There is a lot to think about when you are trying to find a mortgage – and it isn’t a simple process. You have to think beyond the cheapest deals and rates and find the best solution that will work for your personal situation. And, of course, everyone’s needs are very different.
Finding a mortgage broker can help you get the best deal for your situation. You can draw on years of experience, you will get someone on your side, and you get protection and a duty of care. However, you have to be able to choose the right broker, and in this guide, we’re going to show you what to look out for. Let’s get started with some of the basics.
What is a mortgage broker?
A mortgage broker is an independent party that can find you a better deal, as well as saving you money on extras like household or life insurance. They will take a little commission while you save more in the long run. Anyone can use a mortgage broker, but they are of exceptional value if you are self-employed or have a poor credit rating.
What distinguishes a good broker from the rest?
There are thousands of mortgage brokers around in any one area, and like anything in life, some are great, and some are not so good. So, your first step is to slim down your options. You should always look for a broker that specialises in your situation. For example, if you are self-employed, you need someone on board that has had plenty of success with similar cases as yours in the past.
Should I use an independent broker?
Absolutely. Mortgage brokers that have ties with lenders or estate agents won’t be able to offer you the full spectrum of deals. They will have a deal in place with a particular bank, so, their recommendations will be somewhat tainted. An independent broker will take the whole market into consideration and try and get the best deal on the table for you.
Where do I find recommendations?
First of all, ask family and friends if they can recommend a broker. Word of mouth is always a good place to start. You can also look up review websites and make sure that your broker of choice has plenty of happy customers. There are lots of guides out there on choosing an agent and buying a new home – check this one from Mortgage Masters to get you started. You can also check your local papers for personal finance articles. Many reputable brokers write articles or are asked for their thoughts on finance by journalists.
How much do they cost?
Finally, it is essential to understand how much your broker charges for their services. Some will take an upfront fee; others will get a commission from the mortgage lender. And, as we have already mentioned, they may get a deal with your insurance package, too. Reputable mortgage lenders will be happy to share these details with you. If there is a hint of doubt, move on to the next one.
Good luck with your search – and enjoy your new home!