10 Benefits of Using a Mortgage Broker

If you’re navigating the maze of mortgage options and feeling a bit overwhelmed, don’t worry, its totally normal. When you are buying your first home and trying to navigate the process, its not easy to know what professionals you can turn to and when they come in useful. In this article, we will explore the many benefits of enlisting the help of a mortgage broker.

KEY TAKEAWAYS FROM THIS ARTICLE:

• Working with a mortgage broker can potentially save you time, effort, and money.
• A mortgage broker may have a wider range of products from more lenders.
• A mortgage broker can help you to understand your finances and affordability.
• Not all mortgage brokers will be suitable to all types of property purchases.

A Mortgage Broker Can Save You Time

In today’s fast-paced world, time is precious – and mortgage brokers understand that better than anyone. Instead of trawling through countless lenders and trying to navigate the best deals on comparison sites, a mortgage broker does the legwork for you, saving you hours of research and endless phone calls.

They Can Save You Money

Who doesn’t love saving a few quid? Mortgage brokers have access to exclusive deals and rates that you won’t find on the high street. By taking into account all costs and not just the interest rate and by scouring the market for the best offers tailored to your individual needs, they can help you secure a mortgage that saves you money both now and in the long run.

They Can Access a Wider Range of Mortgages

Going direct to a lender often means a limited choice of products, but mortgage brokers have access to a vast array of lenders and mortgage products and can help you to find a product that suits your needs. Whether you’re a first-time buyer, self-employed, or have a unique financial situation, they are likely to have dealt with many cases like yours before and can find the perfect mortgage to suit your needs. Remember, if you need a specialist type of mortgage, such as a buy to let mortgage, be sure to choose a broker who specialises in this area.

They Can Assess Your Financial Situation

Navigating the ins and outs of your finances when buying a house can be daunting, but mortgage brokers are trained to analyse your finances. They’ll review your income, expenses, credit history, and other factors to determine your borrowing capacity, give you a good idea of your affordability and find a mortgage that is right for you.

They Can Provide Expert Advice

With their finger on the pulse of the mortgage market, brokers offer invaluable expertise and guidance every step of the way. Whether you have questions about interest rates, repayment options, or mortgage jargon, they’re here to demystify the process and empower you to make informed decisions.

They Can Reduce Your Paperwork

Let’s face it – paperwork is nobody’s idea of fun. Luckily, mortgage brokers take the hassle out of paperwork by handling the application process from start to finish, meaning you don’t have to get bogged down in paperwork. From gathering documents to liaising with lenders and dealing with queries, they can keep the mortgage side of things running smoothly while you focus on finding your dream home.

They Can Help You Understand Complexities

Mortgages can be complex, but mortgage brokers are here to break it down into bite-sized pieces. Whether you’re baffled by interest rates or early exit fees, confused about fixed vs. variable rates, or mystified by mortgage terms, they’ll explain everything in plain English so you can make sense of it all. With many mortgage advisors specialising in certain areas, it is wise to choose a broker that is experienced in that specific type of property purchase. For example, if you are buying a buy to let property, be sure to choose a broker who is experienced in this type of transaction. 

They Can Help Solve Problems

Home buying can be a journey of ups and downs. If you encounter bumps in the road, mortgage brokers can be your go-to problem-solvers, ready to tackle any challenges that arise along the way. For example, they will help to find creative solutions to deal with lender requirements  or if your case is more complex, to keep your mortgage journey on track.

They Can Advise on Criteria and Processes of Different Lenders

Every lender has its own criteria and products and navigating this can be a minefield, but, unlike you or I, mortgage brokers speak their language fluently. They’ll help you understand each lender’s criteria and processes, ensuring you meet all the necessary requirements for a smooth application process.

They Can Chase Up Your Application and Speed Things Up

It’s not fun when you feel like your mortgage application is stuck in limbo, but mortgage brokers are masters of follow-up, keeping tabs on your application and chasing up lenders to keep things moving.

How to Choose a Mortgage Broker

• Understand what you want from a broker.
• Ask for referrals and check online reviews.
• Ask for a breakdown of service and fees.
• Ask about their experience and if they can help you in your particular circumstances.

Giulia Riccato from Beyond Lending has over 7 years experience in the mortgage industry and says:

“Seeking the help of a mortgage broker can make your purchase/re-mortgage journey much smoother and stress free. Using an intermediary who has access to the whole of the market, like Beyond Lending, allows you to know you have the best option always secured for you. A good broker will monitor the market during the whole process, and, if there are cheaper rates issued by the lenders even after you receive your first mortgage offer, they will be able to review this rate and secure the new one if there is a more cost-effective solution. This allows you to ensure that you have the most competitive product secured until the end of your purchase/re-mortgage process.

It’s important to remember that it’s not just about the cheapest rate available in the market, but more about what suits your circumstances at best. There are thousands of products available in the market and a specialist will be able to understand your situation and advise you on the best product for your needs. For example, different lenders will have different criteria and affordability calculations, which may allow you to achieve a budget that you would have thought to be impossible to reach if you previously spoke only with your bank directly.

As intermediaries, we also have direct contact with the solicitors and, as part of our service, we will support you in the process by keeping track of the progress of your purchase/re-mortgage. This allows us to step in when needed and help addressing any hiccups and/or delays that may occur. This can be a great help, as it may feel a bit overwhelming for someone who is not an expert in the matter to be chasing solicitors up and trying to understand the legal process involved with this type of transaction.

A mortgage broker can therefore make the difference in the purchase and/or re-mortgage of any borrower, not just for those who have a tricky job situation or credit score situation.”

Some mortgage brokers offer a free service and others charge a fee. When you contact possible mortgage brokers, it is worth asking them to provide some detail on how they’ll help you, outline all their fees, give you some information on the lenders they work with, and their experience in relation to your type of property purchase. 

So while it is possible to secure a mortgage without the help of a mortgage broker, and while you may be able to secure a good deal by going directly to a lender, there are many benefits of using a mortgage broker, which can help you save valuable time and money when buying your next home.