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Why Use A Mortgage Broker
When you’re on the hunt for the best mortgage deal, you’re likely to experience some difficulties while navigating the UK mortgage market. Luckily, this is where a mortgage broker or advisor could really come in handy.
A mortgage broker, often called a mortgage advisor, offers expert guidance according to your financial situation. They save you time by quickly comparing deals, ensuring you don’t miss out on broker-only deals or whole-of-market offers.
They have a deep understanding of the mortgage market, so they can pinpoint deals that align with your needs. The result? You potentially save lots of money in the long run. Also, most mortgage brokers have established relationships with lenders, which can speed up the mortgage application process.
They’re also good at spotting red flags in deals, helping you avoid pitfalls. Using a mortgage broker gives you an added layer of consumer protection. If a recommended mortgage turns out to be unsuitable, you have the right to lodge a complaint, offering peace of mind.
In short, a good mortgage advisor simplifies the complex process, ensuring you make informed decisions every step of the way.
How To Find A Mortgage Broker
Find a a mortgage brokers in the following cities:
Finding a broker is relatively easy nowadays but to help you, here are some ways you can go about it:
Personal Recommendations
Start with word of mouth. Friends, family, or colleagues might have recently used a mortgage broker and can provide firsthand insights. Personal experiences can guide you to reputable UK mortgage brokers who have proven their worth.
Online Platforms
Websites dedicated to mortgage advice usually have directories or services to connect you with brokers. Online reviews can also offer a glimpse into a broker’s reputation and expertise.
Estate Agents
Many estate agents either have in-house mortgage advisors or partnerships with external ones. Although they might have self-beneficial interests, they can be a convenient starting point.
Professional Bodies
Look for brokers affiliated with recognised professional bodies, with the primary one being the Financial Conduct Authority. This ensures they adhere to industry standards and offer a level of trustworthiness.
How To Choose A Mortgage Broker
Now that you know how to find a mortgage broker, here’s how to choose between all the brokers out there:
Whole-of-Market Access
Go for a mortgage broker who provides whole-of-market insights. This ensures they’re not limited to a select panel of lenders but can offer a wide range of deals.
Credentials and Training
Ensure your chosen mortgage advisor has the necessary qualifications, such as a certificate in mortgage advice. Their affiliation with professional bodies can also be a good sign of their expertise.
Reviews and Testimonials
Past clients’ experiences can be eye-opening. Look for brokers with positive reviews, highlighting their efficiency, transparency, and ability to secure the best deals.
Transparent Fee Structure
Some brokers earn through commissions from lenders, while others might charge you directly. Opt for those who are upfront about their broker fees, so there are no hidden costs.
Specialist Knowledge
If you have unique needs, like bad credit, choose a specialist broker with experience in that niche. Their tailored advice can be invaluable.
Types of Brokers
- Tied brokers: They’re affiliated with specific lenders, offering only their products.
- Multi-tied brokers: Partnered with a select group of lenders, providing a limited range of deals.
- Whole-of-market brokers: A whole-of-market broker can access the entire mortgage market, ensuring you have a wide selection of options. They’re often the best choice for unbiased, extensive mortgage advice, and they can cater to diverse financial needs.
- Independent mortgage broker: These brokers can access the entire mortgage market without ties to specific lenders or financial institutions.
Red Flags To Note
If you see any of the following issues when you compare mortgage brokers or mortgage advisors, it may be a sign that they aren’t for you:
- Limited options: Brokers pushing only a few mortgage deals, hinting at potential biases or limited access.
- Vague about fees: Lack of transparency related to mortgage broker fees or sudden, unexpected costs.
- High-pressure tactics: Urging quick decisions without giving you time for your own research.
- Lack of credentials: Absence of recognised qualifications.
- Poor communication: Delayed responses, evasive answers, or reluctance to explain mortgage terms.
- Negative reviews: Consistent poor feedback from past clients, especially regarding transparency and efficiency.
Useful Broker Terms To Understand
- Agreement in Principle (AIP): A lender’s initial offer, indicating potential loan amount.
- Early Repayment Charges (ERCs): Fees for exiting a mortgage deal prematurely.
- Standard Variable Rate (SVR): The rate post your mortgage’s initial deal period.
- Direct-Only Deals: Mortgages that are available only when applying directly to lenders, bypassing brokers.
- Broker-Only Deals: Exclusive deals that are only accessible through brokers.
- Certificate in Mortgage Advice: A recognised qualification that ensures broker expertise and adherence to industry standards.
Mortgage Brokers You Could Try
If you’re ready to begin your quest, here are a few brokers who could be of service to you:
Habito
Habito is an innovative online platform that streamlines the mortgage process using advanced algorithms. They offer both broker services and their own mortgage products.
Better.co.uk
A digital-first approach defines Better.co.uk. They provide transparent and efficient services that help clients navigate the mortgage market with ease.
L&C Mortgages
One of the UK’s leading mortgage brokers, L&C Mortgages boasts extensive experience. Their whole-of-market approach ensures a wide range of options for their clients.
Note: While the brokers listed above have met key benchmarks in terms of customer reviews and regulatory compliance, their inclusion does not guarantee their quality or suitability for your individual needs. Always conduct personal research before making any commitments.
FAQs
What does a mortgage broker do?
Mortgage brokers guide clients through the mortgage process. They assess financial situations and recommend suitable mortgage products. They also liaise with lenders to secure loans. It’s worth noting that mortgage brokers are sometimes referred to as mortgage advisors, although the two are technically different.
How do I choose a good mortgage deal?
Do your research on all the offers and take into consideration the interest rates, fees, and loan terms. Then seek recommendations and compare options to find a deal that aligns with your financial goals.
Is it better to go to a mortgage advisor or a bank?
While banks offer specific products, mortgage brokers present a broader range of options. Brokers can provide tailored advice, making them often more advantageous for diverse needs.
How long does a mortgage application take through a broker?
The duration varies. With the help of expert mortgage advice, especially from 2a whole-of-market broker, the process can be expedited as they can efficiently navigate lender requirements and streamline paperwork.
Is there a difference between a mortgage broker and a mortgage advisor?
For the larger part, no. The terms ‘mortgage brokers’ and ‘mortgage advisors’ are used interchangeably. Both refer to professionals guiding clients through the mortgage process but advisors generally have slightly different duties compared to brokers.
Conclusion
It’s no secret that trying to secure a mortgage can be a real headache, but with the right guidance, it becomes manageable. Choosing a reliable mortgage advisor is pivotal in this journey. A good mortgage advisor can offer invaluable insights, ensuring you’re getting the best deal for your financial situation.
By familiarising yourself with the role of mortgage brokers, recognising red flags, and being equipped with essential terms, you’re empowered to make informed decisions. Remember, the right advice can transform your property journey, making it smoother and more rewarding.
Sources:
https://www.onlinemortgageadvisor.co.uk/mortgage-broker/how-to-find-a-broker/
https://goodmove.co.uk/how-to/how-to-choose-a-mortgage-broker/