Following on from our last mortgage advice article, which covered why now’s a good time to use a mortgage broker against the backdrop of rising interest rates and growing inflation, we thought that it might be worth outlining some of the more explicit benefits of using a mortgage broker.
If you’ve found yourself asking ‘should I use a mortgage adviser?’, or have been trying to weigh up the benefits of using a mortgage adviser versus going it alone, then this article might help you come to a decision.
However, before we get to the nitty gritty on how we think mortgage brokers add value to those applying for a mortgage, it’s worth sharing recent figures from the Intermediary Mortgage Lenders Association, which highlighted how over 90% of lenders believe that mortgage brokers add value* by helping non-standard borrowers access a wider range of mortgage products.
The findings also revealed how 67% of lenders stated that borrowers who get advice from a mortgage adviser were likely to find a mortgage better suited to their needs*. So, there are two reasons to use a mortgage broker from the perspective of the lender. But what about reasons to use a mortgage adviser from the perspective of the broker?
Here is a selection of what we believe to be the most compelling.
1. More choice, more efficient
As a Guildford mortgage adviser with access to a wide selection of lenders and mortgage products, we can reach pockets of the mortgage product landscape that simply aren’t open to the average mortgage applicant. Those going it alone might use one visit to a bank to get a mortgage – but their choice is limited to the mortgages offered by that lender. Whereas one visit to a mortgage broker provides access to multiple lenders and a huge array of UK mortgage deals.
2. Regulation and qualifications count
If your power fails, you’ll typically call an electrician out. If your pipes burst, you’ll call a plumber. In both instances, they are experts at what they do. Using a mortgage broker is no different. To be a mortgage broker means that you need to be highly qualified, and the entire profession is regulated by the Financial Conduct Authority so that those who use mortgage brokers are protected. Rather than simply scrape by with a passable mortgage deal, let a mortgage broker get you the best mortgage deal.
3. Don’t forget the legwork!
The phrase ‘time is money’ rings true here. Preparing a mortgage application, submitting a mortgage application and then chasing a mortgage application takes a lot of time and effort. If you’d rather somebody else handle the administrative side of applying for a mortgage – or if you could think of a million and one things you’d rather be doing with your time – then why not let a mortgage broker do it for you. It’s their job, after all.
4. A strong case
A mortgage broker preparing the case for a mortgage prior to submission is a bit like a lawyer preparing a case for court. There’s always lots of information that needs careful presentation, other important aspects that need addressing and maybe even issues that need smoothing out. A mortgage broker will compile all possible information and present it to the lender – or lenders – in the best possible light. They’ll know which lenders will accept specific scenarios or more complex circumstances and crucially, those who won’t. Those applying for a mortgage on their own won’t be aware of these nuances, which can ultimately lead to an unfavourable decision.
5. Money well spent
All mortgage brokers are different when it comes to pricing. With Complete Mortgages there is no up front fee, which means that our mortgage consultations and recommendations are free. If an applicant wishes to proceed and we have completed the initial credit checks with the lender, the typical fee for a residential mortgage is £399. However, at present, we’re hearing stories of people applying directly to a lender being told that they can’t get an appointment for 5-6 weeks, whereas our access to lenders is immediate. In the current climate, where there’s a rush to get a mortgage and mortgage rates are increasing in line with interest rate rises and inflation, a £399 fee for instant service and access to a comprehensive panel of lenders is money well spent.
Can we help you get a mortgage? If so, contact one of our Guildford mortgage brokers on 01483 238280 or e-mail email@example.com.
* Source: Mortgage Introducer