When buying your new, or first, house you’re likely to need a mortgage – but should use you use a mortgage broker?
Very few people buy a house with cash, so borrowing money is the only option. But with so many mortgage deals advertised online and dozens of different options, choosing the best mortgage deal for can be complicated!
Some people may choose the bank they have their current account with. But others speak to a mortgage broker for their home loan or try finding their own deal online.
Here are a few reasons why a mortgage broker could help you find a better deal…
1. Access to more lenders
A bank only offers mortgages from its own products. And that means they are limited to the deals they can access for you.
Some mortgage brokers offer a wider selection of mortgages – known as ‘whole of market’. Unlike banks, they can access a range of lenders, some high street and others that are specialist home loan lenders.
While you may be able to access these lenders online, mortgage brokers can access deals simply not available to the public. These exclusive deals can often be better than you can access without a broker.
2. A mortgage broker does most of the work
Let’s be honest, trawling the web, researching interest rates and finding the best deals can be a pain.
It can take hours, if not days, to find what you’re looking for. And then there’s the added complication of understanding everything. By the time you’ve found the mortgage for you, you then have to apply, wait on the telephone for an adviser and go through so many checks and forms.
With a broker, they cut out some of the above and get most of the work done for you. They can give unbiased advice on a variety of lenders, along with some of the best products available.
You’ll be able to make an informed decision based on their advice – without having to put in all the hours of research.
3. You’re legally covered
With a broker, legal protection is given to you as everyone in the industry has to meet certain ethical and legal standards. If your broker gives you poor advice or false information, you have the right to complain later.
The broker has to recommend a suitable mortgage and be able to justify why it’s right for you. If they don’t get it right, there could be consequences for them.
Official mortgage brokers must be registered by the Financial Conduct Authority. This also offers you peace of mind.
4. They cover you in crisis
A mortgage isn’t just about the money loaned. If things do go wrong for you, a good broker can provide some advice to help you negate any personal issues. For example, during the pandemic many lenders offered payment holidays and brokers could advise whether or not it was worth clients taking advantage.
Critical illness cover is also something many providers may offer. A mortgage broker can present you with insurance options to make sure you’re protected against crisis. This could save you a lot of stress should the worst happen.
5. Mortgage brokers are knowledgeable
You might be smart, but unless you are a mortgage broker you won’t know all the ins and outs. Brokers are experts in their field, and ultimately, you’re paying for their knowledge.
They are dealing with mortgages and lenders every day of the week. As a result, they know which are the best current deals, the trends and the pitfalls.
They know background criteria that certain lenders need from you. A good broker will save you time, money and a huge headache when things go wrong. The pros far outweigh the cons.
The Mortgage Dog is a mortgage broker that specialises in offering advice to people in the North East. If you live in areas such as Washington, Sunderland, Newcastle or Gateshead, you can contact us today to discuss your needs.
Your home may be repossessed if you do not keep up repayments on your mortgage.