When you are looking to buy or refinance a property and need to get a mortgage, several options are available. You can contact your lender directly, or you can contact a mortgage broker. However, a mortgage broker will help you find a lender and apply for a mortgage.
A mortgage broker is a licensed specialist who can work with multiple lenders to find the best possible mortgage for their clients. The advantage of using a mortgage broker is that they have relationships with several lenders and can match you with the best and least expensive lender based on your needs. For example, a broker can be very useful for first time buyers and applicants with low credit scores. Mortgage brokers can also assist borrowers in gathering the necessary documents and filling out a mortgage application.
Direct referral to the lender and use of the services of a broker each have advantages and disadvantages. But if you are interested in using mortgage broker services, this article is a good way to find a good mortgage broker because depending on where you live, and there are probably at least several and maybe many mortgage brokers to choose from.
Do your homework
Before you look for a broker, be prepared and have a clear idea of the mortgage type you want. This way, you will be in a strong position to evaluate the broker’s recommendations. Then contact several brokers to compare what each one can provide. It is also important to remember that brokers do not necessarily find borrowers with lower interest rates or cheaper mortgages.
Search locally
A property advisor and friends and neighbours who have recently used a broker can recommend one or more mortgage brokers in the area.
Search online with Mortgage Broker
If you are new to the area and have no local connections, you can look for a mortgage broker online. Many websites provide a list of the “best” local brokers, although the criteria for selecting them are not always clear.
Check their license
Mortgage brokers are regulated by legal entities and operate in standards for licensing and registration of institutions. In the UK, mortgage agents are required by law to register with the Financial Conduct Authority (FCA) to be eligible for mortgage advice. Among other requirements, mortgage brokers must take certain courses, pass a written test, and submit their records to the legislature.
Check their access to the entire market.
It is best to find a broker described as a “whole market”. This means that they will have access to any mortgage available in the market. This contrasts with some brokers who only seek mortgages from a selected panel or affiliated with a particular bank or community. A market broker can help you find more options and increase your chances of finding the best deal.
Compare costs
Referral to a mortgage broker will also incur additional costs. However, keep in mind that they can find a better deal for you to save much money. However, comparing the rates that different brokers receive can be useful for you to see what you can do to maximise this savings while also getting good service.
It is also a good idea to check how brokers receive their fees. Some expect to pay the deposit, but others will only be paid after agreeing to the mortgage. Even their cost will be added to the mortgage, but some will combine the two. Look for a mortgage broker who will use the payment method you prefer. The lender also pays some brokers, but many brokers use two payment systems. In this regard, try to receive clear and accurate information.
Compare services
In addition to comparing prices and payment methods between mortgage brokers, comparing the services they can provide can be helpful. Many web-based mortgage brokers go through this process and help borrowers find full online advice. On the other hand, some traditional brokers work in person or by phone. And some may combine the two. Think about what is best for you and look for an agency that works for your needs.
Read other customers’ comments.
Comparing mortgage brokers is easy by word of mouth and reading customer reviews. Some mortgage brokers provide review services on their websites, but you can also check what people say on social media.
Availability
Your schedule is one of the most important things to consider when looking for a mortgage broker. When comparing brokers, try to figure out how fast they can work on your file. Consider how well their processes fit into your timeline so that you can complete your application perfectly. You should also find their working hours to see when you can call them for help and advice.
Trust your emotions
Once you have checked the brokers based on their services, payment and reputation, you may still select a number of them. In this case, remember that getting a mortgage is an important life event, and you are also going to share personal information such as finances with your broker. Therefore, you should feel comfortable working with them. Otherwise, this process will be very stressful for you. If you do not feel that you can trust a broker or that they do not feel comfortable talking to you or giving you advice, it may be worthwhile to look at someone else.
Ask about their list of lenders.
Brokers are limited by the list of banks they can access. A good broker will have a wide range of lenders on their panel and regularly use a wide range depending on the borrower’s circumstances. If a broker has a limited number, it indicates that they are focused on a small range of lenders and can limit your options. Despite market research claims, many brokers transfer mortgages to a small group of banks.
Examine their ownership structure
Ask your broker who or who owns it. In many cases, they are owned or partly owned by large banks. In fact, out of every ten mortgages that brokers make, seven mortgages from consolidators belong to the bank (this is a business that operates between banks and brokers).
These business relationships can impair consulting quality and encourage brokers to sell you mortgages directly to the brokerage bank. Good brokers are not affected by the structure of their property and will recommend a wide range of mortgages from all over the market.
The importance of using SWG Mortgage advisors
There are many types of mortgages on the market, and SWG Mortgage advisors help borrowers find several options and clearly explain their reasons for recommending specific mortgages.
SWG Mortgage advisors have years of experience working on various cases and work with a wide range of lenders. They will give you the right options to choose from based on your needs and circumstances.