Mortgage broker vs bank

When it comes to choosing, Mortgage Broker Vs Bank. If you want to ensure that you are getting complete Advice and the cheapest product available to you. Then a whole of market Mortgage Broker is the only realistic option.

Taking out a Mortgage, for most, is the largest financial commitment you are ever going to make. Why wouldn’t you get a professional to handle this for you, which is able to guide you through the whole process from start to finish.

When you’re considering Mortgage Broker Vs Bank and you want to ensure you’re getting the cheapest product in the market. A Mortgage Broker is the only option. This is because a Bank can only advise on their Mortgage products. So if there’s a cheaper Mortgage out there for you, they will not be able to tell you.

When it comes to taking out a Mortgage that could be for hundreds of thousands of pounds, even a slight increase in interest rate could be the difference between you paying 1,000’s of pounds more in interest over the initial term. The average Mortgage in the UK is around £132,000. See the below example which represent how even a slight change in interest rate can make a big difference to the amount that you will pay overall:

An Interest Rate of 2% and a Mortgage term of 25 years equates to a monthly repayment of £559.

If the Interest Rate was 2.5% over the same term, the monthly repayment would be £33 per month more at £592 per month – meaning paying £396 more per year in interest when compared to the above.

    Can’t i use a comparison website to tell me whats going to be the cheapest?

    True, a comparison website is good for finding out the lowest Interest rate in the market. But the comparison websites won’t work out what the cheapest option is going to be for your individual circumstances.

    For example, comparison sites won’t look at other variables, such as the size of the Mortgage or whether the Mortgage product comes with Cashback, a Product Fee, Free Valuation or Free Legals. And most importantly, won’t take into account whether you will meet the Mortgage Lenders individual Criteria.

    Ultimately, you’re not getting advice on whether the Mortgage is the best for your needs. In addition, you will have to do everything yourself, which will take up your time.

    I’m on a tight budget and don’t think i can afford a mortgage broker

    If your case is straightforward or slightly complex. For example, one of the following; Contractor, Right to Buy, Shared Ownership, light adverse i.e. one small default (less than £500) over 3 years ago. Then in our opinion you shouldn’t pay more than £500 in total for Mortgage Advice. What your Advisor charges should be dependent on the size of the Mortgage and the complexity of your case.

    When you consider what is charged by Estate Agents and Solicitors, it really is a fraction of the coverall cost. And when you consider Mortgage Brokers are truly the only person that will be there from start to finish, that coupled with the below. Is it really worth the risk and extra time you will spend trying to tackle it on your own?


    key reasons to use a Mortgage broker

    If you’re still unconvinced, see some extra considerations below on what value Mortgage Brokers can bring to the process:

    • These days you can trust them, no really. Regulations have been hugely tightened since the financial crisis and rules bought in following the Mortgage Market Review in 2014, transformed the advice process to ensure responsible Lending. Mortgage Brokers must be professionally qualified (CeMap), be upfront and honest about any fees, provide customer centric advice and justify their reasons for the products recommended.
    • More than one Mortgage Lender to choose from.
    • They understand what is required from and the jargon used by Mortgage Lenders, Solicitors and Estate Agents and can act as the “middle-man” and explain and guide you through the whole process.
    • Mortgage Brokers often get exclusive rates that will not be available by going directly to the Mortgage Lender.
    • Expertise – they know the Mortgage Lenders Criteria, what they require and what their time scales are.
    • Save you time – Lenders will process Mortgage Applications received by Mortgage Brokers quicker than they would for customers going direct. Also, if customers apply directly, the lender is required to give customers advice and complete all the due diligence themselves. However, when you go through a Broker, the Lender will expect the Advisor to have done this already.
    • Relationship – Brokers have existing Relationships with the Mortgage Lenders and will have a direct contact to a Relationship Manager, who’s job is to help Mortgage Brokers bring business to the Lender.

    What you should look for in a mortgage Broker

    They are Whole of Market Mortgage Brokers – meaning they have access to a large panel of Mortgage Lenders

    Great reviews – this could be consistently high reviews you’ve spotted online. Or a Mortgage Broker a friend or family member has recommended.

    Fair fees – If an Advisor is charging you a fee, it is more than £500 and your case is relatively straight forward. It’s probably best to move on and find a different Advisor. If you’re happy with the Advisor you have found, see if you are able to negotiate their fee down.

    They are fully qualified and regulated by the Financial Conduct Authority

    our mortgage brokerS

    We work with a variety of Mortgage Brokers which each specialise in different Mortgage Advice areas. When you get in touch, simply select the reason why you’re getting in touch i.e. First time buyer, Bad Credit, Remortgage etc. And we will match you to the Mortgage Broker which Specialises in your circumstances.

    All of the Mortgage Brokers we work with are whole of market, fully CeMap qualified, regulated by the FCA, have fair fee policies in place and have consistently great reviews.

    Get in touch for a free non-obligatory conversation with one of our Specialist Mortgage Advisors for further information on how they can help you.

    get in touch for more information

    Whether you’re a first time buyer or simply looking to Remortgage. Get in touch with us today, so we can put you in touch with a Mortgage Advisor which Specialises in your case.

    We will only put you in touch with one Mortgage & Protection Advisor which Specialises in your individual circumstances. Your information will not be used for any other purpose.

    For more information or you would just like to find out more about us, please do get in touch