60% of all mortgages are now arranged using the services of a mortgage broker. With more and more mortgage providers offering exclusive deals for customers using a broker, what are the pros and cons of seeking professional help when buying your new home.
Pros –
Simplify the process
Applying for a mortgage can be a complicated and time-consuming process.
There is a lot of complex language and hiring a mortgage broker can help to break down each stage into understandable chunks.
They will be sort through the multitude of different mortgage types available and work out the best option for you best upon your needs and eligibility.
When you apply for a mortgage, you need to provide an income statement, credit report, bank statements, and a list of expenditure and your mortgage broker will make sure all your documents are in order. They will also manage the paperwork throughout the process, of which there is a lot.
Secure exclusive deals
Many mortgage lenders will save their best deals for applicants who use a mortgage broker. If you attempt to go through the process alone there is a chance you end up paying a higher interest rate.
The worst mistake you can make when looking for a mortgage is to simply apply to the same company that you bank with. It may seem easy to simply keep all your money deals in the same place, but it is worth searching around to find the best deal.
Mortgage brokers will save you the painstaking effort of trawling through the hundreds of lenders offering the ‘best’ deal and bring you only the very best of options.
Brokers will also have connections within banks and building societies that can be used to ensure they are offered the very best deal and you can avoid pointless meetings with unsuitable lenders.
Help with Insurance
When you buy a new home taking out various forms of insurance can help protect you for the future. Life insurance, home insurance, and content insurance are all recommended to protect your own, and your family’s, future and a broker should be able to help you in this area as well.
Top professional brokers, such as us at CSR Financial Services, are experts in both mortgages and insurance and can provide a comprehensive service all the way from mortgage application to post-move cover.
No Upselling
Some mortgage lenders have in-house or associated brokers who are only able to offer you mortgage deals from their company. You should avoid such brokers and instead opt for a respected independent mortgage broker.
An independent broker has no vested interest in selling you a certain product and therefore will be solely focussed and securing you the best possible deal.
Personal Relationship
There are some online only broker services which will search the internet for a mortgage deal base upon your given information.
However, by using a professional mortgage advisor glasgow you will have someone to talk to if you have any questions whether by phone or in person. This will help you feel more in control of the process whilst still having the benefit of professional expertise and advice.
Cons –
Higher Fees
By hiring the services of a mortgage broker, you may have to pay a broker fee which could make the process of buying a house slightly more expensive.
Some broker fees are paid by the lender as opposed to you however, you should be wary of these type of deals as some brokers may suggest that you agree to a mortgage policy which sees them receive a larger fee.
Although you may be reluctant to pay a broker fee, it may actually work out cheaper in the long term as a good broker will be able to find you the best interest rates available. Not only are they fully trained to scour the market for the best rates, but they also have access to some exclusive deals which are not available directly to the customer.
Not every broker will secure you the best deal
Think you could find a deal as good as any mortgage broker? Well, you could try and there are certainly some brokers who will be unable to source a mortgage at a cheaper rate than you could yourself. It is always worth doing some research yourself to make sure that the deal your broker brings to you is good value.
If you choose a well-respected professional broker company such as CSR financial Services however, who receive excellent reviews and are authorised by the Financial Conduct Authority, you can be confident that you will not only find the perfect mortgage solution but will also receive excellent expert advice throughout the entire process.