The process of finding the right mortgage can be a daunting task, particularly for first-time buyers. Many UK homeowners are unaware of the benefits of using a mortgage broker because they think they can simply approach the lender themselves.
A mortgage broker is a licensed adviser who can help you find the perfect mortgage product and assist you with the loan application.
In this blog, we will outline the top ten reasons why UK homeowners should use a mortgage broker to get the best deal.
Why you should use a mortgage broker
A mortgage broker:
1. Can search every product to find the right one for you
One of the key advantages of using a mortgage broker is that they have access to a wide range of mortgage products from various lenders. This means they can search every product to find the right one for you, tailored to your specific financial circumstances and needs.
It is impossible for you to complete a thorough search of the market yourself, so if you are only approaching your own bank or a handful of other lenders, how can you know if you are getting the best product available?
2. Is qualified and works within FCA statutory regulations
Brokers and advisers in the UK are regulated by the Financial Conduct Authority (FCA) and must be qualified to provide mortgage advice. This ensures that brokers work within FCA statutory regulations and adhere to ethical and professional standards, providing peace of mind to clients.
Mortgage brokers must keep their knowledge up to date by doing a certain amount of annual CPD. To meet the FCA regulations, brokers must carry out a thorough review of a client’s financial history and current circumstances so that they can make appropriate recommendations. All advice must be clear, fair and unambiguous.
3. Has in-depth knowledge of different lenders and their lending criteria
Mortgage brokers have extensive knowledge of the lending market and can advise clients on which lenders are likely to accept their application and which ones are unlikely to do so. This can save you time and frustration, as they will only apply to lenders who are likely to approve their application.
4. Has access to products not available directly to the public
Mortgage brokers have access to mortgage products that are not available directly to the public. This includes exclusive deals and rates from lenders, which can save money on their mortgage repayments.
There are some lenders who only operate through the intermediary of a mortgage broker, so you won’t be able to access these products if you go it alone with your mortgage application.
5. Completes and checks the application paperwork, speeding up the process
Mortgage brokers can help clients complete and check the paperwork for any omissions or errors before it goes to the lender. This can speed up the mortgage application process and reduce the likelihood of delays or complications.
6. Knows which lenders will work with unusual or more challenging circumstances
Mortgage brokers have specialist knowledge of the market and can find lenders that will work with clients who have poor credit history, only one years’ of self-employment accounts or other circumstances that many lenders won’t touch.
This means that clients with non-standard financial circumstances can still access mortgage products and get the best deal for their needs.
7. Is available to discuss your options with you, even when the banks or building societies are closed.
Mortgage brokers often offer clients flexible appointment times, including evenings and weekends and can are available to discuss options outside of standard banking hours. This can be particularly helpful for clients who work during the day and are unable to discuss their mortgage options during normal business hours.
8. Reviews your wider personal finances
Mortgage brokers can offer clients advice on wider personal finances, including protection and insurance products, to secure their financial future.
This can help clients to plan for unexpected events and ensure that their mortgage payments are protected if they are unable to work due to illness or injury. Many mortgage brokers offer life insurance, critical illness insurance and income protection products.
9. Is proactive around renewal on a fixed-rate product
Mortgage brokers can be proactive in finding clients a great deal if they are coming up for renewal on a fixed-rate product. This means that clients can switch to a new mortgage product and potentially save money on their mortgage repayments.
In the UK, you can apply for a new product if your renewal date is less than six months away, as many lenders will make remortgage offers that are valid for up to six months. Your mortgage broker will keep an eye on the market for you and make suggestions on when and where to apply based on your circumstances.
10. Is friendly and keen to help you own the home of your dreams.
Finally, mortgage brokers are very approachable. They enjoy working with people and are keen to help clients achieve their dream of owning their own home. They can offer support and guidance throughout the mortgage application process, making it easier and less stressful for clients.
Get your dream home; Use a mortgage broker to find the right deal for you
At Simmonds Mortgage Services, we love to chat about you and your dream property. Contact us today to find out about our personal service. Call 01184 693037 or email email@example.com to find out about current products that can help you find your next home.