The Advantages Of Using A Mortgage Broker

A Mortgage broker acts as a middle man between you, the borrower, and the lender and can be an invaluable source of knowledge and expertise.

A mortgage broker’s role is to help and guide you through the mortgage application process.  This involves explaining the various rates and options available to you, comparing all of the various lenders and making recommendations, helping you to complete the application, packaging the application for the lender which results in a faster mortgage offer and liaising with the lender and your solicitor to ensure a smooth transaction.  More than 50% of all mortgages in the UK are submitted by brokers acting on behalf of their clients. 

Mortgage brokers can be whole of market whereby they are able to offer advice on products from all lenders in the UK or tied advisers where they offer products from a selection of lenders.  The broker should always tell you their status when you meet them.

Mortgage Broker Advantages

  • Access to the whole of the market in most cases
  • Qualified advice.  Mortgage brokers are regulated by the FSA and have to not only pass exams to be able to give advise but also demonstrate a continued professional development to the FSA to ensure that their knowledge base is always up to date.
  • A mortgage broker can save you a lot of time.  Because mortgage brokers know which lenders have the best products, fastest underwriting, best customer service etc they are able to get you your mortgage offer quicker than you going direct to the lender in most cases.  Mortgage brokers also help in completing application forms which most people find very time consuming.
  • A mortgage broker can save you money.  As a broker is able to access the whole of the market (in most cases) they are able to find the best rates but more importantly they have the tools to be able to find the best product that matches your needs. 
  • Mortgage brokers are able to access the whole of the market but brokers are also members of exclusive mortgage clubs which offer rates not found on the high street.  These clubs can represent an excellent source of business to lenders so lenders are keen to offer competitive rates for that business.

Mortgage brokers can and do help but they are middlemen and some people like to cut out the middle man in an effort to save time.  As brokers we have seen plenty of cases where clients have been to see their bank or building society direct only to be told that they did not qualify for that product or they did not meet criteria.  Would it surprise you to find that we were able to go back to the lender and place that rate?  Brokers know how the mortgage market works and they know how to package an application and what the lender is looking for.

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