A mortgage broker is an individual or a company who arranges your mortgage between you, the borrower, and a bank or building society – the lender. A mortgage broker is also sometimes called a mortgage adviser. They can sometimes deal with lenders from the whole of the market, sometimes be limited to a narrow panel of lenders or even just one lending institution.
What does a mortgage broker do?
A mortgage broker has an in-depth knowledge of the mortgage market and the products that will be available to you in your personal circumstances. They will provide advice on whether you will be able to get a mortgage and how to improve your chances of being successful with your application. Once you have decided to apply for a mortgage, they will also ask you a lot of questions and gather evidence of your financial situation such as your payslips and bank statements and create a file for you that they will use to apply for agreements in principle and, eventually, mortgage deals from lenders. They will help you with the mortgage application process and ensure that you know all of the details of the mortgage deal you have chosen. Whilst your mortgage is being processed by the lender, your mortgage broker will provide you with updates on its progress.
Some mortgage brokers work for one particular lender or a select few lenders, which is called a panel, and some brokers can be ‘whole of market’. Nottingham Mortgage Services are ‘whole of market’ and they can search over 60 lenders and thousands of mortgages in order to find the right one for you.
Why use a mortgage broker?
You could use a mortgage broker to help you look at a range of deals, potentially more than you could look at by yourself. Mortgage brokers are experts on different lender criteria, they will know whether you are likely to be accepted by each lender, and which lenders are the most likely to approve your mortgage at the most competitive rates for your circumstances. They are also there to offer advice on the application process and how much you may be able to afford with your deposit and monthly income. They may be able to advise on whether you want to continue saving for a while longer before you buy or whether you have enough deposit to get the sort of property you are after.
With Nottingham Mortgage Services, your broker will explain exactly what’s available to you from the products on the market and once you’re happy to move ahead your broker will process your paperwork for you. They will be the middle man between you and your lender which can make the process less stressful if there’s a lot of things to chase from your lender or vice versa.
Do I need a mortgage broker?
A mortgage broker is not essential for getting a mortgage but they can make the process simpler and easier by finding you the right deal for you if you wanted to look at more than one deal. You can apply for a mortgage on most lenders’ websites or in a branch if you have chosen a high-street lender but you will still be assigned a mortgage adviser for your case from that lender.
A mortgage broker could potentially find you a deal with a lender that you may have not considered. They may also be able to find you more competitive products, and due to the volume of mortgages they arrange with lots of lenders, sometimes have access to exclusive products that aren't available directly to the public and therefore could open the door to a wider range of deals to choose from.
How to choose a mortgage broker
Choosing a mortgage broker is a very personal thing and you should decide whether you want them to be ‘whole of market’ or simply work for one particular lender as this will affect the number of deals you are presented with and can choose from.
Questions to ask a mortgage broker
Some questions that you may want to ask a mortgage broker to ensure they are right for you are below:
- Do you search the whole of the market?
- What is included in your service?
- How much are your fees?
- How quickly will you be able to process the application?
- What will you need me to do in order to ensure a smooth application process?
How much does a mortgage broker cost?
Mortgage brokers will all have different costs for their services and it’s normal for them to earn a commission from lenders when they arrange a mortgage product. Some brokers will also charge a fee for finding your product, which will either be a percentage of the amount you want to borrow or it could be a flat rate. They will let you know about all of the fees before entering into a contract with you.
If you are interested in a whole of market mortgage broker, Nottingham Mortgage Services are here to help. Complete an online contact form and one of the team will be in touch.
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