Almas Uddin
Founder and Mortgage Advisor
08 Nov 2019
What is a Mortgage Broker
A mortgage broker is someone who advises an applicant on as to what mortgage they should take. A broker will use their expert knowledge to get the best deal for the applicant. A mortgage broker is qualified and has been through rigorous regulation to have the right to advise you. Mortgage brokers are regulated by the Financial Conduct Authority the FCA and thus have a duty of care to the applicant.
Brokers work for the client, they are on your side and will aim to get the best deal for you. Independent mortgage brokers are not committed to any lender, they will provide you with impartial advice.
Mortgage Advisors are accountable and can’t just give any information or refer any product. The information provided has to be suitable and the broker has to justify as to why they recommended that particular mortgage. If you believe the broker has mis-sold a mortgage to you or has not treated you fairly you can complain to the FCA and even claim compensation.
A mortgage broker is open to the whole of the market and can advise all rates available rather than a high street lender which can only recommend products from their bank or building society. Brokers are not tied to one lender, they offer impartial advice and offer a wider range of products and lenders.
A good broker will also be aware of the changing criteria within the industry to make sure that the rates applicable to you. As brokers deal with lenders day today, they will have up to date knowledge on the criteria of lenders and will aim to make the process as smooth as possible without any hiccups. Furthermore, there is no substitute for experience in the mortgage market, and experienced brokers will tailor advice to suit your needs They will also provide more than just mortgages as they have access to both buildings and life insurance.
The Value of advice and comparison of rates.
The value of the advice that brokers can give can save applicants hundreds or even thousands of pounds whether this be through choosing a product with a low-interest rate or by arranging a mortgage that saves money on fees that the lender is looking to charge.
Are intermediaries a waste of money?
Most brokers will charge a flat fee of £500; this fee must be agreed up front however it will most likely save you money in the long term. Most Brokers have access to the whole of the market with specialist rates that you will not find with high street lenders. Brokers will also tailor mortgages to meet client’s specific needs and make sure all monthly payments are affordable before they choose a product.
Choosing the wrong product could cost applicants thousands of pounds.
If you decide to go directly to a lender, it could end up costing applicants thousands of pounds as lenders will not be whole of market, and you won’t be open to best deals available to you. If you do not have a broker, you could be languishing on lenders standard variable rate without knowing that you could be saving hundreds of pounds a week by switching mortgages. Your dedicated broker at RFB will ensure that you are always on the best rate available to you. Fees added on can confuse applicants causing them to pay more than they need to brokers will help candidates not to get tripped up by additional charges saving hundreds or thousands of pounds that they do not need to pay.
A good broker will assess an applicant’s needs through the use of fact find. A fact find is a set of questions that will allow the broker to get familiar with the client and assess what their personal circumstances, their personal commitments, what the applicant is looking to achieve and introducing some mortgage products. They will then identify which product is most suitable for the client and provide them with an appropriate recommendation. The difference between a broker and a good mortgage broker is that they not only identify the customer’s needs now but also their future circumstances and securing the relatively long term outcome.
Following the FCA’s mortgage market review (MMR) lenders now have to ask much more detailed questions of borrowers, brokers will assess mortgage affordability, credit commitments second income and if there is a second applicant. This interview can last a couple of hours, but they allow mortgage brokers to gain the best understanding of what is available to applicants.
Brokers will explain all mortgage-related jargon so that the mortgage process does not daunt applicants, and so they know exactly what they are purchasing.
Brokers will ensure the borrower is matched to the right lender they will do this by making sure that the applicant's circumstances match the lender's criteria you don’t want the application to be rejected due to not knowing rules. Inevitably the broker is not lending you the money, but an agent can put you in the best possible scenario for you to get lending
A mortgage broker will request documentations such as proof of identification as well as proof of income this is the standard that all lenders will ask for. With a broker, all documentation will be vetted before being sent to the lender to make the process as smooth as possible.
Conclusion:
Why using a broker is the best way to get a mortgage
There are rates online that applicants can find or they can go to their high street lender, however picking a mortgage product online or finding something on the high street can be meaningless if you as the applicant do not qualify for the loan.
When you apply for a mortgage, you can be confident that Revolution Finance Brokers will provide you with a dedicated contact, who will give you a loan that you do qualify for.
Brokers are also impartial they are open to the whole of market and are not biased to any mortgage lender.
A mortgage broker will also likely save you hundreds of pounds a month as they are experienced enough to know what rates are the best and which deals are available.
Contact us now to discuss your personal options, Revolution Finance Brokers specialise in commercial and residential finance in Essex, Kent, London and Hertfordshire.
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