Mortgage advice from a reputable broker can be an invaluable service. If you have never used one before, our property experts explain why it’s always a good idea.
What does a mortgage broker do that you can’t? Why should you pay for their services when there are already many other costs when moving home or remortgaging? If you’re asking yourself these questions, it can be tempting to cut out the middleman, but there are some very good reasons to get help from the professionals.
The most important thing to understand is that, when you receive mortgage advice, your mortgage broker has a duty of care to you. That means they are obliged to recommend a suitable mortgage for you and your personal circumstances, and be able to justify why it is right. If their advice is not up to scratch, you could be eligible for compensation. In contrast, if you go directly to a high street mortgage lender without taking advice and end up with the wrong deal, there is not as much legal recourse. While it is also the lender’s responsibility to ensure affordability, a broker
offers a valuable layer of protection.
They are fully qualified.
There’s an awful lot to think about when choosing the right mortgage, it’s not as simple as just opting for the cheapest fixed or tracker rate mortgage you can find. Mortgage brokers must undertake formal training and achieve the appropriate qualifications before being able to provide mortgage advice. That’s not something you can guarantee when dealing with someone in a lender’s call centre.
A broker is on your side.
An independent mortgage broker has your best interests at heart and will look for the best mortgage for you right across the market, not just from one lender. Going directly to a bank means you’ll only be offered that bank’s products whereas a broker can offer you almost every lender’s product. You’ll receive unbiased advice and have the flexibility to choose from a range of products. More choice means better deals!
The know the industry.
Mortgage eligibility criteria has changed considerably over the last few years, 2020 in particular. The rules are designed to ensure borrowers can prove affordability, even in the event of a rate rise. That’s why it is important to have a broker on your side who understands it all. A broker deals with lenders day in, day out. They know what the application process is like for each one and which lender can process things with minimal delays. A broker also understands the background criteria that each lender is looking for and can bring this experience to bear when advising and processing your application.
They see the bigger picture.
A mortgage broker won’t just advise you about your mortgage. They will also look at any related life insurance, income protection and even any buildings and contents cover you have. They can recommend insurance based on your new mortgage arrangements, to make sure you are fully protected in the event of death, critical illness or redundancy.
The value of advice.
Mortgages are a lot more difficult than they first appear. Knowing what rate, term, lender, features and insurance to get are time-consuming and complex matters. Comparing mortgages on a site like Money Supermarket is a good start to get a feel for what’s out there, but choosing a mortgage is a process far more complicated than simply opting for the lowest rate or best incentives. A mortgage broker takes the time to understand your individual personal circumstances in depth up front. It is this thorough, expert look at your finances that makes their advice well worth it. Only then do they take a professional and unbiased view of all your options before recommending a suitable product.
How to get started?
If you are still on the fence about using a profession to find you the right mortgage deal, remember that a mortgage broker’s advice is free with no obligation. You can arrange a consultation over the phone, video call or in person.
At HOP, we have teamed up with the UK’s leading independent mortgage and protection brokers. Contact us today on 0113 322 9533 to find out more or arrange a free, no obligation appointment with our trusted advisor.
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