We run our weekly blog discussing all things mortgages, life insurance and any housing market related topic. However, for many first-time buyers, or those who simply haven’t used a broker before, the day-to-day role of a mortgage broker isn’t always fully understood.
In short, a mortgage broker finds you the cheapest, most appropriate lender from across the mortgage market. The lenders available and the products which are most suitable will depend on your past, present and future financial circumstances.
A mortgage broker takes care of the entire mortgage process from the initial discussion to the end goal of receiving a mortgage offer. This involves the research to find the chosen lender, submitting the application, supplying supporting documents and then liaising with the lender, where necessary, in order to ensure they are happy to provide the mortgage offer. The advice given based on the discussions had and the research done is the fundamental role of a mortgage broker. The latter stages could be done by anyone and at this point the main benefit of using a mortgage broker is the timesaving – still significant for many!
So why couldn’t you just do your own research?
Well, the same logic could be applied to any profession when you think about it like that… Why don’t you just sell your own house rather than using an estate agent? Well, if you want the best chance of selling and to get the most for your money, you’re obviously going to use an estate agent! The same logic applies when arranging your mortgage which is why the majority of UK mortgages are arranged via brokers.
When it comes to those with reservations about using a mortgage broker, of course you could just walk into your local high street branch of the bank you hold your current account with. You could just go online and see what the price comparison sites throw up as the lowest interest rate in the market today. But you could also speak to a professional, qualified mortgage broker who works in the industry day in and day out – it’s up to you!
Every mortgage lender has different lending criteria. While you may be eligible for one, you may be declined by another. Lending criteria is highly specific from the way bonus, overtime and commission income is assessed to the types of properties lenders are happy with and so many more variables. Similarly, every lender has different affordability calculations. While one lender might lend you enough for your purchase or remortgage, another may not even come close. The role of a mortgage broker is to find you the cheapest, most appropriate lender and save you time, money and stress by managing the process for you.