Why Use A Broker?
There have been a number of regulatory changes over the last few years which have had a huge impact on the way that lenders assess your mortgage application. They will investigate fully your financial circumstances to satisfy themselves that the mortgage is affordable to you both now and in the future.
These changes mean that the application process may take much longer than before and it can be hard to know at first glance if you will meet a lenders criteria. This is where the expertise of your mortgage broker comes into its own. They will be able to know which lenders will likely accept your circumstances and will be able to make sure that you are getting the right mortgage for you.
It is important to remember that your Broker in effect works for you and therefore has a duty of care to provide you with the right advice, and this is not limited to your mortgage. They will also look at your protection needs and advise you on a suitable mix of products to support you and your family if the worse was to happen.
A good broker will also help you throughout the process, helping to make sure both your solicitors and estate agents are fully updated and aware of the progress of your application. At the end of the day your broker is on your side and are here to get you the most suitable mortgage and protection.
Whole of Market or Comprehensive Panel
Some brokers will class themselves as ‘Whole of Market’ others will be classed as having a ‘Comprehensive Panel’. In order to be a whole of market broker you need to be able to offer every product on the market. In reality this is not something that can be fully achieved as there invariable will be a lender who is offering a direct only option, or a special offer specific to certain brokers.
Those who use a Comprehensive Panel will generally have all of the main high street banks as well as lenders that are only available to brokers. They may also have special offers that will not be available to other brokers. It is also important to note that those who work with a panel often have the option of going ‘off panel’ if there is a better product for you.
Why do Some Brokers Charge a Fee?
Ultimately the main answer to this is that a broker is providing you with a service and are tailoring their advice to your circumstances, and in order to be able to provide this service they need to make money. They will take a professional look at your finances, take into account your circumstances and provide you with suitable advice.
James Daley of the website Fairer Finance said “Making the wrong choice about your mortgage can cost you hundreds – even thousands of pounds- more than you need to pay.*”This means that any broker fee could be offset by the saving of getting the right product.