What to look for in a mortgage broker
In today’s world where saving money is becoming ever more important, people are reviewing their mortgage to make the most savings. Figures show these people are now looking further than just the high street to get the best mortgage deal.
For many people when it comes to borrowing, their first thought is to go to their bank. Whether it’s ‘They have all my details already so it will just be easier’, or ‘My bank will offer me the quickest and easiest process’, its important people know this isn’t always the case.
Many of the brokers we work with specialise in:
- Self-employed mortgages
- Buy to let mortgages
- Low deposit mortgages
- Bad credit mortgages
- Short term mortgages
- Maximum loan mortgages
- First time buyer mortgages
The most important things to consider when applying for a mortgage…
Don’t limit yourself. Any High street bank will be open about the fact they only offer their own products, but a limited product range could ultimately mean a higher rate, and no flexibility if your circumstances don’t fit the exact criteria. For instance a first time buyer with 10% deposit, who gets a ‘B pass’ credit score from their bank, may mean they have to put in 15%. This could be the difference between buying that dream house now, or waiting 6 months to save up the extra cash, when ultimately another lender would just do the mortgage there and then. The good news is, a whole of market broker can offer you the flexibility you need.
Don’t pay too much. Whether you’re considering using a broker or going to your bank, the overall cost is one of the most important factors. It’s true that if you go to your bank they’ll set it up your mortgage for free (excluding arrangement/application fees), and that most brokers can charge a fee for their service, so, what is the best way to find the best mortgage deal? And is paying a broker fee worth it? The answer is to calculate the total cost over the term.
A working example: At the time of writing, Lloyds TSB’s best deal would be a fee free, 2 year fixed rate deal of 3.69% for remortgages under 60% Loan to value (LTV). That means for a £100,000 mortgage over 20 years the repayments would be approx. £589 a month. The best fee free deal on the market a broker could get for you would be with Natwest @ 2.85% with repayments being approx. £547 a month. So you’d save £42 a month, £1008 so over the 2 year fixed period, a no-brainer. It is important to factor in any fees though, as some brokers can charge as much as 3% (£3000 in this example), so its important you pick the right one! A typical fee for a straightforward case may be £399, so in saving £1008 over the 2 years, the total saving would be £609.
There is a lot involved in a house move or a re-mortgage, so you may need good independent advice. Where your bank may just arrange your mortgage, a good broker will deal with estate agents and vendors on your behalf; put you in touch with fast acting trusted solicitors; be fully regulated and act completely in your best interests; haggle and help you get that new house for the best price; get you the best mortgage; get you the best value for money insurance; and often much more…
Things aren’t always straightforward. In fact, in our experience the majority of applicants nowaydays are not simple to find mortgages for at all. With the financial crisis causing lenders to tighten their belts, they really cut down on who they lent money out to and as a result some have very strict criteria. It used to be that pretty much anyone could find finance. Now however, those self employed applicants need to prove their income – some buy to let landlords need experience – first time buyers need deposit – those with bad credit history need to settle their debts and generate a solid and clean history over at least a couple of years.
The specialists we work with have decades of experience in the mortgage market, and have seen the highs and lows for rates and lending criteria. Some of the advisers we work with have also worked in high street banks for many years and know their processes inside out – making new applications all the more simple.
If you are looking for an honest, professional and thorough service, make an enquiry or give us a call today.
People often ask “Will using a broker and making many applications harm my credit file?”. In reality, the right broker can help protect it. Rate shopping is a common thing these days with comparison sites aplenty, and it is true to say that multiple searches on your file may damage your credit score. So if you’re struggling, blindly moving from one lender to the next is not the best way forward.
One of the best things about using an experienced broker is that they should already know the criteria of all the different lenders. They assess your situation before acting, then research the market using professional systems and market knowledge, to find a lender that is most likely to accept your application. This minimises the risk for you, not to mention saves you a lot of hassle and hard work.
All the advisers we work with are professional and experienced in arranging these kinds of mortgages. A tough or complex application to one broker is their bread and butter. I have personally been arranging mortgages for over 25 years and, if you would like you can ask for me personally. If you’re shopping around yourself, unless you’ve been in the industry and are trained to the same level, you wont have the same access to lenders and/or the knowledge of where to go. Give us a call, make an enquiry, or try out the online search engine now.
The right mortgage broker
- Whole of market & Independent
- Reasonable and fair fee structure
- Gives you access to direct deals
- Has exclusive products
- Has links with commercial finance
- Is whole of market for insurance
- Has years of experience
- Has plenty of happy customers
The wrong mortgage broker
- Is limited to a few lenders
- Only offers broker products
- Charges big non-refundable fees whether successful or not
- Has no exclusive deals
- Gives up if its not straightforward
- Lacks market knowledge
- Is restricted to one or two insurers
- Jargon free, impartial advice from your own personal adviser, who works completely and only on your side
- ‘Whole of market’ research, for mortgages, loans, securities, life insurance & home insurance
- No upfront consultation fees or hidden charges, just a professional mortgage advice service throughout
- Years of experience arranging finance for the trickiest of cases – if there’s a mortgage out there, your broker will find it
- Seamless, pressure-free, professional service that saves you time, hassle and money