Buying a new home is an exciting time, but it can also be a little intimidating if you don’t have the right knowledge and support to help you through the process. One of the ways that many people get assistance when buying a property is using the services of a mortgage broker, who provides advice and recommendations on choosing the right product. In our latest article we explore the benefits of using a broker for your mortgage needs and look into ways to advise and assist on one of the biggest financial commitments you will make.
First steps
The first benefit of mortgage broker partnerships is that they can scan the entire marketplace for the right product that suits you and your situation and have access to corners of the industry that are out of sight for the general public, and so the chances of you securing a better deal are higher. Many lenders go directly to brokers to offer them exclusive mortgage deals too, which have better rates of interest, fewer fees attached and flexibility, which you wouldn’t have access to without a professional.
Independent financial advice
An adviser that provides independent advice is able to consider and recommend all types of retail investment products that could meet your needs and objectives. Independent advisers will also consider products from all firms across the market and have to give unbiased and unrestricted advice whilst being regulated by the Financial Conduct Authority (FCA).
You could save money
In addition to time, you could also save money by using a mortgage broker. Not only are you getting an expert who can find a good deal, but you’re getting someone who will assess your needs and make a recommendation that is right for you financially. A good broker will also look beyond the best rate and take any applicable fees into account.
Relationships and loyalty
A brokers leading duty is to his or her client. Brokers look at building customer loyalty and long-term relationships and spend time getting to know and understand the needs of their clients. Once established, a good broker will help their clients throughout their home buying lives and continue to assist with future mortgages and insurance requests.
Protecting your credit score
Your credit score is a critical parameter in securing a home loan. When you apply for a loan directly to a lender, they run a credit check, which gets recorded as an enquiry in a borrower’s credit file. Multiple enquiries could adversely impact your score. On the other hand, checks run by mortgage brokers do not get recorded as an enquiry and therefore leave no footprint. So, if you are doing some research and exploring your options, using a broker will ensure that there is no impact on your credit score.
Offer professional services
You’re likely not a professional in the mortgage industry, but obviously, brokers are. Using a broker guarantees you good advice on buying a home or refinancing your mortgage. Since this market is fast-paced and changes often, it’s best to have a dedicated professional who works solely for you. Mortgages can be confusing, but a broker can simplify the process. Just like you wouldn’t try to navigate the legal industry without a lawyer, the same goes for mortgages.
Essential insurance
This is an area that your broker can usually help you with as well. In addition to giving you mortgage advice, they can typically advise on what insurance products will be best for you, as well as helping with the subsequent applications. It’s another service they can provide to make your life much easier.
Saves time
Finding the right mortgage lender can be a lot of work. On top of what you already have on your plate, it’s no secret that buying a home can be a stressful experience. You already need to think about securing an estate agent, finding properties, saving your money and working out a budget. Finding a professional to actually approve you for a mortgage is one more task to add to your to-do list. Using a broker takes away the stress of finding a lender, as they take care of this for you.
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