Do you need a mortgage broker?

Last updated: March 2021 | 2 min read

Getting a mortgage broker can help speed up the process of getting a mortgage. However, there are some important aspects relating to mortgage brokers you should be aware of before you hire one.

When are mortgage brokers particularly helpful?

Mortgage brokers can be used by anyone looking to buy a new home. Particularly, mortgage brokers are helpful if:

  • You need advice on which kind of mortgage you should get
  • You are entirely dependent on freelance earnings
  • You require a bridging loan
  • You want to get a mortgage on another property to pay a deposit on the first one

What are the advantages of using a mortgage broker?

  • Mortgage brokers are familiar with most of the mortgage products and deals available in the market
  • A mortgage broker will be aware of the lending criteria of various mortgage products
  • A mortgage broker may also provide advice and guide you throughout the process making the process less stressful for you
  • Some mortgage brokers get deals which are better than the ones a mortgage lender will offer directly to you

What you should know before you hire a mortgage broker

Some mortgage lenders have a working relationship with a few mortgage lenders and will only recommend their mortgages. While others, whilst claiming to be whole market brokers, will recommend a mortgage from a limited selection of lenders.

You should also be aware that some mortgage lenders do not offer mortgages through mortgage lenders. The list of such mortgage lenders includes HSBC and FirstDirect. Therefore, you may miss out on some mortgage products and deals. So you should get a list of mortgage lenders which are included and which mortgage lenders are excluded.

Further, it would be best if you avoid using a mortgage broker which charge fees to you. Instead, you should hire mortgage brokers who charge the mortgage companies.

Your mortgage broker may also offer some in-house services such as contents and buildings insurance. It would help if you did not go for such in-house services unless you have surveyed the market of similar services.

It would help enormously if you did a little research on mortgages so that you are aware of the basic types and the differences between them. Our article on which kind of mortgage should you get is the perfect place to start your research. You may also find our article on remortgaging helpful if you are remortgaging.

Should you get a mortgage through your estate agent?

Some estate agents provide in-house services such as managing your mortgage. However, you should never use their services until you have shopped around. This is since some estate agents do not charge upfront and almost always getting a commission which you will be paying for. Further, they are also likely to a far less variety of mortgages and deals.

So you can find out what deals the estate agent is offering. However, you are not bound to accept any mortgage offer they give you.

How can you complain against a mortgage lender or broker?

First, you will have to complain in writing to the mortgage lender or mortgage broker. If your complaint is not resolved within 8 weeks, then you should approach the Financial Ombudsman Service.

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