When it comes to buying property, the chances of needing a mortgage to fund it are somewhere between very likely and inevitable. But going to the right mortgage broker, rather than straight to your bank, can pay dividends.
Miles Robinson, head of mortgages at online broker Trussle (our mortgage partner), helped us break down the benefits, whether you are a first-time buyer, home-mover or remortgager.
1. Access to a much broader selection of deals
Going direct to a bank or building society means you will only have access to the mortgage deals it offers. By contrast, a good mortgage broker will scour all corners of the market to uncover the deals that are best suited to your circumstances.
It’s important to note however, the difference between a ‘tied’ broker which is limited to a panel of lenders, and ‘whole of market’ broker, which can advise on products from a wide range of lenders (although this may exclude some which only accept only accept applications direct from customers).
The advisors at Trussle have access to more than 12,000 different mortgage deals from 90 lenders, which is the widest range available.
2. Experts in matching a mortgage to your needs
Navigating the mortgage maze can feel daunting with so many different types of deals on offer. They can also change frequently, especially when interest rates move. You can see what’s available now at our table below.
A broker will help you find the right mortgage based on the size of your deposit, your income (or joint income if you are buying with someone else) and wider personal circumstances.
They will explain about the different mortgage types, such as a fix or a tracker, and advise on the length of term and flexibility of deal depending on your needs and stage of life.
If you’re a first time buyer, a broker can help with schemes such as Shared Ownership, the Help to Buy Equity loan scheme, or even the possibility of clubbing together and buying with friends.
3. Carry out the legwork on your behalf
A mortgage broker will drive the entire mortgage process from the initial mortgage search, to getting a ‘mortgage in principle’ agreed (which indicates how much you may be able to borrow based on the information you provide), through to the application process, offer and completion (when the funds are released).
A broker is familiar with the considerable paperwork associated with a mortgage application and can explain how key information – such as childcare costs, or an annual bonus – should be presented.
At Trussle, you can track the progress of your application from your online profile which you set up at the start of the process. It’s also where you upload all the relevant documents in digital format.
4. Boost your chances of a successful application
As part of your application, a lender will carry out a credit check to see how well you’ve managed your any lending in the past. The higher your credit score, the more likely you are to be accepted for the mortgage.
A detail as small as a missed payment on a mobile phone contract could impact your credit score making it harder to get approved. But dealing with a past ‘credit blip’ is all in a day’s work for a broker. They will assess your finances and do what they can to improve your chances of being approved.
A broker will also be familiar with how each lender’s affordability assessments work which, again, gives you the best chance of acceptance. Trussle promises to provide a decision on your mortgage in no more than five days, else it will pay you £100.
Free Mortgage Advice
Trussle is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage – and do all the hard work with the lender to secure it. *Your home may be repossessed if you do not keep up repayments on your mortgage.
5. Use relationships with lenders
As it’s what they do all day every day, brokers have long-established relationships with lenders. They will, for example, have regular conversations about criteria updates and policy changes. This can really put you at an advantage when it comes to getting the all-important green light for your home loan.
6. Help if your income is not straightforward
If you are self-employed and/ or your income is patchy or from different sources, say, a broker’s experience can come in especially handy.
They will have experience of dealing with these types of applications – which can potentially be more challenging – and will target your application based on what they know about the profile and lending criteria of a particular bank or building society.
7. Offer a reminder to remortgage
Even after your mortgage is up and running, a broker will remind you when it’s time to remortgage – which means switching to a new deal once your current one ends. This minimizes the chances of slipping on to your lender’s potentially costly standard variable rate.
And if you are looking to borrow more against your current mortgage (such as to build an extension on your home for example), a broker will be able to tell you how much you could borrow as well as how best to apply for the funds.
8. It doesn’t need to cost a penny
While some brokers charge an ‘advice fee’ or ‘processing fee’ to arrange your mortgage – which could be around £500 – many others, including Trussle, are completely fee-free to the customer.
Instead they take payment from the lender when you complete your mortgage or remortgage. This is via what is known as a ‘procuration fee’ or ‘proc fee’ for short.
But an adviser won’t be paid a commission based on the size of your loan or choice of lender. Their only motivation is to get you the most suitable deal.
And if you choose to use a broker and then change your mind, there are no strings attached. You can opt to back out of the process or even go to the lender direct.