A mortgage broker can help you search the market to find the best deal for your situation. These brokers are especially useful for those in unusual situations.
A mortgage broker is available to anyone who needs it.
AnybodyA mortgage broker is a person who can help you get a mortgage. This can be especially helpful if you:
- You would like to receive advice about mortgage options
- You are considering remortgaging your home and want to make sure you get the best deal
- You can rely on irregular freelance and self-employed earnings
- You are raising a mortgage for a second property in order to pay the deposit.
- You need a bridge loan
What are the benefits of using a mortgage broker to help you?
- The market is well-known and mortgage brokers are up to date on the most recent deals and products.
- They are familiar with lenders who will be comfortable lending to people in unusual situations
- The mortgage brokers can offer guidance and advice throughout the process, and they will also be your advocate with the lenders to make it easier.
- Sometimes, they can get better deals than what you would get if you went directly to the lender.
What should I do then?
1. Learn about mortgages and what the differences are between them. Our guides on types of mortgages and mortgages made simpleThese are a great place to start, or if you just need a refresher. This guide is for first mortgages. steps to getting your first mortgageIf you’re remortgaging, our may also be helpful.remortgaging made easy guide helpful.
2. To get an idea of the amount you can borrow with your deposit, you can use online comparison tables. If you’re looking to remortgage, contact your bank to find out what they have to offer.
3. Consider mortgage arrangement fees and other expenses. When you are looking for a mortgage deal it is easy to simply compare the interest rates, but the mortgage fees and costs can make a significant difference to what you end up paying.
3. Ask a fee-free broker for advice. We’ve teamed up with L&C, the UK’s leading fee-free mortgage broker. They may be able offer a better deal if you already have a great deal. You may be able to save thousands, and if you don’t, you won’t lose anything.
Documentation provided by your mortgage broker
You should receive an “Initial Disclosure Document” from your broker that explains what service they offer, how many mortgages they can recommend, and whether or not they can give advice. It also outlines the cost of the service.
Brokers will want to know everything about you and your current financial situation. You should be prepared to show evidence. They will ask you about your monthly expenses and what you believe you can afford. Ask them any questions.
Watch out for these things when you use a mortgage broker
Certain mortgage brokers have a relationship with specific lenders and will only recommend mortgages from them. Others recommend a restricted number of lenders. They can still claim to “whole market broker” if their selections are representative of the market. This could mean you miss great deals.
You should also be aware that some mortgage lenders don’t offer mortgages through brokers and you may miss out on certain deals. This applies to FirstDirect and HSBC, as well as ING Direct. Only certain brokers can offer mortgages. Your broker should confirm which lenders are included and excluded.
Avoid brokers who charge you fees and opt instead for mortgage companies that charge you.