6 Reasons why you should use a mortgage broker
Getting a mortgage can be daunting. Buying a home is probably the biggest purchase that you’ll ever make, so it’s important to fully understand your options, get the right advice and feel confident you’re getting the best mortgage for you.
A mortgage broker can search the market to find a lender that meets your needs, and can be a trusted advisor to help you through the process.
You don’t have to use a broker when you’re applying for a mortgage, but here are six reasons to consider it.
A mortgage broker can:
Ease the stress of applying for a mortgage
Give you access to a wider range of mortgages
Help with complex situations
Speed up the process
Consider your wider needs
1. Ease the stress of applying for a mortgage
Applying for a mortgage can be stressful for anyone. But it can be especially stressful if you have any kind of bad credit issues, or a complex income from being self-employed. A broker will guide you through the whole process, from applying to completion.
A good mortgage broker will ease the stress by taking care of admin tasks like researching the best mortgage for you, putting your application together and dealing with the lender. All these tasks can feel like a full time job if you do it yourself.
Mortgage brokers have a thorough knowledge of the mortgage market. They know exactly what to do to complete your mortgage application as quickly and smoothly as possible.
Brokers usually have many years of experience in the finance industry. And have to achieve a mortgage advice qualification certified by the FCA, so you can be assured they will be able to offer you the best advice.
2. Give you access to a wider range of mortgages
Mortgage brokers aren’t tied to any specific lenders or mortgage products. They actually have access to a wider range of mortgages than you would on your own. A lot of mortgages available aren’t directly available to you.
To get access to a lot of mortgages, you need to go through a specialist mortgage broker, especially if you have a complex situation. For example, specialist lenders who are set up to help people with bad credit or who are self-employed don’t sell directly to the general public, they only deal with specialist brokers. Working with a specialist mortgage broker means you’re much more likely to find a lender that is suited to you and your situation.
3. Help with complex situations
Everyone has a different situation that affects how easy they can get a mortgage. Some people with bad credit. Some people are self-employed and might struggle to show a regular source of income to a lender. Lenders prefer people who are really easy to deal with because they don’t have to try as hard to organise a mortgage for the person. It’s harsh, but sadly true.
For example, some lenders don’t accept applications if they have a low credit score, or if they’ve had CCJs in the past, but mortgage brokers have an intimate knowledge of the market, so will know exactly which lender to approach for you.
If you go directly to a bank for a mortgage, they might not have the right experience, but a broker will have the knowledge and the contacts to know how best to deal with your unique situation.
4. Speed up the process
Working with a specialist mortgage broker can really help to speed up the process of applying for a mortgage. For example, they’ll know exactly what paperwork a lender will require for your application, so that you can gather all this at the beginning of the process, saving time going back and forth with the lender.
Brokers also have strong relationships with lenders which can also make the turnaround on your mortgage application shorter.
5. Protect you
A mortgage broker has a duty of care to ensure that you get the best deal possible and that you don’t get a mortgage you can’t afford. This is a legal requirement. If your broker doesn’t recommend a suitable mortgage and can’t justify why they have recommended that particular mortgage to you, then you can complain and claim compensation. So it’s very much in their interest to find you the right mortgage for you, at the best rate.
6. Consider your wider needs
The primary purpose of a mortgage broker is to match you with the right mortgage deal. They’ll also take into account some of your wider mortgage needs too.
For example, they can help you when it comes to arranging life insurance, payment protection, income insurance and other things which you may not realise would be useful.
If you build up a good relationship with your broker, they’ll always be able to help you in the future for any questions, or if you end up renegotiating your mortgage, remortgaging or buying another property. They’ll already know you and your unique situation, so you save time by using the same broker again.
Applying for a mortgage or understanding your options shouldn't be confusing, yet there are just so many myths doing the rounds and it's not easy to know where to turn to get the right advice.
Our calculators give you an idea of what you might be able to borrow, what's affordable and a rough estimate of the kind of property prices you can start to look at.