Mortgage blog: Looking for a home loan? Don’t stay on the High Street
If you're looking for a new mortgage you could end up paying more than you need to by restricting your search to your local High Street. That's the advice from leading property experts who are urging borrowers to look further afield when searching for the best mortgage deal.
Speaking to a broker or finding a product from a new lender or a regional building society can save you thousands of pounds, as we see next.
New lenders, brokers and building societies can be your best hope for a great deal
The Daily Mail reports that "if you're looking for a decent fixed rate without a sky-high application fee then you're unlikely to see many deals from high street giants such as Lloyds or TSB appearing in the best-buy tables".
Over recent months new lenders have offered market leading deals in an attempt to grab a foothold in the crowded mortgage market. The Post Office, Tesco and newcomer Metro Bank have all featured in ‘best-buy' tables and may not be the first place you'd look when beginning your search for a home loan.
Keith Osborne, editor of WhatHouse.co.uk, says: "As with any other financial product it pays to shop around when looking for a new mortgage. And, this doesn't just mean a trip down your local High Street. Even where a major lender may offer a great deal they may charge higher fees than other banks or their criteria may be more restrictive. So it pays to head online or to consult a mortgage broker for advice before signing on the dotted line."
Most brokers are independent meaning that they can source deals from across the mortgage market. This often means that they have access to products from lesser-known lenders that you may not have considered. Many lenders also offer exclusive deals via intermediaries that are not available if you approach them directly.
Osborne adds: "Building societies are another great source of low-cost mortgages. As banks have reined in their lending over recent years, mutual lenders have been able to innovate and take a larger share of the mortgage market. In the first seven months of 2013, gross lending by building societies was £22.2bn, up 30% on the same period last year. Mutuals now account for almost a quarter (24%) of the market share of gross lending in the UK."
The Daily Mail highlights deals from the likes of the Norwich & Peterborough, Nottingham, Leeds and Newcastle building societies, while in 2013 both the Chelsea and West Bromwich building societies have also offered record-breaking deals.
Click here to find out more about how WhatHouse.co.uk can help you find the right mortgage.