What does a mortgage broker do that you can't?
There's an awful lot to choosing the right mortgage. It's not as simple as just the cheapest fixed or tracker rate mortgage you can find. 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.
It may be tempting it to cut out the middleman when searching for a new mortgage, but you should think twice.
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, don't take advice, and then end up with a mortgage that later becomes unaffordable, you've only yourself to blame.
A mortgage broker is qualified
Mortgage brokers have to be qualified to give you mortgage advice – a lot of call centre and branch staff aren't qualified to give advice. That said the branch will often be able to arrange an appointment with one of their mortgage advisers - at a time that is convenient for them, but not necessarily convenient for you! And according to recent press reports, because of the new rules you may have to wait weeks!
And then of course a Bank or Building Society can only recommend the products that they sell.
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 know the industry
Mortgage criteria has tightened massively over the past few years.
But a mortgage broker deals with lenders on a day-to-day basis. They know which lenders can process your application without unnecessary 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.
Because a mortgage broker might put a lot of business to a particular lender in a year, they can exert influence and chase things in a way you just can't do by yourself.
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.
They will 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)
The value of advice
Mortgages are a lot more difficult than they first appear. Researching what rate, what term, what lender (and their criteria), what features, what insurance are all time-consuming and complex matters.
Choosing a mortgage is a process far more complicated than simply looking for the lowest rate or the best incentives on a comparison site. The deals shown on these sites are often not actually available or suitable given your circumstances.
An independent mortgage broker takes your whole circumstances into account to recommend a suitable product from the whole marketplace.