Choosing a mortgage broker that suits your needs is a huge decision when purchasing a house!
Moving house can be stressful, by selecting a good mortgage broker you can do a long way to reducing this stress.
There are many different mortgage brokers to choose from.
Some are self-employed independent advisors whilst others work for large intermediaries on a regular payroll.
All, however, should give you excellent advice and recommendation as part of their service.
In this article, we hope to shine some light on the important services that mortgage brokers provide.
By better understanding what benefits these brokers offer, you will be able to take full advantage of their expertise.
So, why could consulting with a mortgage broker have a positive impact on your buying journey?
What Do Mortgage Brokers Offer?
Unless you are up to date with the movements of lender markets, policy changes and criteria you should absolutely invest your time in speaking to a mortgage broker.
Mortgage brokers exist to steer you away from the wrong, banks, schemes, and traps.
Ultimately, they are there to give you their expert advice and allow you to listen to their recommendations.
Going directly to your bank may feel cosy, like an old chair you are familiar with, as you feel like you know what service you will be receiving.
However, that decision could be detrimental.
Not approaching a mortgage broker could leave you majorly out of pocket, frustrated in the process and ultimately being asked to choose what you ‘want’ without providing any advice!
Here are some top tips to consider when choosing a mortgage broker:
Choosing Trusted Brokers
Use a broker that is part of a large network.
These brokers are likely able to tap into genuine exclusive rates that banks will offer up to encourage more applications.
Typically, brokers make up around 77% of all mortgage lending in the UK.
Banks want to keep brokers happy by offering ‘no where else’ deals.
These deals beat going direct, meaning that they are a direct benefit to you the customer.
By using a mortgage broker you are able to obtain the best possible deals, which is certainly a huge positive.
How do Brokers Get Paid?
Some brokers operate where lenders pay them a direct commission for their submitted business.
Lenders can tweak how much they pay for business from time to time in the hope that it may encourage more applications.
Look for brokers that are paid the same amount regardless of where they place you be it Yorkshire Building Society or Barclays Plc.
By doing so, you can be safe in the knowledge that their advice and recommendations are always the best options for you, not just for their commission.
What Digital Tools Do They Offer?
When choosing a mortgage broker, it is important to consider what digital tools they offer.
Here are some easy questions you can ask to ensure they are providing you with the best service possible:
- Do they have DocuSign or similar technology to help speed up the signed declaration process?
- Can they share their screen with you to help articulate their advice?
- Does your broker provide a shared portal that you can access to expediate document sharing?
- Will they see you face to face if you need or want to?
All of these areas are important to consider depending on your commodity of time.
Mortgage brokers are being paid to not only advise and recommend but to help you understand and take the stress out of the process.
Your Own Advisor
Too many chefs spoil the broth.
This old adage is well worth considering when choosing a broker.
Will you be dealing the same consultant or advisor throughout or will you be re-explaining your circumstances like ground hog dog?
Having continuity and a solid start to finish relationship with the person organising your quarter of a million pounds worth of lending (for example) should be important!
Feeling like your broker understands where you are coming from and the requirements you have will go a long way to making your experience a much better one.
Be sure to establish if you will be dealing with the same consultant throughout your journey.