Almas Uddin
Founder and Mortgage Advisor
21 Sep 2023
When it comes to securing a mortgage, the traditional route often involves searching on the high street or conducting a quick Google search to find lenders. However, there's a lesser-known avenue that offers exclusive benefits: broker-only mortgage lenders. These lenders operate exclusively through mortgage brokers and can provide deals that sometimes outshine those offered by mainstream lenders. In this comprehensive guide, we'll delve into the world of broker-exclusive mortgage lenders, exploring the benefits they offer, the types of deals available, how to access them, and more.
Understanding Broker-Only Mortgage Lenders
A broker-only mortgage lender, also known as an intermediary-only mortgage lender, is a unique type of mortgage provider accessible solely through mortgage brokers. They don't engage directly with the general public but offer exclusive deals to customers who work with mortgage brokers.
The advantages of opting for a broker-only mortgage lender are manifold:
Diverse Range of Rates and Products - Broker-exclusive lenders provide a broader spectrum of mortgage rates, deals, and products, allowing you to find the ideal fit for your financial situation and goals.
Flexible Mortgage Features - These lenders often offer flexible features, such as uncapped overpayments and extended mortgage terms, giving you greater control over your mortgage.
Higher Approval Chances - For complex mortgage scenarios, such as those involving bad credit, broker-only lenders may have higher approval rates compared to mainstream lenders.
Expert Broker Guidance - When you work with a mortgage broker, you receive personalised advice tailored to your specific needs, ensuring you make informed decisions.
While mainstream lenders can also offer competitive rates and approve mortgages for various customers, the inclusion of broker-exclusive mortgage providers expands your options. Your mortgage broker will diligently compare high street lender offers with these exclusive deals, ultimately enhancing your chances of securing the best mortgage for your needs.
Notable Broker-Exclusive Mortgage Lenders
Several prominent broker-exclusive mortgage lenders in the UK market offer a diverse array of mortgage solutions. These lenders include:
- Accord Mortgages
- Platform
- The Mortgage Lender
- Pepper Money
- Precise
- Aldermore
- Kent Reliance
- Vida Homeloans
- Kensington
- Paragon
- Monmouthshire BS
- Mpowered
- Bluestone Mortgages
- Foundation Home Loans
- Tandem Bank
- The Mortgage Works
- BM Solutions (Birmingham Midshires)
- Godiva Mortgages
- Keystone
When you choose to apply for a mortgage through a broker, you gain access to an extensive list of mainstream lenders and the exclusive options listed above. This substantial increase in choices allows you to explore various product ranges and find the mortgage solution that aligns perfectly with your financial goals.
In addition to these dedicated broker-only lenders, some mainstream lenders also offer broker-exclusive mortgage deals. These deals comprise special interest rates and products exclusively available to customers applying through a mortgage broker.
Accessing Favourable Rates and Deals
Broker-exclusive mortgage lenders can often provide lower interest rates compared to high street mortgage providers. While this isn't a universal rule, your mortgage broker will carefully compare the rates offered by broker-exclusive lenders with those from mainstream lenders, providing you with expert advice.
For some borrowers, flexibility and increased approval chances are crucial factors. While broker-exclusive lenders may not always offer the lowest rates, their broader range of options enhances your chances of securing a mortgage that perfectly suits your needs.
Consider the following table, which showcases how rates from broker-only lenders compare to those of high street mortgage providers:
|
Mortgage Lender
|
Initial Interest Rate
|
Product Details
|
|
Accord Mortgages (broker only)
|
4.01%
|
2 year tracker, £1,030 fee, 60% max LTV
|
|
Kensington (broker only)
|
5.45%
|
5 year fixed, £1,317 fee, 75% max LTV
|
|
Precise (broker only)
|
5%
|
5 year fixed, £1,020 fee, 75% max LTV
|
|
Halifax
|
4.35%
|
10 year fixed, £1,099 fee, 60% max LTV
|
|
Virgin Money
|
4.10%
|
2 year tracker, £1,300 fee, 60% max LTV
|
|
Natwest
|
4.38%
|
5 year fixed, £1,025 fee, 60% max LTV
|
While some broker-exclusive mortgages may appear to have slightly higher rates, it's essential to understand that this comparison highlights the significance of having access to a broader spectrum of options. For instance, deals from lenders like Kensington and Precise may have lower deposit requirements and shorter fixed terms compared to mainstream offerings.
Furthermore, lenders exclusively working through intermediaries often excel at securing mortgages for borrowers facing challenging circumstances, such as a history of bad credit. In such cases, mainstream lenders might either offer significantly higher rates or reject the application altogether.
Accessing a Broker-Only Mortgage Lender
Engaging the services of a mortgage broker unlocks a world of opportunities, providing access to an extensive range of lenders and products. This accessibility is just one of the compelling reasons to utilise a mortgage broker when seeking home finance.
While there's no guarantee that everyone will secure a better deal through a broker-exclusive mortgage lender, the increased array of options heightens your chances of mortgage approval. It also improves your likelihood of discovering the perfect mortgage deal tailored to your unique circumstances.
Essentially, broker-exclusive mortgage lenders offer a distinct advantage in the realm of home financing. By collaborating with a mortgage broker, you gain access to a wealth of options, including both mainstream and exclusive deals. This expanded selection increases your chances of securing favourable rates, flexible terms, and higher approval rates, ultimately leading you to the perfect mortgage solution for your needs. Don't miss out on the benefits of broker-exclusive mortgage lenders – explore this avenue with the guidance of a trusted mortgage broker to unlock your path to better deals and financial security.
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