- What do they do?
- Should I use one?
- Are they expensive?
- What do I need to ask or watch out for?
What do they do?
Mortgage brokers have access to several lenders and can go through the application process with you, while applying to multiple lenders and for various products on your behalf.
They will offer advice on affordability, best market deals, your likelihood of being accepted and so on.
Should I use one?
It is possible to apply for a mortgage without using a mortgage broker, you can apply directly, for example to your own bank, or to a number of lenders individually.
Brokers can save a lot of time for you however by taking your information from you once, but applying to various lenders on your behalf. They will be able to perform soft checks first, to save your credit rating being adversely impacted by multiple hard searches. Their access to the market combined with their financial expertise means they can often generate the best results and can advise you on the most suitable products for you.
Are they expensive?
Mortgage brokers usually add on a fee to the service and apply this once you have taken out a mortgage
It’s possible to find mortgage brokers who don’t charge a fee, such as Your Prosperity.
What to look out for
Make sure you’re aware of all charges before you sign up to a broker, usually this is if they are successful however make sure you won’t owe them if you don’t take out a product with them.
Don’t be afraid to ask if they are tied to particular lenders – some will work with a select few, or earn more commission for some of their lenders. There is nothing wrong in this in itself, but do be aware of it in case you’re restricting access to the market or you’re being encouraged towards a certain lender without knowing why.