When it comes to buying a property, the chances of needing a mortgage to finance it are somewhere between very likely and unavoidable. But going to the right mortgage broker, rather than your bank directly, can pay dividends.
Miles Robinson, Head of Mortgages at online brokerage Trussle (our mortgage partner), helped us break down the benefits whether you’re a first-time buyer, mover or remortgage.
1. Access to a much wider selection of offers
By going directly to a bank or a building society, you will only have access to the mortgage offers that they offer. A good mortgage broker, on the other hand, will scour every corner of the market to find the best deals for your situation.
However, it is important to note the difference between a “tied” broker who is limited to a panel of lenders, and a “wide market” broker, who can advise on products from a wide range of lenders (although this may exclude some who only accept direct applications from clients).
Trussle advisors have access to over 12,000 different mortgage offers from 90 lenders, which is the widest range available.
2. Experts to match a mortgage to your needs
Navigating the maze of mortgages can seem daunting with so many different types of deals on offer. They can also change frequently, especially when interest rates fluctuate. You can see what’s available now in our table below.
A broker will help you find the right mortgage based on your deposit size, income (or joint income if you’re buying with someone else), and broader personal circumstances.
They will explain the different types of mortgages, such as a fix or a follow-up, and advise you on the length and flexibility of the deal depending on your needs and stage of life.
If you’re a first-time buyer, a broker can help you with programs such as co-ownership, the stock loan assistance program, or even the ability to group up and buy with friends.
3. Take the steps on your behalf
A Mortgage Broker will drive the entire mortgage process, from the initial mortgage search to getting an “in-principle mortgage” (which shows how much you can borrow based on the information you provide) , through to the request, offer and completion process (when funds are released).
A broker knows the extensive paperwork associated with applying for a mortgage and can explain how key information – such as childcare costs or an annual premium – should be presented.
At Trussle, you can track the progress of your application from your online profile that you created at the start of the process. This is also where you upload all relevant documents in digital format.
4. Increase your chances of success
As part of your application, a lender will perform a credit check to see how well you have handled your loans in the past. The higher your credit score, the more likely you are to be accepted for the mortgage.
Something as small as a missed payment on a cellphone contract could impact your credit score, making it harder to get approved. But dealing with a past “credit problem” is part of a broker’s daily job. They will assess your finances and do what they can to improve your chances of being approved.
A broker will also be familiar with how each lender’s affordability ratings work, which again gives you the best chance of acceptance. Trussle promises to deliver a decision on your mortgage within a maximum of five days, otherwise it will pay you £100.
Free mortgage advice
Trussle is a Trustpilot 5-star rated online mortgage advisor who can help you find the right mortgage – and do all the hard work with the lender to secure it. *Your home can be repossessed if you don’t continue to pay your mortgage.
5. Use Lender Relationships
As they do every day, brokers have longstanding relationships with lenders. They will, for example, have regular conversations about criteria updates and policy changes. This can really give you an edge when it comes to getting the all-important green light for your home loan.
6. Help if your income is not simple
If you are self-employed and/or your income is uneven or comes from different sources, for example, the experience of a broker can be particularly useful.
They will have experience dealing with these types of requests – which can potentially be more difficult – and will target your request based on what they know about a bank or lending company’s profile and lending criteria. special construction.
7. Offer a reminder to remortgage
Even after your mortgage is ready, a broker will remind you when it’s time to remortgage, which means moving on to a new deal once your current contract ends. This minimizes the chances of slipping on your lender’s potentially expensive standard variable rate.
And if you’re looking to borrow more against your current mortgage (like to build an extension on your house, for example), a broker will be able to tell you how much you could borrow as well as how best to apply for the funds.
8. It doesn’t have to cost a penny
While some brokers charge an ‘advisory fee’ or ‘processing fee’ for arranging your mortgage – which can amount to around £500 – many others, including Trussle, are completely free to the client.
Instead, they take payment from the lender when you complete your mortgage or remortgage. This is done via what is known as “power of attorney fees” or “procedure fees” for short.
But an advisor will not receive a commission based on the amount of your loan or the choice of lender. Their only motivation is to get you the most suitable offer.
And if you choose to use a broker and change your mind, there are no strings attached. You can choose to opt out of the process or even go directly to the lender.