Trying to secure a mortgage is no easy feat. It’s a complicated process to work your way through, and the idea of hiring someone to help you might tempt you. That’s the job of mortgage brokers, who can help you to look for a good deal on a mortgage. There are both pros and cons to using a mortgage broker, instead of going straight to lenders on your own. On one hand, mortgage brokers are knowledgeable, qualified and know how to get you the best deal. But on the other side of the argument, hiring a mortgage broker means an extra cost in an already expensive process. Furthermore, some banks will only deal with your directly, and not through a broker.
It could take years for someone to get truly to grips with the mortgage market. Individuals can certainly make an attempt to secure a mortgage on their own. But it can be a riskier task without the input of a professional. Even if they can find a good deal on their own, they still risk being unsuccessful in their application without expert advice. Mortgage brokers are qualified to give you advice. Whereas a lot of the staff from call centres or in a bank’s branch aren’t qualified to give you mortgage advice. Although the bank often arranges for you to speak to their mortgage advisor, you may wish to have someone independent.
Knowledge of the Market
Mortgage brokers know their market and will be able to help you find a mortgage suited to you, and help you succeed in your application. The mortgage market has changed in recent years. Looking for a mortgage is now more about who will lend to you at all, rather than which mortgage is the best deal. Of course, you want your mortgage broker in Bath to find you a good deal too, but the first step is finding and securing any deal at all. They know which lenders are most likely to accept your application, preventing a rejected application from leaving a mark on your credit record.
An Extra Expense
Despite the added benefits of using a mortgage broker, their expert advice doesn’t come without a cost. Buying a house is already an expensive process. You need to have a deposit saved up before you even begin. And when you’re buying things like stamp duty and surveyors can keep piling on the costs. Hiring a mortgage broker adds another expense, which you may decide is unnecessary. However, your mortgage broker may make their money through commission on the mortgage sale, rather than charging you a fee.
Another limitation is that some mortgage lenders prefer to deal with borrowers directly, rather than go through an intermediary. For example, HSBC prefers only to deal with customers directly over the phone. This means that using a mortgage broker could actually limit your options when it comes to looking for the best mortgage deal.
You need to weigh up the pros and cons when you’re considering whether to use a mortgage broker. There is no right or wrong way to look for a mortgage, but remember to consider the issue from every angle.