A first-time homebuyer might think it is quite easy to find a house and secure a mortgage. But things are not that easy. It could be quite risky and irresponsible to do it without expert advice. Mortgage lenders are quick to see if someone is a newbie. You might get a good deal on your own, but often, it is the opposite.
Homebuyers stand to gain more from getting mortgage advice from an expert, as mortgage loan applications are challenging.
What is a mortgage broker?
A mortgage broker specialises in sourcing the most suitable mortgage deal for a client. The thing to consider when hiring one is that there is an independent broker who can find mortgages across the UK. On the other hand, a tied mortgage broker is affiliated with particular mortgage providers, so they are limited in their access.
The broker acts as an intermediary who helps a mortgage applicant find the right match to the type of mortgage deal and lender that fits the applicant’s circumstances. The broker charges a fee from the applicant or the lender. At other times, the applicant and the lender pay the broker a fee for facilitating the process.
The fee covers expert advice from the broker. If you are from Kent and looking for help with your mortgage application, find a local expert, such as mortgage broker Kent, who has extensive knowledge of the property market in the area and can give you the best deal you can afford.
Reasons to hire a mortgage broker
You will receive several benefits from hiring a mortgage broker.
- A broker has access to a bigger selection of various mortgage deals that are usually inaccessible to mortgage borrowers.
- Moreover, the broker usually has extensive knowledge of the mortgage market and can determine which mortgage deal will suit the borrower.
- Borrowers with low/bad credit scores or other special circumstances can still have a chance to secure a mortgage loan with the help of a broker, who has access to lenders who can offer them a mortgage.
- They understand the criteria and preferences of many lenders because they work with several of them. Their knowledge makes it easier to find the most suitable one to fit the client’s circumstances. Moreover, specialist brokers can help the self-employed and freelancers who cannot provide regular payslips to prove their income.
- With mortgage brokers, finding the appropriate lender and finalising the contract becomes faster, helping the borrower buy the property of their choice.
- Brokers use software that helps them immediately find offers matching the criteria of the borrowers. Using a mortgage broker removes the hassle of searching for the right mortgage, minimising paperwork, and talking with various lenders, which can take too much time.
You gain several advantages when you seek the help of a professional mortgage broker. However, ensure that you are only dealing with a mortgage broker regulated by the Financial Conduct Authority (FCA) for your protection. They should have recognised qualifications like Cert MA (Chartered Insurance Institute Certificate in Mortgage Advice) or CeMAP (IFS School of Finance Certificate in Mortgage Advice and Practice).