There are plenty of comparison sites to choose from these days, ready to help you with everything from home insurance to funeral plans. Just go online, check out the deals and pick the one that comes top of the list, and it looks as though you can’t go wrong.
So, with all this information just a click away, why should you bother with a Mortgage Broker?
What does he or she know that you don’t, and why should you pay for their services?
After all, you have enough to pay for buying your new home in the first place, and arranging a mortgage is expensive enough even without a middleman.
The simple answer is, whether you are struggling to get on the housing ladder for the first time or simply want to remortgage and get a better deal, a DIY approach could leave you much worse off, and just possibly in trouble.
Here are some very good reasons why you’re probably better off getting professional help.
You get good advice
Unless you are a Mortgage Broker yourself, you can’t be an expert in getting a mortgage. That much is obvious. But there’s an awful lot you need to know about choosing the right mortgage. It’s not as simple as just opting for the cheapest fixed or tracker rate and hoping everything else works out.
Mortgage Brokers have to be qualified to give you mortgage advice. If you ring up a lenders call centre, they will try and be helpful, but their priority is to sell you one of their mortgages. New regulations state that that all call centre staff need to be advisers or must refer you to someone who is, but that doesn’t mean they will be working hard to find you the best deal on the market.
The same thing applies if you make an appointment with one of their mortgage advisers in branch.
You get protection
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 exactly the particular mortgage they have chosen is right for you and your financial and personal circumstance. If their advice is wrong you can complain and be in line for compensation. You can be certain that the advice they give you is accurate, because their career and income depend on it.
In contrast, if you go directly to a high street mortgage lender, don’t take advice, and end up with a mortgage that later becomes unaffordable, you may not have so much legal recourse. Under the rules of the Mortgage Market Review, it’s still the lender’s responsibility to ensure affordability – so even if you buy direct, you should have some recourse. However, a broker can still offer a valuable layer of extra protection.
You get an expert on your side
A Mortgage Broker isn’t looking for the best commission rates, or to sell their quota that month. They will give you access to far more products than if you went direct, and search the whole market for the best mortgage for you. You get expert advice and you can have access to every lender and mortgage product available, rather than being restricted to the single range of the lender you go to.
You save time
Mortgage criteria has tightened massively over the past few years. The Mortgage Market Review is a major new hurdle. It’s been designed to ensure borrowers can prove affordability, even in the event of a rate rise, and those it includes extra checks means increased application times.
A broker deals with lenders on a day-to-day basis, so they’ll know what the application process is like for each one and 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, because a mortgage broker may 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 – and that can be invaluable should things get held up.
You can start now
A mortgage broker is a good idea for anyone who wants a better mortgage, and if you are looking for Interest-only solution and lending into retirement, a qualified adviser is essential.
To get the help you need, simply contact us.
Remember your home may be at risk if you do not keep up with the repayments for a loan or mortgage secured on your property.