Buying a house can be complicated enough, but trying to sort out which mortgage is best, what the different rates are, etc, can be like trying to pick your way through a minefield. That's why using a mortgage broker is such a good idea, and one that more and more home buyers are starting to do.
Whereas previous generations of home buyers were content to simply arrange the mortgage through their banks, today's buyers are different. With the Internet offering new ways for people to look for deals on everything from home insurance to car loans, mortgage lenders are no longer the ones in control. However, using a mortgage broker is still more advisable than looking for offers by yourself.
Why a Mortgage Broker?
A mortgage broker is a certified professional and someone who has spent years training to become an expert in mortgages. Regulated by the Financial Services Authority (FSA), they have a strict set of guidelines that they must adhere to. This includes the information they give you, and the ethical decisions they make regarding any financial advice they provide to you.
Because of this, they are usually independent, which offers the potential home buyer the benefit of unbiased advice. Even if a broker belongs to a company, you should still be offered a greater choice when it comes to the type of mortgage you take out, as well as whom you take it out with. Compare this to banks and building societies, which usually try and arrange your mortgage solely with them, and the extra cost in using a broker are more than worth it.
What does a Mortgage Broker do?
Because they are such experts in their field, a mortgage broker can offer a host of services that you may not have received otherwise. As well as their advice, you can also expect a broker to:
- Find the mortgage that's right for you
- Access to thousands of different lenders nationwide
- Provide a "mortgage calculator" that will help you decide how much you can borrow
- Explaining the different mortgages - fixed rate or variable, self-certification or ad credit mortgage, etc
These are just some of the basic services that a broker can offer you. They can also help you arrange the best survey companies to use, close your paperwork, arrange legal fees and advice - pretty much anything connected with a mortgage, a broker can help you with. Additionally, a mortgage broker can also advise you on what additional costs you should include - for example, mortgage protection insurance and why you need it.
One of the biggest reasons many home buyers are put off using a mortgage broker is because of the extra cost involved - after all, they're already spending thousands on the property itself. However, the extra cost can often be included within the mortgage itself, and even if it's not, the few hundred pounds you spend on a broker's expertise could save you thousands in the long run.
If you're looking to buy a house soon, or even re-mortgage an existing property, speaking to a mortgage broker could save you more than you think, and is well worth the time and cost involved.