When you're looking to buy a new home and beginning to think about the mortgage application process, some people might think;
“I don't need a mortgage broker. My bank will give me the best rate, won't they?”
This is one of a number of 'Mortgage Broker Myths and Misconceptions' we will be looking at in this week's blog so we can shed some light on what's true and what's not and hopefully save you some money and hassle when it comes to making your decision.
Using a mortgage broker will cost me more money
Some financial advice and professionals will tell you to avoid mortgage brokers due to the additional fees they charge. On the surface, this might seem an obvious thing. But mortgage brokers will often save you money on your monthly mortgage payments way beyond what they charge for the advice.
Additionally, the service we offer includes things you would not otherwise benefit from if you were to apply directly through your bank or present lender that can save you a substantial amount of time and money.
Mortgage brokers add little value to the process
It is often thought that mortgage brokers are not able to provide much added value to the application process, though this is far from the case. As opposed to an online quotation or an off the shelf product, a broker’s main objective will be to find you the most affordable product that works well with your unique circumstances, needs and goals.
The mortgage market consists of multiple lenders offering multiple products. At Steel and Co. we will spend time scouring and researching the mortgage market in order to provide you with a recommendation best suited to your needs. Furthermore, our mortgage service continues right through from initial enquiry to completion and beyond.
Your mortgage broker will be able to assist with any queries, questions, paperwork issues and more in order to make the application process as stress free as possible. Plus, when it comes time to review and renew your mortgage product your broker will make contact with you well in advance to ensure you again get the best deal possible.
Mortgage brokers work for banks and lenders
Steel and Co. are a completely independent brokerage service. Though we have built strong relationships with a large number of banks and lenders, we remain completely detached from any exclusivity or bias when researching a product for a client. We always aim to remain focussed on the needs of our clients and negotiate solely on their behalf to ensure their needs are met.
A mortgage broker cannot help me, as I have bad credit
Having a poor credit history can often be seen as having a negative impact on your ability to obtain a mortgage. However, though the range of lenders and products available to you may be reduced, you should not give up hope.
If you have been rejected by a lender due to past bad credit issues, a mortgage broker may be able to help. Due to the wide network of lenders we work with, we will search the mortgage market to see if there is a product out there for you and provide you with the advice to get your credit back in check.
I don’t need a mortgage broker. My bank have promised me the best rate possible
As a loyal customer your bank should reward you with the best mortgage rate possible, right?
As much as we would like to believe this to be the case, it is invariably not. Sadly, many banks will not shop around for you and simply offer you the nearest ‘off the shelf’ product they have that fits their limited overview of your circumstances.
By using a broker you will not only have access to the rest of the mortgage market, but using their expertise and knowledge they can sometimes access better rates even from your current lender or bank.
We also believe that your relationship with Steel and Co. is one for life. Whether you are applying for your first mortgage or looking for a remortgage if you choose to work directly with a lender, keep in mind that you should plan to spend ample time shopping around to find the best deal on your loan and you will only have access to a very limited amount of products. In addition you should ensure that you are well versed in translating mortgage terms and concepts.
However, should you wish to have a qualified and experienced broker undertake the search and negotiation work for you to find you the best product for your personal circumstances, then please do give us a call on 01502 446000.