Whether you’re a first-time buyer, looking to remortgage, or want to move into a new place, getting a mortgage is an exciting and daunting step on your property journey. Seeking the support of an experienced professional, such as a mortgage broker or mortgage advisor, can help you secure the best deal and navigate the process with ease.
A mortgage broker can be a helpful associate when you’re looking to secure the best mortgage deal. They can save you time, money and stress. With their access to various lenders, they will be able to negotiate rates on your behalf and tailor options to your unique circumstances.
If you are wondering how a mortgage broker will be able to get you the best deal on your mortgage, then keep reading or get in touch with Goldmanread today.
Is it best to use a mortgage broker or bank?
When looking for mortgage advice, it’s best to have access to the widest possible range of lenders.
Most brokers will have broad market access, so they can search the entire market to find the best loan options and mortgage terms suited to your needs. The ultimate goal is to save you the maximum amount of money on your loan, so they will consider mortgage rates, lender criteria, and affordability. In addition to finding you a good deal, an ideal broker will also be able to guide you through the whole application process.
However, if you rely solely on a bank loan officer, your search will be limited to just one specific lender. Shopping for a home loan is no different from buying any other product or service. The more choice you have, the better the outcome.
Are mortgage brokers and banks your only option for mortgages?
While mortgage brokers and banks are an excellent place to start and usually the most obvious place to start, they aren’t your only option when looking for a mortgage. You may be able to get access to expert advice from a financial advisor or secure finance directly from a local credit union.
Ultimately, in the UK, the provision of financial advice is strictly regulated by the Financial Conduct Authority. This means that only organisations and independent financial advisors with a certain level of competency can provide consumers with professional financial advice.
Advantages of using a mortgage broker
If you are wondering why people choose to use a mortgage broker, there are plenty of good reasons. Here are a few to consider:
With wide market access to various lenders and their rates, your broker will be able to help you obtain a competitive interest rate that reflects your own particular circumstances.
Affordability is becoming increasingly important as house prices continue to rise. A good mortgage broker will work with you to understand your current financial situation, future circumstances and your intended budget to ensure that when you start your application, you will already have a high chance of success.
When arranging a loan for your property purchase, it is important to be aware of any hidden fees and additional costs involved. The right broker will be open and transparent about any fees involved in the services they provide and should also aim to search the market to find deals with the most competitive fee structure. So, when it comes to purchasing your house, you know exactly what you are paying and when.
Saving you time
It can take many hours to arrange a loan application. Liaising with lenders, surveyors, and solicitors can be time-consuming and draining. A broker will offer a service from start to finish, which means they will liaise with solicitors and estate agents on your behalf right up to the completion of the loan.
Most mortgage brokers have specialist knowledge, which can be helpful when navigating more complex areas of the market, such as shared ownership, equity release, bad credit and development lending. Seeking the advice of an experienced broker will ensure that you have access to the best deals for your circumstances.
Common misconceptions about mortgage brokers
- They only work for the lender – Most brokers will have access to a wide range of lenders from across the market. They are regulated by the FCA, meaning they have to search out the best deal for you from across the range of banks they have access to. A good mortgage broker acts to find the most competitive mortgage deal and the right mortgage lender for their clients.
- They can’t beat my bank’s interest rate – A mortgage broker will have access to 100s of mortgage deals, including those available from your bank. Where they can’t access direct mortgage rates, they will advise you.
- I can find the best deals myself – It’s possible to do most things ourselves, from fixing the car to arranging a mortgage. The issue is that we may not have the technical knowledge to do either of those things correctly. Brokers will often have access to exclusive mortgage rates that aren’t available to the public.
- A broker will charge me an upfront fee – Not all brokers charge a fee, and those that do will usually adhere to a fair fee policy to ensure any fee charged is reasonable. Most often, a broker fee is payable on completion. It’s important to remember that even the bank may charge a fee, and brokers can often access fee-free mortgage products, which means overall, you could save more money in the long run.
Find your mortgage with Goldmanread today
At Goldmanread, our Director, Clive Read, has provided financial advice to happy clients for over 30 years. We aim to provide clients with high-quality, professional advice and a personalised service that suits their specific mortgage needs.
Whether you are a first-time buyer, looking to move home or remortgage, we will guide you through the whole mortgage process, providing impartial advice to help you secure the most cost-effective mortgage rate.
Get in touch with us today and find your perfect mortgage.
Ultimately, when using a mortgage broker, you can tap into their knowledge base and gain personal access to a wide range of providers from across the market. This means that you will benefit from a much wider choice of loans – saving you time and money.
Brokers also have extensive knowledge and experience when it comes to the house-buying process. They will be a touchpoint for advice on everything from dealing with estate agents to finding the right solicitor.
If you want to learn more about whether a mortgage broker can get you a better deal on your mortgage, then take a look at some of our most frequently asked questions below.
Can you go to the mortgage lender directly?
Yes, it’s perfectly possible to approach a bank directly for a loan rather than go through a broker. This could be your own bank or other banks and building societies. Many clients often use their lender’s online mortgage calculator as the first stage of arranging a mortgage.
Borrowers may also look at lender comparison sites to find better deals with lower interest rates.
You need to be aware that not all providers will deal with the public directly – some are “broker only”. This is especially the case with more specialist borrowing, such as development finance and certain types of buy-to-let (such as HMOs). Some of these lenders may offer a broker matching service or will advise you to do your own research to find a suitable broker.
Do mortgage brokers negotiate with lenders on your behalf?
Mortgage advisors are not generally able to negotiate individual interest rates on your behalf but may have some influence with providers if your circumstances are unique. For instance, should you not meet a provider’s standard criteria due to an issue on your credit report or income, they may be open to further discussion with a broker.
How do mortgage brokers have access to mortgage lenders?
The UK mortgage market depends on the mortgage broker having access to deals from mortgage providers. Most banks and building societies no longer distribute their mortgage products via their branch network but primarily through interfaces with intermediaries. This means it is in the lender’s interest to provide the mortgage broker with the widest possible access to their products and services.
A broker will assist the borrower through the full mortgage application process and provide mortgage advice on the most suitable lender or bank.
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