7 Reasons To Use a Mortgage Broker

You may think that going directly to your high street bank or building society is the quickest and easiest way to secure a mortgage, however we highlight 7 reasons to use a mortgage broker which may save you time and money when arranging your next mortgage, as well as providing peace of mind.

1. Access to Lenders

Believe it or not, there are mortgage lenders out there who will only allow applications from mortgage brokers and NOT directly from a customer.  

These lenders can offer competitive rates (because they are relying on the broker to advise the customer and package the application, thereby saving on otherwise expensive personnel costs).  

Some are also specialist lenders, where a high street mortgage provider would never fit and brokers are crucial here, given complexities with the application.

It is always recommended to use a mortgage broker that is ‘all of market’ or ‘whole of market’ and not restricted to a limited panel of lenders.  That way, you can be confident they will reach all corners of the market.

2. Best / Better Rates

As per the first item, lenders will sometimes ‘shave’ interest rates on products that are offered via mortgage brokers, that would not otherwise be available to the customer.  Again, it is a case of the lender making savings on staff and administration costs which are being picked up by the broker.  

Notwithstanding, it is the job of the mortgage broker to match up the lender and their criteria to your application and find the best overall deal from those mortgages available.

For example, it is not just a case of a headline rate being good – what if that rate were to come with a huge arrangement fee and expensive valuation?   Moreover, what if the lender was to decline the application on the basis it did not ‘fit’ with them based on their lending criteria?  

3. The Constantly Moving Market

Interest rates in the current financial climate have been extremely volatile.  Lenders have been hiking their rates and even (temporarily) pulling out of the mortgage market as applications surge with customers looking to obtain the best rates before they go up further.

Without access to the tools available to brokers, a client looking for the best deal would not stand a chance of succeeding and could potentially lose out as a result.  

Brokers can move quickly and have the know-how and experience to deal with frequent changes in the mortgage market.  They have the ability to not only source the best rates but have instant access to lender ‘portals’, enabling them to rapidly submit applications.

4. Quirky Applications

Gone are the days of perhaps walking in to see your bank manager and obtaining a home loan.  Nowadays, lenders look at every aspect of the application.  This has taken the assessment process down a heavily underwritten route.  

Issues can include: the type of property, the type of customer and their credit history as well as the fact that different lenders have different viewpoints when it comes to assessing mortgage affordability.  A broker knows which questions to ask (by means of a thorough ‘Fact Find’) to obtain all the information needed to match the lender and the mortgage product to the client requirements.

Of course, with the broker having obtained a thorough Fact Find, there is a benefit in returning to that broker at a future point.  Your information can be retained securely and used in the future (up to a point), thereby saving you time and stress when it comes to reviewing your mortgage.

5. What Mortgage Do I Want or Need?

All reputable mortgage brokers will be CeMAP (Certified Mortgage Advice Practice) qualified.  

This official qualification is approved by the Financial Conduct Authority and allows the broker to advise you, the client, as to the best mortgage that suits your needs.  

It is not a case of being nearly good enough, it has to be a mortgage that meets your specific requirements.  The mortgage broker will ask you questions specifically designed to ascertain your priorities and will provide a mortgage recommendation to match.

Often, mortgage brokers will be able to advise on other areas such as Development Finance, Bridging, Protection (e.g.  Life or Critical Illness insurance) or even Equity Release.  

Also, a broker will invariably have good connections to other experts when it comes to property.    

6. The Relationship

In this day and age, personal relationships and the trust that develops is extremely important to many people.  Knowing they have immediate access to someone who knows them as a individual can be invaluable, especially when it comes to understanding complex information or sensitive situations.

Many people go back to the same broker time and time again, having felt looked-after and understood, rather than being just ‘a number’.

7. Take Away the Hassle

Many clients simply want the hassle removed from a mortgage application.  

With busy working and family-related lives, mortgage applicants cannot afford to spend the time going through the often laborious mortgage process.   For example, approaching the lender for mortgage advice will often mean a phone call over two hours in duration, and will require booking perhaps weeks in advance.

A mortgage lender can also be difficult to reach (long hold times on the phone), will invariably not directly involve the person dealing with your mortgage and probably involve a lot of hoop-jumping along the way.

Communication with the broker is mostly by a relatively short phone call and then follow up emails.  Then it is for the broker to do all the leg-work on your behalf.  They will keep you updated on progress, chase things up with the lender and even help with the post-offer process in helping to deal with the conveyancing solicitors, right up to the point of completion.