Is it Better to Take Out a Mortgage Via a Broker?

Is it Better to Take Out a Mortgage Via a Broker?

Buying a property, whether it is for the first time or when you are further up the ladder is an exciting prospect. It is however, also a very serious business that involves a number of complex processes. One such process is that of finding and securing the best borrowing in order to finance the purchase. It is with this in mind that we ask – is it better to take out a mortgage via a broker?

What is a Mortgage Broker?

 A mortgage broker is an expert whose job it is to advise clients on how best to go about finding a mortgage and to help them search the market to find one that is best suited to them. There are a number of benefits that come along with using a mortgage broker and also one or two things to look out for.

Benefits of Using a Mortgage Broker

The most beneficial factor of using a mortgage broker is that they will do all the hard work for you and they will do it so much more quickly as they are already familiar with what is out there. They should provide you with a range of options, products that haven’t simply been picked because they offer the best interest rates, but because they are the most attractive packages – so the overall cost has been considered.

Also, what you are receiving from a mortgage broker is a type of financial advice and therefore the broker has a duty of care. This means they must operate with your best interests in mind – if they don’t you can complain and seek compensation.

Other benefits include expediency. For example, the broker may be able to help you communicate more effectively with your bank or other parties who are involved in the process.

Finally, your mortgage broker may be able to advise in other related areas. They may for instance talk to you about the various types of insurance you should consider as a property owner.

Things to Look Out For

One of the most important things to check is whether or not your broker is an independent broker or not. Some brokers only work with one lender or a group and in doing so they don’t scour the whole market when trying to find you a product.

In addition, brokers are not able to access all the products on the market and so you may miss out on the best deal for you. Before signing up to a mortgage broker service be sure to ask for a copy of their Key Facts Illustration (KFI), this will tell you how much of the market they can access, as well as other important information, such as costs.

It is often better to secure a mortgage via a broker, as long as you find the right one for you, not doing so could be more trouble than it is worth.

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