Friday September 28, 2018
What does a mortgage broker do that you can’t? And why should you pay for their services when there are already loads of other costs when moving home or remortgaging?
If you’re asking yourself these questions, it can be more than tempting to cut out the middleman. However, you may want to think twice.
Mortgage advice, from a reputable broker, can be an invaluable service – and here’s why…
An important thing to understand is that when you receive mortgage advice, your mortgage broker has a duty of care to you. They have to recommend a suitable mortgage and be able to justify why the particular mortgage they have chosen is right for you. If their advice is not up to scratch, you can complain and be compensated.
In contrast, if you go directly to a high street mortgage lender, beware. You could end up with a mortgage that later becomes unaffordable and you may not have so much legal recourse.
A mortgage broker is qualified
There’s an awful lot to think about when choosing the right mortgage. It’s not as simple as just opting for the cheapest fixed or tracker rate mortgage you can find!
Mortgage brokers have to be qualified to give you mortgage advice. You may not get that kind of guarantee if you ring up a lender’s call centre. That said, new regulations mean that all call centre staff need to be advisers or must refer you to someone who is. If you do visit a branch you should be able to arrange an appointment with one of their mortgage advisers. Bear in mind that they can only advise you on the products that they offer however!
A broker is on your side
An independent mortgage broker will look for the best mortgage for you. They aren’t on the lender’s side, they’re on yours. They can give you access to far more products than if you went direct. You’d get unbiased advice and would be able to choose from a range of lenders and subsequent products. Here at The Finance Roome we are able to access the whole of the market for you as we are independently authorised – just call us or drop us a line to hear how.
They know the industry
Mortgage criteria have tightened massively over the last few years, with the Mortgage Market Review being the latest development. It’s been designed to ensure borrowers can prove affordability, even in the event of a rate rise. However those extra checks have understandably increased application times.
That’s why it’s so important to stay in the loop – and to have a mortgage broker on your side who understands it all. A broker deals with lenders on a day-to-day basis, so they’ll know what the application process is like for each one. Therefore they can tell you which lender can process your application with minimal delays.
They also know the background criteria that a lender has and can bring this experience to bear when advising you and processing your application.
Then there’s the fact that they can exert influence and chase things in a way you just can’t do by yourself. This can be invaluable should things get held up. We pride ourselves on our service throughout your transaction chasing everyone involved regularly and making sure you know exactly what is happening. Take a look at our website and learn more about the different types of mortgage available to you.
It’s not just about the mortgage
A mortgage broker won’t just advise you about your mortgage. They will also look at any related life insurance, payment protection and even buildings and contents insurance you have. This is often overlooked yet is vital for peace of mind and security.
We can recommend insurance based on your new mortgage arrangements to make sure you are fully protected in the event of:
- Critical illness (such as cancer, heart attack or stroke)
It doesn’t have to cost the earth.
Don’t be put off by a fee
Mortgage advice tailored to your situation is a service. In order for the mortgage broker to be able to offer this service, they need to make money.
They do this by one or both of the following:
- Charging a fee. This could be a one-off fee for advice, or a fee that pays for advice throughout the term of your mortgage (if you need to remortgage, move home, etc.). Our fees are very competitive and reflect the amount of work we out in to helping you as well as your personal circumstances.
- Commission. Lenders and insurers may decide to pay the mortgage broker commission for putting your business their way.
The value of advice
Mortgages are a lot more difficult than they first appear. Knowing what rate, term, lender, features and insurance to get are all time-consuming and complex matters.
A mortgage broker takes your whole circumstances into account to recommend a suitable product. That is why our advice is well worth paying for. After all, this is one of the biggest financial investments you will ever make!