When it comes to buying a house, arranging a mortgage is one of the least enjoyable parts of the process. In the past, the most common way to get a mortgage was through your bank. However, this is not the case today, where using a mortgage broker has become increasingly more popular. This makes the mortgage market complex with hundreds of lenders offering thousands of mortgages. As a result, you need to consider different rates and different types of repayment options as well as reviewing the fees associated with each mortgage. What’s more, you need to do all this while you’ve got all the other jobs related to moving house to contend with!
A mortgage is one of the biggest financial commitments you’re likely to make. It therefore makes sense to seek out the services of an expert to help you make the best decisions for your circumstances. This is where a mortgage broker can help.
Unlike your bank’s mortgage specialist, who can only offer you the products of that bank, you should find a mortgage broker that has access to a variety of mortgage products from different lenders such as credit unions, trust companies, small banks, and yes, the bigger banks.
The job of a mortgage broker is to match their customers with the most suitable mortgage product available. They have received specialist training and are qualified to give recommendations based on the financial situation of their clients.
Mortgage brokers are regulated by the Financial Conduct Authority (FCA). This means that if you are given advice by a mortgage broker that is not suitable, you can claim compensation. When choosing a broker, it’s important always to check they are FCA certified.
An experienced mortgage broker will know the market inside out, and it’s this expert knowledge that can save you both time and money.
The first step in the process is to sit down with your broker and review your current financial situation. They will ask to see details of your monthly incomings and outgoings as well as details on savings and any other financial commitments you have. By building up this picture of your finances, they can then review the mortgage market and provide recommendations that best suit your needs.
Three Benefits of Using a Mortgage Broker
Choosing to engage with a broker gives you three big advantages versus arranging a mortgage yourself.
Expert Market Knowledge – Mortgage brokers have an excellent grasp of the market and lenders. They will be able to match their clients with the most suitable lenders to ensure a high chance of the mortgage application being accepted. Some kinds of broker work quite generally in the property market, however others may specialise in certain kinds of property. For example, those with a very high budget could utilise the services of a Mortgage Broker who specialises in high value mortgages that are not widely available, whereas a business owner might seek out a broker dealing with commercial properties primarily. Finding a broker who aligns with your interest will ensure you get the most out of their intimate knowledge of the market.
Broker Only Deals – Most lenders do not publicise all their mortgages to the general public, very often deals which offer the best rates are only available through a mortgage broker. Many specialist lenders don’t work directly with the public at all, preferring to operate through brokers exclusively. By working with a mortgage broker such as Elementary Mortgage Solutions, you gain access to the whole market.
Less Paperwork – The process of applying for a mortgage is time-consuming and requires lots of form filling and paperwork. A mortgage broker will manage the entire process and keep you updated until your application is approved.
Arranging your own mortgage with your bank is, of course, possible and thousands of people choose to go down this route every year. However, having an expert in your corner is never a bad thing. By working with a mortgage broker, you not only have access to a wider range of mortgage products, you also avoid the tedious application process freeing up your valuable time to spend on other things.
