When you’re looking to take your next step up the property ladder (or your first one for that matter) you’ll most likely to be looking for ways you can reduce the costs of moving house. That being the case, you may be tempted to disregard the notion of even considering getting a mortgage broker on board. After all, by circumventing the middleman surely you stand to save?
Though it’s far from impossible to bag a great mortgage deal on your own steam, there are a number of advantages that come with engaging the services of a broker.
It should go without saying that your broker will be an expert on mortgage products and the market in general. But then that will also apply to any lender from whom you might buy directly. So why is their expertise worth any more?
For one thing, it’s important to remember that the broker isn’t selling you the mortgage so much as selling you their help in ensuring you end up with a product that’s both suitable and great value. Therefore they no interest in leading you one way or another.
Of course, not all brokers work by charging a fee. Some earn their living from commission paid by the lenders themselves. However, if you’re worried your broker will do little else but point you in the direction of their highest paying provider and pocket a referral fee, you should now that the facts of how they stand to be paid in any given situation will be made available to you.
All mortgage brokers have to supply a Key Facts Document, containing within it all the ins and outs of their commission and fees, ensuring transparency in their actions.
Information Is Not The Same As Advice
You may think that, so long as you talk to enough lenders, whether by visiting the branches of banks or talking to call centre staff, you’ll eventually have enough information to make the right choice.
However, you need to remember that whilst information is one thing, advice is quite another. Most of the people acting as a point of contact for mortgage providers aren’t legally qualified to offer advice. All they can do is tell you about their products. They can’t say whether they are a good fit for your situation. A broker can.
There aren’t many instances in life where the average consumer gets to throw their buying power around, much less when it comes to obtaining a mortgage. If anything, you’ll find yourself bending over backwards to demonstrate that you match the lender’s criteria.
If you’re with a broker then you’ll have a little more weight behind you. As they may be responsible for bringing any one lender a good deal of business they could be able to push the process along in a way you’d struggle to.
Protection Against A Poor Decision
Given how long you’ll have to go on paying for it, picking the wrong mortgage can be a costly mistake to make. If the decision was your own, then naturally enough, you have no one else to blame. You simply have to live with your error.
If, on the other hand, you were advised to take a mortgage that turned out to be ill-matched to your circumstances and consequentially unaffordable, you can complain and get compensation.
Save Time And Energy
Of course, using a broker will cost you money, but it will save you a great deal of time and energy. Realistically, it would take a great effort for you to compare every mortgage available to you, double check that you meet their criteria and make a decision.
This could be even harder if you’re a non-standard case. For a broker this won’t pose a problem. They’ll know where to look whether you need a lender offering help for first time buyers with only a small deposit or are looking to buy-to-let.