Revealed: The three reasons you should use a mortgage broker for your home loan
Posted 13 October 2015 by Nick Parkhouse
For the first time since the global financial crisis, the number of mortgage deals on the market has exceeded 15,000. While this huge choice is great news for borrowers, it can also make it hard to find the perfect mortgage deal.
Ian Gibbons of Nottingham Mortgage Services, the broking arm of Nottingham Building Society, told This Is Money: "The market is becoming increasingly crowded and confusing, especially if you are trying to find your way through it on your own."
One way that you can negotiate the vast choice of deals is to use a mortgage broker. We look at three reasons you should speak to an independent expert before agreeing your home loan.
1. They will sort through thousands of products to find the best one for you
With so many different deals available, a mortgage broker will narrow down your options in order to find the one that suits you best. They will find out about your plans and talk to you about what you want from your mortgage.
"We look at a customer’s individual circumstances – including how long they think they will stay in the property – before recommending a certain type of deal," says mortgage broker Sandy Ameer-Beg. "One client may be ideally suited to a long-term fix, while another, whose situation seems similar on the surface, may be better off with a base rate tracker."
As well as finding the right type of product a mortgage broker will also look for the best overall deal. With arrangement fees for mortgages varying from nothing to over £1,000, a broker will cost up the various options to find the best value.
For example, if you want a small mortgage then you will often benefit from a low-fee deal, even if that means you have to pay a slightly higher interest rate.
2. They will find the right lender for your situation
Getting a mortgage agreed isn't as simple as finding the most cost-effective product and submitting an application. Other factors come into play, such as a lenders' criteria and their processing times.
If there is anything out of the ordinary about your situation then a broker can look for a lender who is sympathetic to your circumstances. For example, you may need a lender who accepts particular types of income or will lend on an unusual property.
In addition, a broker can help to get your mortgage agreed on time which could be crucial if you are in a contracts race or you need to finalise the deal quickly.
3. They will help you to manage the process
Once your mortgage application has been submitted to a lender your broker will also help you to manage the process. Many brokers have dedicated administrative staff who will liaise with your lender to speed up the process and to make the application as straightforward as possible.
Your broker can also help with other aspects of the mortgage process. They will liaise with your solicitor to ensure things go smoothly and can also help you find the right life, buildings and contents insurance.