Mortgage blog: Why it can pay to speak to a mortgage broker for your next home loan
If you need to arrange a mortgage, would you speak to a qualified expert or would you go it alone? With mortgage lending still tougher than it has been for years, many people choose to employ the services of a mortgage broker when they come to move home or to remortgage.
But is it more expensive to use a broker? And can't you just arrange the mortgage yourself?
Daily Express: "Taking advice can help you get the most suitable deal"
A recent article in the Daily Express claims that it can pay "to home in on mortgage brokers". As well as offering advice, a broker can often save you money as well as take the stress out of arranging your new mortgage. And they may not be as expensive as you think.
"Many brokers earn money by taking a fee from the lender they use for your mortgage," says Keith Osborne, editor of WhatHouse.co.uk. "Typically, brokers will receive a fee of around 0.35% of the loan amount. So on a £200,000 mortgage they will typically earn around £700."
However, an increasing number of mortgage brokers will also charge you a fee for their services. Some brokers charge up to 1% of the mortgage amount although many will offset any fees they receive from a lender against this charge.
"Even if your broker charges you a fee they can still be worth their weight in gold," adds Osborne. "Firstly, they may be able to use their expertise and contacts to find a lender who is prepared to agree your mortgage even if you've had no joy approaching banks directly. Secondly, brokers often offer exclusive deals which are unavailable on the high street. This means that they can secure better terms for your borrowing, meaning that even though you pay them a fee you're still better off than if you had gone it alone.
"Thirdly, brokers take an awful lot of the stress out of the transaction. Most will complete all the paperwork and liaise with your lender and solicitor on your behalf, saving you time and effort."
The Daily Express reports that "mortgages are increasingly complex and have a range of different fees and interest rates". And it is this wide choice of products that is another reason to consider a broker, according to Osborne.
He adds: "A mortgage broker can compare a range of mortgage deals from across the market. They can take into account all the rates, fees and charges and advise you on the right product for your particular circumstances. In my opinion, their ability to get the very best deal for you is worth every penny of their fee."
Click here to find out more about how whathouse.co.uk can help you find the right mortgage.