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5 Tips for Picking the Right Mortgage Broker

choosing the right mortgage

Experts believe that the size of the UK mortgage industry will increase between 2018 and 2019. This is mainly due to a more liquid marketplace and lower interest rates. If you are hoping to secure a mortgage, it is always wise to address a handful of issues. Let’s look at five methods which will enable you to secure a reputable and trustworthy broker.

1. Perform In-Depth Research

First and foremost, always perform a copious amount of research. In order to save time and aggravation, it is a good idea to use the services of third-party portals such as The Guardian. These objective websites will explain the basics as well as what factors are the most important.

2. Learn About Different Products

Every lender will offer a different set of financial products. Of course, some are able to provide more targeted services than others. It is wise to choose a firm which attempts to cater to the needs of individual clients as opposed to taking a “blanket” approach. For example, UK mortgage broker Habito provides 24/7 customer support, technical lender analyses and a dedicated customer service specialist. Much of the guesswork will therefore be removed from the equation.

3. Be Clear With Associated Fees and Commissions

Typical mortgage fees will equate to approximately £500 pounds or 1.5 percent of the value of the mortgage. However, this might not always be the case and some lenders will charge significantly more. Additional commissions might also apply; causing you to spend more money than was initially anticipated. This is why such charges should be made clear from the very beginning. If the company is unable to provide you with these details, it is wise to look elsewhere.

4. Ask the Right Questions

Think of a mortgage as a long-term investment; perhaps one of the most important investments of your life. You will need to ask the right questions in order to obtain an appreciation of the “big picture”. Some suggestions include:

  • Will you be subject to fixed or variable interest rates?
  • What is the total length of the mortgage?
  • Does the lender offer other products such as a home insurance policy?
  • Is the company registered with the proper governmental bodies?

Never be afraid to address these issues from the very beginning.

5. Communication, Courtesy and Clarity

These “three C’s” are critical within any business relationship. While important from a financial point of view, they are also meant to provide you with the insight and clarity required to make the most informed decisions when the time is right. If any are not adequately met, you would be prudent to seek the advice of another mortgage lender.

Securing a mortgage is an important concern for any would-be homeowner, so the steps involved should never be taken lightly. If you would like to obtain other financially sound advice, be sure to subscribe to Property Talk and check back on a regular basis.