Using a mortgage broker can save time and legwork in finding the right deal. That’s because brokers can access a broad range of lenders (with many brokers having access to deals from across the whole market), using software to identify the most suitable products.
A broker will also have expertise in the market so they can help you make the right decisions based on your circumstances. This means they can crunch the numbers to work out the best value product, in terms of the total cost of a deal, taking into account the interest rate, the arrangement fees and the duration of the deal.
Most brokers can also help with specialist needs and requirements, such as guarantor mortgages and other products designed to help first-time buyers.
They can also help source deals for borrowers with lower credit scores, or products suitable for self-employed homeowners, for example. They can help find those lenders that are most likely to accept you, and also show you how you can improve your chances of getting a deal.
Most brokers will be able to compare and advise on residential and buy-to-let mortgages as well as mortgages for holiday homes. Some may be able to help with sourcing secured loans and also commercial borrowing, such as mortgages for small businesses and companies.
Finally, another reason to use a broker is that if you’re later unhappy with the suitability of the mortgage you can complain about the broker’s advice to the Financial Ombudsman Service (FOS). In contrast, if you take a mortgage product directly from the lender without advice you won’t be able to complain to the FOS if you later feel the mortgage isn’t really appropriate or suitable for your needs.
If you take a mortgage product without advice you can still complain to the FOS about the lender if something goes wrong for example around your repayments or service levels.
