Do I need a mortgage broker for a remortgage? | Pros & Cons

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Do I need a mortgage broker for a remortgage?

Do I need a mortgage broker to remortgage?
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    With around 3.4 million homeowners coming to the end of their mortgage fixed deal during 2023, the big question is ‘When is the best time to remortgage?’

    The stamp duty holiday freeze during the pandemic led to an influx of new borrowers who locked in 2-year fixed deals at historically low-interest rates, which are now expiring in 2023 or early 2024.

    The big question I’m being asked is: ‘Do I need a mortgage broker for a re-mortgage?’ so this blog will explain why using a mortgage broker could be a good move.

    Remortgages are essentially moving from one product to another, either with the same lender or a different one and can happen for a variety of reasons:

    • Fixed deal is expiring
    • Extend mortgage term
    • Extend mortgage amount
    • Debt consolidation
    • Home improvements
    • Take advantage of lower interest rate
    • Change in personal circumstances

    The pros and cons of using a mortgage broker

    Using a mortgage broker to secure a remortgage can be beneficial because brokers have a vast knowledge of the current mortgage market and are experts in evaluating which product is best suited to your specific circumstances. In addition, lenders give brokers access to special deals which are not available directly to the public.

    By searching the whole of the market, a mortgage broker can find the best product for you. As you can imagine, researching the market can be time-consuming so using a broker can significantly speed up the process of finding the right deal.

    On the other hand, using a broker might incur an additional fee for advice and mortgage application services which would need to be taken into account when calculating the total cost of remortgaging. Mortgage broker fees can vary widely, so it’s a good idea to shop around.

    Depending on your personal views, you may want to be more in control of the remortgage process so this is another consideration when deciding whether you need a mortgage broker for a remortgage.

    Finally, it’s vital to trust the person you appoint as your mortgage broker. You need to have confidence that the advice you are receiving is unbiased and personalised to your situation.

    Factors to consider when deciding if you need a mortgage broker for a remortgage

    Your personal financial situation may be a consideration when deciding if you need a mortgage broker for your remortgage. If your credit score and financial history isn’t exactly impeccable, then a mortgage broker who specialises in products for those with poor scores could be a good investment.

    Similarly, if your income and employment history make it challenging for you to easily remortgage with your current lender, then ask a mortgage broker to search the whole of the market to find suitable lenders and products for you.

    Another factor in the decision about whether you need to use a mortgage broker for remortgage advice is the personal time you have available to research the different options. If you are comfortable using the Internet to compare different products and their criteria, then you may be able to find an appropriate deal yourself.

    If, however, you are busy or you don’t feel well equipped to correctly analyse the options, a mortgage broker can provide this service to you. Brokers spend a lot of their time keeping up with the current trends in the mortgage market so they can provide up-to-date information to borrowers.

    This knowledge acquisition is time-consuming so this is what you are paying for when you engage a mortgage specialist to help you locate the best deal for you.

    Alternatives to using a mortgage broker for remortgaging

    Many borrowers, when looking at remortgage financing, will start with their current lender as the first option. However, this may not provide the best product for their needs so it’s worth considering a mortgage broker vs. bank as your first port of call.

    If you are looking for remortgage deals, you could seek suggestions from family and friends who have recently remortgaged, you could do your own research on the web. However, please be aware that this information can often be out of date or misleading, so tread carefully.

    Remortgaging made easy

    If you want to remortgage but you don’t know where to start looking for the right deal, contact Simmonds Mortgage Services to let us take the strain out of your search. Email info@simmondsmortgage.co.uk or call us on 01184 693037 for a free no-obligation chat about your circumstances.

    Connect with me and Daniel on Linkedin to find out more.

    For even more benefits of a mortgage broker, check out our recent on why you need to be using a mortgage broker.

    Picture of Andrew Simmonds

    Andrew Simmonds

    Andrew Simmonds is the managing director at Simmonds Mortgage Services. He's been providing mortgage advice to home owners for many years.

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