Three ways in which a broker can help you to save money on your mortgage
If you are looking for a new mortgage you may have considered speaking to a mortgage broker. Figures show that around two in three borrowers obtain their mortgage through an intermediary rather than going direct, with IMLA data showing that over 70% of first time buyers turned to a broker in the first half of 2015.
There are lots of reasons why you would use a broker to arrange your mortgage. Here are three of the ways in which they can help you to save money on your home loan.
1. Access to a wider choice of lenders
One of the main advantages of using a mortgage broker for your home loan is because they have access to a wider choice of lenders and deals.
Most brokers are 'whole of market' meaning that they can access mortgages from a huge choice of banks and building societies. There are lenders who only offer deals through brokers - which you won't have access to if you arrange your mortgage yourself - and many brokers can access exclusive rates and deals not available on the High Street.
As well as traditional lenders, many brokers can also access specialist lenders such as private banks, bridging finance experts or specialist buy-to-let or commercial lenders.
With thousands of mortgage deals available, a broker will be able to scour the market for you in order to find you the most appropriate mortgage at the very best rate.
2. Expertise and market knowledge
Everyone's individual circumstances are different. And, each lender has their own criteria and rules. Finding the right lender for your particular situation can be tricky, particularly if you have a complex income stream, a non-standard property, or other issues that don't easily fit a lender's 'tick box' approach.
A good mortgage broker will know which lenders to approach with your application. They will have contacts at a range of lenders in order to chat through your needs and can often speak directly to an underwriter. By utilising their network of contacts, a broker can match you with the right lender and the right deal.
3. Looking after your mortgage for life
A good mortgage broker won't just arrange your mortgage for you and then disappear. Good brokers will build up a long-term relationship with you over many years in order to regularly review your arrangements.
By staying in touch with you, a broker can:
- Review your mortgage at the end of a fixed or discounted rate - they will be able to establish whether it is financially beneficial for you to remortgage to another lender or to take a loyalty deal with your existing bank or building society
- Help you if you need to move home - if you have to move home your broker can explore all your options, such as 'porting' your existing mortgage rate or looking at a new mortgage with a new lender
- Review your insurance arrangements - as well as looking after your mortgage, your broker can regularly review your insurance. By reviewing your home or life cover they will make sure you have the right protection at the most competitive price