What are the benefits of using a mortgage broker?

May 10, 2023
The Mortgage Centre Clevedon team photo

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.

 

Related Posts

The Average Cost of Moving Home in the UK

The Average Cost of Moving Home in the UK

What is the average cost of moving home in the UK? If you’re considering moving house, it’s essential that you understand all the costs involved and how much these are likely to be, so that you can budget accordingly, compare quotes and assess how you could...

Can I have more than one mortgage?

Can I have more than one mortgage?

People often ask us whether it’s possible for them to hold more than just the one standard mortgage at the same time. The short answer to that question is yes, it is definitely possible to have more than a single home loan at any one time. In fact, there’s no legal...

Five tips for increasing the value of your home

Five tips for increasing the value of your home

UK property prices saw a surprising, if modest, rise of 0.5% in April, following months of decline, according to figures from one of Britain’ s biggest lenders, the Nationwide. So a house-price crash has certainly been avoided. And if this news, plus the (mostly)...

What is a property chain?

What is a property chain?

You have almost certainly heard of a property chain – but would you be able to explain to someone else exactly what one is? Do you understand how chains work, or how you can manage them? In a nutshell, this circumstance arises when a group of property sellers and...

Can I Get a Mortgage with Bad Credit?

Can I Get a Mortgage with Bad Credit?

Bad Credit History & Mortgages If you’re one of the many people in the UK with a history of bad or adverse credit, you may automatically assume that you’ll be unable to find a mortgage. Whilst it can be harder to find the right mortgage product, it’s certainly not...

How much deposit do I need to secure a mortgage?

How much deposit do I need to secure a mortgage?

If you’re considering purchasing your first property and haven’t previously taken out a home loan, you’ll need to know how deposits work, including how much to save. Why do I need a mortgage? As you’ll appreciate, lenders need a deposit as security or assurance on the...

Share This

Share This

Share this post with your friends!