Wondering if using a mortgage broker is the right choice for you?
Getting a mortgage is one of the biggest financial decisions you’ll ever have to make. While saving money and finding deals yourself might sound like an appealing option, remember the sheer amount you’ll be borrowing. Getting a property isn’t like buying a holiday, a shed or even a car. Not only is it possibly the most expensive thing you’ll ever buy, but if you end up with a bad mortgage deal, it can be tricky to try and sort it out later.
With such a huge choice to make, it’s always a good idea to get some advice from an expert. That’s where online mortgage brokers come in.
Designed to help reduce some of the stress, these financial advisers are specialised in finding their clients the right mortgage deal while also commenting on other costs you might have to deal with during the buying process: building insurance, conveyancing, stamp duty etc.
So why should you use one? Read on to find out!
What is a Mortgage Broker?
Whether you use an online mortgage broker, or meet a physical person, they’re both there to accomplish the same goal: to find you the best mortgage deal.
They essentially act as a middle man between you and the lender, saving you the legwork of chasing down deals yourself and advising you on the best options for your situation.
A bank or building society will often have limited mortgage products and definitely won’t let you know about any other deals out there. Not so with a mortgage broker. As this is their business, they are obliged to go through all the deals they can find and recommend you the best one, as well as explain why.
Plus, there’s always one advantage that, no matter how hard you try on your own, you probably won’t be able to match: their scope. There are literally thousands of mortgage deals on the UK market, all different depending on your current financial/housing situation. You could spend MONTHS tracking down all the deals yourself and end up finding out that you can’t even qualify for the deal you’re searching for.
Don’t stress yourself out.
Give a mortgage broker a few details and you’ll be saving yourself a lot of time and effort in the long run.
There are a few different kinds of broker, so make sure you do your research to find out which one could be best for you.
Online Mortgage Brokers
You can do basically anything online now and finding the right mortgage is no exception.
Thanks to the digital age we now live in, plenty of businesses have essentially become 24/7, with websites not having to close for the day or take an hour for lunch. A lot of us either work odd hours or don’t have the time to get to the bank when they’re open, meaning getting an appointment can be an annoyingly long and difficult task. Not the case with an online mortgage broker.
By doing everything online, you can find mortgage deals without having to leave the comfort of your own home! (Or even your own bed if you’re more of a night owl). With an online mortgage broker, there’s an element of speed that you just can’t get with a face-to-face meeting. With a lot of mortgage calculators, it essentially functions the same way as a Google search: you’ll enter a few basic details and then you’ll be listed all the deals that you could qualify for. Perfect if you’re looking a quick summary of your potential mortgage options.
Many are also drawn to online mortgage brokers because of the cost. While the price of the service will vary from business to business, many online mortgage brokers won’t charge a fee for their initial search. This can be great if you just want an overview of deals, though many will require more details and may charge if you choose to take your application further with them.
Physical Mortgage Brokers
The internet has made so many things more accessible, but some people still prefer not to use an online mortgage broker. This is especially true for those in more complicated situations or who would prefer an actual person explaining the details to them. Luckily, physical mortgage brokers have a lot of the same perks.
Many can work around a hectic schedule, offering to call or meet you at times outside of regular business hours. While an online mortgage broker is great for those who are short on time, having an actual meeting can be a better option for those who’d like to properly discuss the deals available.
Most physical mortgage brokers will have access to the same number of mortgages as online services and will be able to move your application on immediately.
Many also prefer them because they can offer a more personalised service. With someone directly in front of you, there can be a more open dialogue, and they’ll be able to answer any questions you might have. They will also often offer to investigate other deals for you, like life insurance and stamp duty.
While they won’t be able to meet you in the middle of the night and will usually charge a fee for their services, a physical broker could be the way to go if you have a more difficult situation, are really unsure about anything, or would just prefer to talk to an actual human being about your finances.
At the end of the day, it’s up to you what kind of mortgage broker you use, or if you even use one at all! Any mortgage product will be a substantial financial commitment, so make sure you do all you can to find the best deal.