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Five reasons why you might.
Buying a home is an exciting time, but we’d be lying if we said mortgage applications matched the fun of viewing a property, planning your decor, choosing furniture, or exploring the neighbourhood.
For most people, getting a mortgage is what makes buying a home possible. Nonetheless, mortgages are pure paperwork and processes buried beneath a mind-boggling array of interest rates, loan types, lending criteria and internal procedures. There really is a lot to know.
The mortgage market is surprisingly large, and high street lenders really are just the tip of the iceberg. Alongside the banks and building societies you walk past every day, there are hundreds of alternatives, many of whom only deal through brokers.
There’s certainly no harm in approaching your bank to see if they have a mortgage available to you, but by talking to an independent broker as well, you’ll discover if there’s a better deal out there. Think of it as shopping around, without having to shop around.
Still not sure?
Here are five reasons why using a mortgage broker could be right for you.
1. Saving you time
There is so much information available at our fingertips these days. Anything you want to know you just type into Google and up comes the answer. Even if you ask another person a question, they’ll often respond with “Google it”.
If all you wanted to know about mortgages were current interest rates, Google will take you to a comparison site where you can compare them instantly. But that’s rarely all anyone wants to know and to dig deeper means trawling through each lender one by one. Also, comparison sites will indicate what’s out there, but they do not take your personal circumstances into consideration! i.e. income, existing debts, credit history etc.
A broker does this for you, saving you hours (days) of research.
2. Knowing the right lender
Every mortgage lender has its own criteria for borrowers they will accept, and much of that isn’t obvious at first glance.
Some lenders are friendlier than others towards self-employed people; some have better rates but higher fees; others are more flexible around how they approach salaries that include commission and bonuses; and most are restrictive over certain property types i.e. flats above commercial outlets, flats with short leases and Freehold flats.
Mortgage brokers know which lenders are suitable for your situation, and by only recommending a mortgage that you are likely to be accepted for, we reduce the chances of you making applications that get refused, which can have an impact on your credit rating.
3. Saving you money
Think of going to the Apple store, H&M, or even M&S. Regardless of whether they’re cheap or expensive, friendly or formal, or whether they suit your lifestyle, they only have their own products to sell and their only job is to sell their own products.
The same is true of your bank – it can either sell you one of its mortgages, or it can say no.
A broker’s job on the other hand is to find you the BEST mortgage for your particular circumstances. We’re not trying to fit you into a box, we’re looking for a mortgage that fits you.
Brokers also have access to special ‘exclusive’ rates that are not available on the open market or on the high street. We can also often have rates with your bank that are cheaper than you can get direct!
4. Someone on your side
A mortgage broker is working for you. This can sometimes get forgotten in all the hullabaloo of buying a home, but just as an estate agent works for the seller of a property, a broker works for the buyer.
Mortgage brokers are regulated by the FCA (Financial Conduct Authority) and part of their charter is that any advice you receive is based entirely on what is best for you, regardless of whether a lender pays a broker an introduction fee.
So, you know you’re in safe hands and you know that you’re protected.
5. A hand to hold
There are very few people who cite phoning a call centre as something they enjoy, and with good reason. The setup rarely leaves people feeling remembered or valued.
Mortgage processing centres handle thousands of cases at once, whilst brokers often have a single point of contact for their own cases, making it far easier to stay on top of progress and to handle any hiccups. Brokers also have a back-office support team to help, guide and support you through the whole process from start to finish, providing you with regular updates along the way.
Your broker will also talk to estate agents and solicitors, where lenders generally won’t. That means that you’ll have to chase your lender for updates on your application, and then get back to the estate agent and solicitor to let them know the latest. Brokers bridge that gap, doing all the chasing and updating for you, saving you interruptions to your day and work!
Final words
Having an expert on your side who knows the mortgage market inside out and who can help you choose the right mortgage for you from the hundreds that are available, will give you complete confidence that you are buying a home on the best terms possible.
But why not put us to the test?
Call us on 01273 906706 or email us at enquiries@sussexmortgageservices.co.uk to talk to one of our advisers and to find out more – we’d love to help you with your moving plans.
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Fixed, capped, tracker or variable: Which Mortgage is right for you?
Bewildered by the options? Boggled by the language? Bewitched by the offers? You are not alone.
The mortgage market has thousands of products from hundreds of lenders, each with its own specific commitments, benefits and penalties. So how do you make the right choice to ensure you don’t get stuck with the wrong loan for years?
Do you need a mortgage broker?
For most people, getting a mortgage is what makes buying a home possible. Nonetheless, mortgages are pure paperwork and processes buried beneath a mind-boggling array of interest rates, loan types, lending criteria and internal procedures. There really is a lot to know.
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