4 Reasons Why You Should Use a Mortgage Broker
Updated: Jul 7
What does a mortgage broker do?
Ultimately, a mortgage broker’s job is to help find you the right mortgage for your needs. Here’s how they do just that:
1. Assess your requirements with a simple chat
As mortgage brokers, we start by arranging for one of our expert mortgage advisors to speak to you and assess your requirements. This includes looking into your current financial situation, listening to your requirements, and taking the time to understand your personal circumstances. We understand that your time is valuable, and so we try to take up as little of your time as possible and let you know if we can help you as soon as everything has been discussed.
2. Make recommendations that put your needs first
Once your situation has been assessed, we use our specialist knowledge of lenders and their criteria to find a suitable product to recommend to you. Here at Mortgage Thoughts, we operate with over 90 different lenders meaning that you wouldn’t be restricted to just one bank or building society’s lending criteria. Having this flexibility means that you’ll have a much better range of options to find the mortgage deal that’s right for you.
3. Deal with the application, so you don’t have to worry
Once a mortgage option has been decided upon and we have collected the necessary documents from you, the rest can be left in our hands. You don’t have to waste any of your time filling out paperwork since we manage the whole application process for you.
Why should you use a mortgage broker?
Now that you have a better understanding of what it is that a mortgage broker actually does, the next question is clear - why should you use a mortgage broker? Although some people may be happy and confident in applying straight to a single bank or building society, many home buyers feel a lot more comfortable using a mortgage broker for the following reasons.
1. Mortgage brokers will save you time
The process of applying for a mortgage can be quite lengthy and confusing, and your time is precious. By using a mortgage broker, you can greatly cut down on the time it takes since they already know the process inside and out. They will look at all of the deals available to you, meaning that you won’t have to trawl the internet and waste time ringing a variety of lenders to work out yourself what would be the best deal.
2. A Mortgage broker should save you money in the long run
Securing a lower interest rate can save you a huge amount of money over the full term of your mortgage. With so many different lenders out there, it can be difficult to find the lowest interest rate available whilst also ensuring you meet the lender’s criteria - a mortgage broker will do all of this work for you. Brokers also usually have access to better deals that may not be available on the market.
Even a small difference in interest rates can add up over the years. For example, if you were to take out a £200,000 mortgage over 25 years at an interest rate of 2.5%, you’d pay £897 per month. Over the 25 years, you’d pay £69,204 in interest. If the interest rate were to increase by just 1% to 3.5%, monthly payments would increase to £1,002 and you’d pay £100,477 in interest.
This shows how working with a mortgage broker can reduce regular outgoings and save you huge sums when you add all of this up.
3. A mortgage broker understands the lender criteria
Just by learning about your circumstances and requirements for a mortgage, a good mortgage broker will know which lenders are more likely to accept applicants like you. They know what information they need to see in order to improve your chances of being accepted, therefore cutting down on the time it will take to find an appropriate lender and deal for you.
4. A mortgage broker puts you in control and puts your needs first
A mortgage broker is a trained professional who understands the mortgage market and how it works. They can explain every step of the process to you and help you to feel in control of what is happening. A good broker will liaise between you and the lender, the lender and the estate agent, and the solicitor and the estate agent. They can help to push the process along and make everything much easier and smoother for you.
If you are looking at applying for a mortgage or would like some advice on the steps that you need to take, speak to Mortgage Thoughts today for a quick and easy consultation.