Getting a mortgage is one of the biggest financial decisions you’ll make, so it’s important to get it right. Rather than spending hours scrolling through comparison sites to sort this out yourself, the best option is to get help from a mortgage broker.
The mortgage broker or adviser’s role is to research the mortgage market on your behalf and help you find the best mortgage deal to suit your needs. An independent mortgage adviser is not restricted to any particular provider and will act solely in your best interests. You can therefore be confident that the deal they recommend will be the best available mortgage for your circumstances.
Your broker will talk you through the different types of mortgages you can choose from. Once they’ve recommended a mortgage for you, they can then guide you through the application process.
In this quick read, we look at why a mortgage broker could help you buy your dream home while saving you time and hassle.
1. Access to the right deals for you
Your mortgage adviser will recommend an appropriate mortgage for your needs and circumstances and have a wide knowledge of the mortgages available from different lenders.
An adviser might also be able to find a deal you can’t find on your own. They can improve your chances of being accepted for a mortgage, as they’ll know which lenders are best suited to your circumstances.
This is particularly important if you don’t have a large deposit, haven’t been with your employer for long or if you’re self-employed.
Not getting advice means you must take full responsibility for your mortgage decision.
If you don’t get advice, you could end up:
• with the wrong mortgage for your situation, which would be a costly mistake in the long run
• applying for a mortgage that doesn’t fit the lender’s lending criteria.
Brokers not only have access to high street lenders but to more specialist lenders, or to those that may not be easy to find through a Google search.
In a volatile mortgage market, a broker’s help could make a real difference to the amount you pay per month.
2. Gain a better understanding of your options
Mortgage brokers have years of experience working with lenders and could even be able to negotiate a better deal on your behalf.
There are many different mortgage variations that can be quite confusing. From variable, to fixed, tracker rates, interest-only, early repayment penalties… use a broker’s knowledge to your advantage and get them to explain what everything means.
Getting a mortgage isn’t always a straightforward process. Lenders need lots of information, which can be overwhelming alongside your other responsibilities, such as work and family.
A mortgage broker does the hard work for you. They’ll ask for your essential paperwork (such as identification, proof of address, payslips and so on) ahead of time so they can get on with the application on your behalf. They’ll also be able to chase lenders and get progress reports as your completion date nears.
3. Assist with your budget
There are plenty of online tools that can tell you what you can afford and how much you’ll be paying every month when you get a mortgage. But there’s nothing like speaking to someone who lives and breathes mortgage deals to really understand your budget.
Mortgage brokers are financial advisers, so they can break down your monthly costs and explore your outgoings in detail. Their advice could help save you money, reduce those (unwelcome) costs you may not have accounted for, and provide bespoke advice to suit your individual financial situation.
4. Boosts your chances of success
A mortgage broker will start by understanding your financial situation (an absolute must if you’re self-employed or have a chequered credit history). By doing this, they’ll be able to present your information in a way that helps a lender assess the risk you pose as a borrower and hopefully get you approved for a deal that may have otherwise been unlikely.
And if the worst happens and you’re not approved for a loan, they may be able to suggest other lenders that could look at your situation more favourably.
Remember that every unsuccessful mortgage application may harm your chances of success next time around, as each refusal will appear on your credit record. Using a mortgage adviser will maximise your chances of being accepted first time.
Contact us at Wainwrights Estate Agents, where we have access to trusted mortgage brokers and can recommend someone to work with you.