What does a broker do?
A mortgage broker acts as the middleman between you and your potential lender, this could be a bank or other finance provider. As a qualified position, a mortgage broker will get to understand your financial position and get a feel for what options are available to you.
The main information a mortgage broker will want to know before being able to assist you is Income and where it is from, type of property you want, your outgoings and expenditure, deposit amount, and a number of others.
The reason this information is required is so that the broker can do a number of things on your behalf. Researching lenders and rates, selecting the best lending options for you, completing your application accurately, and then progressing the application through with the lender till you get your mortgage offer.
Why use a mortgage broker?
- You can get a better deal.
- A mortgage broker is duty-bound to help you in your mortgage-buying decision.
- If you are new to this then a broker can teach you the process.
- It is a mortgage broker job to ensure your application contains no errors.
- Communicate more effectively with a lender.
- Save you time.
- Manage your expectations.
Will it not cost me more?
There are a number of ways that a mortgage broker may charge you for their services.
- A fixed fee – to be agreed with you, upfront and in writing.
- Hourly rate - although this is becoming increasingly rare.
- A percentage charge on the amount of mortgage borrowing - for example, if you agree to a 0.5% fee for a mortgage loan of £250,000, you'll pay the broker £1,250. Some brokers may charge up to 1%.
- Commission from the lender - this is generally based on a percentage of your loan amount and typically between 0.35% and 0.45%.
- A combination - in some cases, brokers will take a commission from the lender and a fee from you.
- Zero fees - some firms will not charge additional fees and will just be paid the procuration fee from the lender.
Speak to us today to discuss your financing options.
