5 Reasons to Use a Mortgage Broker

The mortgage market can look complex at any time. Whether you are employed, self-employed, have a poor credit rating or you are looking to release cash through remortgaging, it’s important that you choose the right product to suit your circumstances. 

A ban on sales during the pandemic means that demand for property and mortgages has skyrocketed now that restrictions have been lifted. It’s a booming market, interest rates are at a record low, but lenders have responded by taking some products, such as low-deposit mortgages, off the market temporarily. As a result, it’s more important than ever that you use the expertise of an experienced mortgage broker to track down the right mortgage. 

In this article, we’ll explore five reasons why a mortgage broker adds value to the home buying process and why you can’t afford to be without one.

1. Get Expert Advice Before You’re Even Ready to Apply

Many people engage the services of a mortgage broker when they are ready to start the mortgage application process. What they don’t know is that a broker can offer advice and expertise way before this point. By approaching a mortgage broker a few months before you are ready to apply, you can find out more about affordability, how much deposit you need, your credit status and how much a lender is likely to offer you. A mortgage broker can also tell you which lender is most likely to give you a mortgage agreement in principle. 

Engaging a mortgage broker early on can save you time looking at properties that are outside of your lending scope and give you the best chance of having a mortgage agreed once you are ready. 

2. Track Down the Best Mortgage

With hundreds of lenders offering an array of mortgage products, choosing the right mortgage can be daunting. Also, every lender has its own lending criteria and this can differ significantly between lenders. If you fail to match this criteria, lenders may reject your application and leave a mark on your credit report. This can be a red flag to other lenders that you approach. 

An experienced broker, on the other hand, can search the market on your behalf. Armed with your details, they can find the lenders that are most suitable to your situation and that are most likely to approve your application. They can also help you if you don’t meet the criteria of high street lenders, for example, if you are self-employed with no fixed income. 

3. A Broker Can Save You Money

If you can secure a low interest rate, you could save a lot of money over the full term of your mortgage. A mortgage broker will have this as one of their top priorities when searching for a mortgage product for you. 

Even a small difference in the interest rate can make such a difference to your finances over the years. Take a look at this example: If you took out a mortgage of £200,000 over a 25 year term with an interest rate of 2.5%, your monthly payment would be £897. Over the full term of the mortgage, you would pay a total of £69,204 in interest. But if the interest rate was to increase by just 1%, that interest would shoot up to £100,477. That’s a huge difference. 

4. Save Time and Hassle

A mortgage application can take weeks to complete from start to finish. Missing paperwork, mistakes in the application or inaccurate financial information can all hold the process up and could result in your application being rejected. Don’t take the risk. A mortgage broker will not only understand what is required by the lender but will also either help you with the application or complete it on your behalf. This will reduce the chances of the lender needing more information and help to speed up the time it takes from application to being handed the keys to your new home. 

“As our advisors have a wealth of experience between us, we are very familiar with the necessary information and documents that individual lenders are likely to ask for, so this means that we can share this with you right from the very beginning of our journey with you. We will request the required information from you during our fact-find and from this, and once we have a better understanding of your individual needs and circumstances, we will have a better understanding of what documents will be asked for. We will ask for these documents from you upfront so that when it comes to submitting your mortgage application for you, we will have it all to hand so you can sit back and let us do all the hard work. Once the application has been submitted, we will even do all the liaising with all the third parties such as solicitors, estate agents and your lender so you don’t have to!” – Lisa Boulton, Mortgage Advisor

5. Get Specialist Assistance and Advice

Another service that many mortgage brokers offer is advice for situations where a regular mortgage may not be suitable, for example, if you are self-employed or have bad credit. In these situations, you need a broker that has access to products from the whole of the mortgage market and who can help you with the finer details such as the financial paperwork lenders will need.

Our Brokers Are Ready to Get Started

At Alextra Mortgages, we’re here to help to take the complexity out of the mortgage process and help you find the best deal. Whether you are ready to move home now or want to find out how much you could afford to borrow, our brokers are ready to offer their expertise. Speak to us today to find out more about our services and how we can help you to get the keys to your dream home quickly and with the least amount of hassle. 

The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
Alextra Wealth Management Limited which is an Appointed Representative of TenetConnect Limited, which is authorised and regulated by the Financial Conduct Authority. 
TenetConnect Limited is entered on the Financial Services Register (www.fca.org.uk/register) under reference 149826.