What Does a Mortgage Broker Do
Buying a house involves organising a lot of things and making sure your documents are in order. You’ll also want to find out which mortgage lender has the most beneficial mortgages for your situation. This can cost you a lot of time, and you may wonder if you can get the best possible deal, but a mortgage broker can you help from start to finish when you’re thinking of buying a house, which will save you a lot of time and stress.
The Role of a Mortgage Broker
A mortgage broker can be a person or a company and will help you arrange a mortgage between you and the mortgage lender. The mortgage broker works directly with you to help you decide what kind of mortgage best suits your situation and will then work on finding the best deal matching your criteria. It doesn’t matter whether you’re buying a house for the first time, or whether you’re looking to re-mortgage your current property.
A Mortgage Broker or a Mortgage Agent
You might be wondering if a mortgage broker is different from a mortgage agent, and which route to follow.
The Mortgage Broker
A mortgage broker specialises in mortgages and will act on your behalf. A broker for mortgages is an intermediary between the mortgage company / lender and the client. A mortgage broker will ask questions based around the property you are looking to buy or remortgage, mortgage type, your homeowner status and your financial situation. The mortgage broker then acts on your behalf to find the best possible mortgage deals to suit your circumstances.
Mortgage Broker Benefits
You can enjoy a hands-off approach and have the mortgage broker source the market so you will potentially find a suitable mortgage in a short period of time. This can also mean less stress for you, and there is a good chance that a mortgage broker will find you a much better deal than the one you find for yourself. A mortgage broker is regulated by the FCA (Financial Conduct Authority) and will provide the best advice and solution they can.
- Personalised one to one service from start to completion with no obligations placed on the client
- All the paperwork is handled by the broker on your behalf
- Always acting in your best interests
- A mortgage broker will do all the searching for you whilst you carry on with your normal day to day life
The Role of a Mortgage Lender / Agent
Mortgage lenders have a variety of mortgages which appeal to people who want mortgages for different reasons. A lender will tell you only about their own mortgage products, and many mortgage products will be found only through a mortgage broker.
Banks have their own mortgage lending departments to sell mortgages to people who are looking to buy a house. Each bank will have a set criteria (includes credit score and income checks) for each applicant and application and you will have to show that you will be able to afford the repayments.
The mortgage lender will also
- Determine the mortgage terms
- Decides on the interest rate
- Decides on the amount of the monthly repayment
Why Use a Mortgage Broker?
Finding and applying for a mortgage can often be a big hassle. If you don’t know what you’re doing, or you’re a first time buyer, using a mortgage broker can be a huge relief. The mortgage broker can help you find and apply for the mortgage while making sure you get the best deal available to suit your needs.
Some of the tasks a mortgage broker will do for you:
- help you to assess your financial situation
- suggest the most suitable mortgage for your situation
- searching all the market to find the best deals that match what you are looking for
More Benefits of Going to a Mortgage Broker
Benefits of using a mortgage broker can extend beyond the obvious. For instance, a mortgage broker can ensure convenience, where you don’t have to have any knowledge to navigate the finance and mortgage markets – you can leave it all to a mortgage broker. Choosing the wrong mortgage can impact you and your finances for years, so getting it right is essential.
- Also, there’s the element of time which goes into all the paperwork needed and speaking to the lenders. Having a mortgage broker, means you’ll be able to focus more on things like decor and furniture for your house.
- An established mortgage broker will more likely have strong direct relationships with lenders in the finance and mortgage markets than you could ever hope to achieve yourself. This means that a mortgage broker will be able to contact a wide range of lenders which will increase your chances of finding the best deal to fit your criteria.
- Expertise. A mortgage broker will have already studied the markets and know all there is to know about mortgages. When interest rates fluctuate regularly, a mortgage broker knows exactly what signs to look for and how these signs relate to getting you the best mortgage deals. They’ll also be able to explain this to you in such a way that you will understand why a particular mortgage deal is good right now.
Hidden Advantages of Using a Mortgage Broker
A hidden advantage of using a mortgage broker is that you may actually end up saving hundreds to thousands of pounds. In some cases, connections that mortgage brokers have with lenders are so valuable that the mortgage broker is able on occasion to get the lender to lower their fees.
Mortgage Broker Fees and Quotes
For transparency, there are usually costs associated with using a mortgage broker but getting quotes is free of charge
- Some brokers may ask for a fee up front
- Some brokers are paid a fee directly by the lender when a mortgage has been agreed
A mortgage broker is highly qualified and offers a professional service. There are some things you need to keep in mind.
A good ethical broker, will steer you towards the best deal for you and not towards a more expensive loan that will net the broker a bigger fee. So asking a broker to act on your behalf really can prove to be a far better option.
Get in Touch with a Mortgage Broker
A mortgage quote from a mortgage broker is the first step. The end decision which includes terms and specifics, however, will always be with the lender and a mortgage broker can follow through with lender on your behalf.
Prime Financial Solutions and Mortgages Ltd
If you need help with Life Insurance and any of the following, Prime can help – telephone 01942 665 436:
- Life Insurance
- Critical Illness Cover
- Income Protection
- First Time Buyers
- House Purchases
- Self Employed and Contractors
- Self Build
- Buy to Let
PRIME FOR WIGAN & UK – A LEADING LIFE INSURANCE AND MORTGAGE BROKER
Setting up a mortgage can be a very time consuming and frustrating experience. At Prime you always have an exceptional FCA approved team of mortgage specialists and life insurance specialists there for you. We provide excellent one to one services tailor made to your own individual needs and we make your time with us completely hassle free – we do all the heavy lifting for you. Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive on a regular basis from customers in Wigan and across the UK, in person, on Trust Pilot and Google online.
Perhaps you have questions you would like answers to? Like..will you help me with a remortgage? Am I eligible to get a mortgage and do I meet all requirements? I am a first time buyer can you help me? How great does my credit rating have to be to be approved for a mortgage? Our dedicated team of experts can answer any questions you might have.
It can be hard to decide which agent or broker you want to find the best deal for you, because there are so many in the UK. Luckily, we are a leading UK certified mortgage broker and we know our way around the mortgage market like the back of our hand. You can rest assured that Prime Financial Solutions and Mortgages Ltd knows where the best deals are and how to get them. What are you waiting for? Contact us today and we will start your mortgage search.
To find out more about us you can you can go here and if you would also like to find out about our life insurance services you can Click here to get a free Quote or you can use our quick contact form and we will be in touch. Our experts are available during office hours telephone 01942 665 436.