In this article we look at what the benefits are of you using a mortgage broker for your mortgage at various stages of the home ownership process. It is now estimated that around 80% of the UK use a mortgage broker to secure lending for a property purchase or remortgage. In these uncertain times the role of the mortgage broker has again increased in importance to ensure you are making the right decisions when it comes to your mortgage and receiving the correct professional advice.
First time buyers & Home movers
Buying a property can be a very stressful experience, whether that be your first purchase or if you have bought property in the past. Using a mortgage broker should take a lot of the stress out of the process should you be advised correctly as they will deal with a lot of the moving parts of the buying process for you.
Mortgage brokers have access to intermediary rates which typically means you could be eligible for more preferential deals with many lenders than going direct to those lenders as a customer. Brokers also have access to most if not all of the mortgage market which means they have a panel of lenders totaling over 100 lenders for most brokers. This means clients should get the best deal for their overall circumstances. Many mortgage applications are not entirely straightforward – many have complex income or historical credit issues which is not always acceptable to the more high street lenders. Your mortgage adviser will be able to advise you what the correct lender and product is recommended for these circumstances. Going direct to your high street lender, they will only have access to their own products and not the full market.
Remortgage
Similarly to when you buy a property your mortgage broker will have access to the full market of mortgage companies and will advise you what your best option for your personal circumstances. Your mortgage broker will give you all the professional advice you require to make the correct decisions. Since your initial mortgage application your circumstances may have changed which means it is very important to discuss these with your adviser. For instance your credit situation may have improved since the last application, your income situation may have changed or perhaps you are looking to change the term of your mortgage.
Should you still use a broker to product transfer with the same lender?
Whether you have used a broker or have went direct to your high street bank for your mortgage it would still be a good idea to contact a mortgage broker for mortgage advice now and for the future. Regardless of how you obtained your mortgage initially your current lender will write to you with an offer to product switch with them to remain their customer for another fixed rate period. If you used a mortgage broker initially then they will also contact you in advance to discuss you options.
Looking at all your options it could be the best option is to stick with the same lender and lock in a new fixed rate product. Even if the rate the broker has access is to product switch with the same lender it would still be recommended to allow the broker to complete the formalities – this would ensure the broker is aware of the situation for the future and is able to manage your mortgage and advise you throughout the remaining term. If you were to complete yourself or direct with the bank the broker would be unaware of the situation and less able to advise you accordingly at a later date. Most if not all brokers do not charge any fees for a product transfer and is a good way for a client to get onto a mortgage brokers client list. While switching rates with the same lender may be the best option for some now, in the future this may not be the best option.
*** This article is also not to be taken as advice – we recommend you take mortgage advice from your mortgage adviser. Figures and examples used are for illustration purposes only. ***
