Even today there seems to be a general misconception of what a mortgage broker actually does and what value they can add when searching for a mortgage. It is often assumed that brokers do no more than approach banks, building societies, and scour the internet searching for the best deal.
However, a broker’s responsibility stems far beyond that. Below is an outline of what a mortgage broker does, and why their services should be considered.
Brokers can tell you in seconds what the cheapest rate in the market is. At various times this will vary between a direct to lender product or a broker-only deal but this misses the point. Can this product actually be attained and is it the best to fit your personal circumstances?
Through a simple conversation about your personal situation, brokers will begin to build a profile of your unique requirements. They’ll know what products are available like the back of their hand and are qualified to offer advice accordingly.
Every day we hear tales of woe from all areas of the consumer market about people who bought the cheapest products which turned out to have a sting in the tail and cost a lot more in the long run.
A good professional mortgage broker provides a service that a borrower cannot obtain directly from a lender, and certainly not from a comparison site. Neither of which actually advises on all of the best products in the market. What’s more, a broker will have exclusive access to deals that are not available to the mass market, they’ll also be able to talk about direct deals as part of their overall analysis.
A mortgage is one of the single biggest financial commitments a person can have in their lifetime, so do you really want to make that decision on your own? For those who are happy to go it alone, we live in a digital age where the internet is a wealth of information. However, the cheapest product does not necessarily take into account the myriad of personal requirements and future flexibilities a client may need.
Therefore first-time buyers, who may need a hand to hold throughout the process, should always look to obtain proper advice from a professional broker. Similarly, for high net worth individuals, the whole range of highly competitive products available through Private Banks who offer a blank sheet of paper approach to underwriting, remain the preserve of the more respected broker.
For those who are generally time poor or need to move quickly, the efficiency of service that a broker can provide may take the pain and hassle out of the process ensuring deadlines are met with ease, without you breaking a sweat.
There are two key themes here, choice and advice. A professional broker will be able to look at every product on the market as well as some that are available exclusively through the mortgage broking market only.
By going direct a lender can only talk about their own products and some may not ultimately provide perhaps the most important bit, advice. Selecting a mortgage without taking full advice and comparing all the options available is a risky game, especially with all the small print and fees that surround mortgage products.
The small fee paid to a broker can save thousands of pounds over the term of a mortgage and may help you to avoid costly penalties in the future.
Securing the property of your dreams often means moving quickly and many larger brokers have immediate access to the decision-makers. This can be invaluable if you were previously facing the lengthy process of walking into a branch, waiting for an appointment, and then waiting even longer for any kind of decision. In letting a broker handle your application, any potential issues can often be anticipated and the whole process smoothed out.
Helping a busy client to complete the mortgage application, prepare all the documentation and liaise with the lender, valuer, estate agent, and solicitor to ensure deadlines are hit is a time-consuming process and this is all part of the broker’s service.
Knowing which lenders are able to proceed quickly and which ones have a paperwork backlog can be the difference between actually getting the property you want vs losing out.
The customer service also extends beyond the completion of your application. There’s an aftercare service as standard, not only looking at how clients can ensure they are able to both repay the loan and protect their new home and family but advising them each time their product comes up for renewal or their circumstances change mid-term.
There are not many professional services left that provide all this for a relatively modicum fee.
At Coreco we pride ourselves on our professional service. The days of a broker simply looking down a list of products, pointing at the cheapest, and pocketing the commissions are thankfully long gone. As mortgage criteria toughen and regulations are tightened, qualified, reliable, and respected mortgage advisers who provide genuine advice and proper relationship-based services are, and always will be, in demand.