You probably already have at least some idea of what a mortgage broker does. But, for the avoidance of doubt, this is an adviser who will review available home loans based on your own financial situation, and apply for one for you.
Some work over the phone or in person, others exclusively online. Typically, they take a commission from a lender once a loan has been arranged. They may also charge you a fee – either as a percentage of the sum you borrow or a flat rate.
What are the advantages of using a mortgage broker?
Essentially, a mortgage broker saves you time, since they’ll be able to let you know which providers are likely to approve your application. They also make things quicker by handling some of the admin.
Here are some other reasons to use their services:
Expert industry knowledge
These professionals have a good knowledge of the market, and so can recommend deals tailored to your particular circumstances. Additionally, they can use software which searches for loans more quickly and thoroughly than you would be able to if you were doing it yourself.
Their knowledge also extends to understanding which loan applications would probably not be successful. This isn’t just important in terms of not wasting time – unsuccessful applications can affect future ones.
Equally, they’ll be able to explain anything you don’t understand, including industry jargon and terms.
The right to complain
You may not be aware that if you use a mortgage broker, you are then perfectly entitled to complain if the product ends up being unsuitable for you. (You won’t have this option if you submit your application without a broker’s advice.)
Get a better deal
Mortgage brokers can often access exclusive deals and rates which are not open to the general public. Their special relationship with lenders means brokers can regularly negotiate better interest rates than you would alone. You may even find you get a discount on the lender’s standard variable rate.
Even if your credit score is not the best, with a broker you may still be able to secure a more attractive rate than would be possible by applying directly.
Clearly, the best possible deal is more important than ever at this time of rising interest rates, and can save you a substantial sum over the life of your home loan.
Scouring the whole market
While some advisers only put forward deals available from a particular group of lenders and a bank or building society will only recommend their own products, a whole-of-market broker can assess every loan available to choose the best option for you. Potentially, this could save you a lot of money.
After you’ve found the ideal product
Once your broker has secured the best product for your circumstances, they can help make sure your application is as likely to succeed as possible. And while it’s being considered, they will continue to check the paperwork and hidden small print and to negotiate with lenders. They can also suggest insurance products once you’ve moved – and again they will have access to a broad range of providers.
The business of buying a property can seem confusing or even overwhelming. A mortgage broker seriously relieves some of that burden by allowing you to benefit from their expertise before you make any major decisions, while saving you time and money.
At Mortgage Centre Online, we’re Clevedon-based home-loan advisers with extensive experience of providing high-quality, honest and friendly mortgage and other financial advice you can trust. Get in touch today to learn more about what we could do for you.