Should I use a mortgage broker?

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February 20, 2020

Why should I use a mortgage broker?

Mortgages aren’t as simple as they used to be – with tightened rules and regulations, complicated client situations and a whole load of lenders to choose from its hard and time-consuming finding a lender whose criteria you fit, can lend you the amount you are looking for or has the best rate.

Mortgage brokers have the knowledge and technology to search the whole market to find the best mortgage for you – sourcing the best deal based on your circumstances and budget. There are many misconceptions about mortgage brokers and many people ask ‘Why should I use a mortgage broker?’ so we thought we would let you know both the advantages and disadvantages.

Some people think that it’s easier to go to their bank direct to get a mortgage as they are already an existing customer, however they may not offer the best products for you – banks also tend to have long mortgage appointments and in some cases this could lead to nothing as they are unable to provide you with a mortgage. With a mortgage broker, after just a quick 10 minute chat your broker can go away and source the best products for you, taking into account fees, interest rates affordability and even the speed of the lender if you are looking to secure a deal quickly.

Although some banks provide ‘direct deals’ that mortgage brokers don’t have access to, lenders also offer ‘intermediary products’ which are products that only mortgage brokers have access to, and in some cases are better than those offered from the High Street lenders.

On top of this, mortgage brokers have access to the whole of market and are very knowledgeable about each lender. They know who accepts Working Tax Credits towards affordability, which lenders accept CCJs, which lenders have quick turnaround times for assessing documents and which lenders will lend the most and much more. With all this knowledge and experience they can make sure they source the best mortgage deal for you and provide you with the best advice, going direct to the lender you are only going to receive advice that refer to their products.

Often you are going direct to your bank to see if they can help you, but what you find with high street lenders is that if you have bad credit or any blips on your file, they are not able to help you. Mortgage brokers have access to lenders that are more flexible in their lending approach.
To summarise, we have included a pros and cons list below:

Pros

A mortgage broker can provide advice tailored to your financial needs and can therefore advise you on your suitability to all products
We have access to the whole of the mortgage market and therefore have a greater chance of finding the perfect mortgage for you
Mortgage Brokers are an expert in their field, they know the ins and outs of each lender, the quirky criteria of some lenders or the strict criteria of others making sure you are matched with the best mortgage for you
We search hundreds of mortgage products so you don’t have to, saving you time and stress
At Smarter Mortgages we are not just here for your current mortgage, we are here throughout the whole term of your mortgage, answering any questions you may have, arranging your re-mortgage when your rate comes to an end or just to have a friendly chat
Brokers have access to ‘broker only’ deals

Cons

You may miss out on a direct only deal which are not offered via brokers. However, if there is a direct deal out there better than what we can offer you we are still happy to help you with the application process even though you have to make the application directly.
Most mortgage brokers charge a fee for their service, if they do they are obliged to outline all fees in their Initial Disclosure Document – however at Smarter Mortgage we do not charge a fee for our service as we hope to work with you for the long term, building up customer relations from excellent advice and an efficient and speedy service.

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