take a look at the main advantages of using a mortgage broker:
When you receive mortgage advice, your mortgage broker has a duty of care to you. They have to recommend a suitable mortgage and be able to justify why the particular mortgage they have chosen is right for you.
If you go directly to a high street mortgage lender without independent legal advice and end up with a mortgage that becomes unaffordable, there may not be the same level of legal recourse. However, it’s worth noting that under the rules of the Mortgage Market Review, it’s the lender’s responsibility to ensure. Nevertheless, a mortgage broker can still offer a valuable layer of protection.
Qualified, expert advice
When it comes to choosing the right mortgage, there’s a lot to consider. It’s not just a case of finding the cheapest fixed or tracker rate. A mortgage broker must be qualified to be able to give you mortgage advice, whereas you may not get the same level of knowledge by going direct to a lender.
A broker is working for you, not the bank
An independent mortgage broker will look for the best mortgage for you – they aren’t working for the lender, and so will give you sound advice on far more products that are available to you. You’ll receive unbiased advice and can choose from a range of lenders and subsequent products, rather than being restricted to the single range from one lender. A broker will also be aware of little-known lenders that you may not know about when searching for the best deal yourself.
They know the industry
Mortgage criteria has tightened over the last few years, with the Mortgage Market Review being the latest, and arguably widest-ranging, development. It is designed to ensure borrowers can prove that they can afford the repayments, even in the event of a rate rise, and these extra checks have lengthened application times.
That’s why it’s important to know what’s happening with your application and to have someone who can understand all aspects and break it down for you. A broker deals with lenders on a day-to-day basis, so they know what the application process is like for each lender and can tell you which one will process your application with minimal delays.
It’s worth remembering that because a mortgage broker can put a lot of business to a particular lender, they can go some way to exert influence and chase things in a way you just can’t do by yourself, and this can be invaluable should things get held up.
A mortgage broker won’t just advise you about your mortgage, they also look at related life insurance, payment protection and buildings and contents insurance and recommend the best product based on your new mortgage arrangements.
Speak to one of our independent mortgage advisors for impartial help and advice, as well as access to the widest selection of competitive mortgage deals in the UK.
The Mortgage Hub is an independent mortgage advisor serving the greater Glasgow area. Whether you are planning to buy your very first home and need the right first time buyer mortgage, or are looking to re-mortgage due to a house move or to growing family – we understand your journey is so much more than a financial process, it’s a journey to achieve your dreams, improve your lifestyle and achieve your true potential.