When it comes to looking and applying for a mortgage there are a variety of ways you can do this. Some people prefer to do all the research and apply themselves using comparison sites, some prefer to go direct to their bank. The majority of home buyers in the UK now use Mortgage Brokers to give mortgage advice and apply for the mortgage on their behalf.
It is estimated that around 80% of home buyers/home owners now use a mortgage company/broker for new purchases and remortgages. Some of the reasons for this are listed below –
- Access to most or the full mortgage market ensuring the best deal for a clients circumstances
- Access to sub-prime or bad credit lenders for clients with adverse credit
- Intermediary rates (discounted interest rates than going direct)
- Tailored mortgage advice based on an individuals requirements
- Simpler remortgage process so you are always on the best rate and mortgage product throughout the term of the mortgage.
When using a Mortgage Broker the role of the mortgage adviser/broker is essentially the same regardless of which company or individual adviser you choose. There are however, a number of subtle differences that you will find between different mortgage companies which ultimately dictate the level of service you are likely to receive.
The majority of mortgage companies now charge clients a mortgage advice fee. This is usually charged up front or at mortgage offer. This fee can vary massively from £195 up to 1% of the mortgage balance. It is good idea to confirm the fee with your adviser ahead of any applications being submitted, although advisers should always discuss this during your initial call or appointment.
There are also a number of mortgage companies available that do not charge a fee at all. This is a different type of business model that is ideal for a large number of home buyers, who potentially do not require the same depth of service to what a company that does charge a fee can offer.
Why do we charge a fee?
Here at Capital Mortgage UK we charge a fee, typically of £495. We apply this fee for a number of reasons –
- Allow us to spend more time with our clients providing a bespoke level of service
- To talk our clients through the full process from start to finish
- Being available to deal with client calls and emails as quickly as possible
- Liaise with other parts of the buying process such as placing client offers through the solicitors
- Make recommendations to other property professionals such as solicitors and estate agents
- Being able to submit applications quickly after having a property offer accepted – no long wait times
- Being able to protectively get your application to mortgage offer as soon as is possible.
By charging a fee for our service it allows us to give full attention to all our clients to ensure the buying process is as simple and as stress free as it possibly can be.
Warren Buffett – “Price is what you pay. Value is what you get.”
