When searching for a new home and beginning to think about the mortgage application process, it may cross your mind; “Why should I use a mortgage broker when my bank is offering to give me a great product anyway?” It’s common that many people don’t understand the difference between the two options. There are also a few misconceptions about mortgage brokers which have become common financial folklore. Here we tackle a few of the reasons why your perceptions may be incorrect, and shed some light on why using a mortgage broker could save you both time and money in the long run.
Using a mortgage broker will cost me more money
Some financial advisors and professionals will often tell you to avoid mortgage brokers because of the additional fees they charge. In many cases, this can be true. Many brokers will charge a separate fee for their services. They will obtain the fees for their services by charging customers an up-front fee – usually between £400 and £500.
At 177 Mortgages we pride ourselves on the fact that since our inception we have never charged any brokerage fees to our clients.
Mortgage brokers will hide additional fees and charges
You should always check any fees you are paying to ensure that you are not paying for services which have already been paid for. Many brokers charge customers a fee and receive commission from lenders and insurance providers. In many cases getting paid twice!
At 177 Mortgages, we are completely transparent, and we only collect the commission payment from the lender that you secure your mortgage with.
Using a mortgage broker won’t find me a better deal
As opposed to an online quotation or an off-the-shelf product from your bank, a broker’s main objective should be to find you the most affordable product. This should be tailored to meet your unique circumstances, needs and goals. The mortgage market consists of multiple lenders offering multiple products. Working with a mortgage broker can help you find a better overall deal and service.
177 Mortgages have access to the entire mortgage market including traditional high street banks and building societies and specialist lenders. We will spend time scouring and researching the mortgage market to provide you with a recommendation best suited to your needs. We can also help you find a tailored solution to your financial protection needs.
Mortgage brokers add little value to the process
It is often thought that mortgage brokers are not able to add much value to the application process, but this is far from the case. The services a mortgage broker offer includes things you would not otherwise benefit from if you were to apply directly through your bank or present lender. These can save you a substantial amount of time, stress and money.
At 177 Mortgages, our service continues right through from initial enquiry to completion and beyond. You will be assigned a dedicated case manager who will be able to assist with any queries, questions, paperwork issues and more, to ensure the application process is as stress-free as possible.
Mortgage brokers work for banks and lenders
177 Mortgages are a completely independent brokerage service. Though we have built strong relationships with many banks and specialist lenders, we remain completely detached from any exclusivity or bias. When researching a product for a client, we remain focused on their needs and negotiate solely on their behalf to ensure their needs are met. Leveraging the strength of our existing relationships with lenders to help in the negotiation process.
A mortgage broker cannot help me, as I have bad credit
Having a poor credit history can often be seen as having a negative impact on your ability to obtain a mortgage. The range of lenders and products available to you may be reduced, but you should not give up hope. If you have been rejected by a lender due to past bad credit issues, a mortgage broker may be able to help.
At 177 Mortgages we work with a wide network of lenders. We will search the mortgage market to see if there is a product out there for you or provide advice to help get your credit back in check.
I don’t need a mortgage broker as my bank has promised me the best rate possible
As loyal customers of your bank, they should be rewarding you with the best mortgage rate possible. As much as we would like to believe this to be the case, it is invariably not. Sadly, many banks will not shop around for you and simply offer you the nearest ‘off the shelf’ product they have that fits their limited overview of your circumstances. By using a broker, you will not only have access to the rest of the mortgage market but by using their expertise and knowledge they can often access better rates.
As our services are offered completely fee-free, we always ask: what do you have to lose?
Mortgage brokers don’t care about me as an individual
Your relationship with 177 Mortgages is for more than just the completion of your mortgage. We will be in touch to ensure you are ready when any existing deal is due for renewal – and you can contact us if your circumstances change during the life of your mortgage. Your personal broker and case manager will work with you for as long as we have a relationship. No call centres, no waiting times, no menus – straight through to your dedicated broker first time, every time.
Whether you are applying for your first mortgage or looking for a remortgage, if you choose to work directly with a lender, keep in mind that you should plan to spend ample time shopping around. You will need to invest this time to ensure you find the best deal on your mortgage – but remember that you will only have access to a very limited number of products. You should also ensure that you are well-versed in translating mortgage terms and concepts.
Working with a mortgage broker to undertake the search and negotiation work for you to find you the best product for your personal circumstances, will save you time, stress and money. To speak to an adviser free of charge with no obligation, get in touch with us today or request a call-back.