What is a Mortgage Broker?

What is a mortgage broker?

What is a mortgage broker ? If you’re thinking about getting a mortgage, you might have heard of the term “Mortgage Broker”. But what actually is a mortgage broker? And how does one help you? Keep reading to find out what a mortgage broker is and the advantages of using one.

Never just ask your bank for the best deal they have. They will usually only show you a slim selection of their own mortgage options. A mortgage broker will look into the whole market and find the best deal for your individual circumstances. 

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What is a mortgage broker and what do they do?

A mortgage broker is an intermediary between you (the buyer) and the lender. They have access to all of the mortgage deals available to you. The broker will match you with lenders that have the most suitable deals for your individual situation and criteria. Meaning you get the most value for your money.

Historically, banks and other lending institutions have sold mortgages directly to buyers. 

However, the mortgage market has become more competitive over the years. With lots of lenders offering lots of different options, it can be hard to find the right deal. 

With the help of an experienced mortgage broker, you could save you hundreds of pounds. Meaning you don’t end up kicking yourself later down the line!

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Why use a mortgage broker?

As you can see below, there are many advantages to using a mortgage broker.

Market knowledge

If you go directly to a bank, they will show you a range of mortgage deals they can offer you. A mortgage broker has access and knowledge about most (if not all) the deals available to you. 

They also have financial expertise, which is invaluable in the confusing mortgage market. Things change rapidly as interest rates fluctuate and mortgage deals come and go. Talking to someone with expertise can help you see things clearly, and even buy at the right time. 

With lots of experience and contacts in the financial industry, brokers have usually dealt with a wide range of lenders and they know the criteria. Meaning, they can quickly find a suitable deal and lender that works for your situation. 

Mortgage brokers can also give advice on help to buy mortgages and other government schemes. 

In short, a mortgage broker has access to knowledge that might not be obvious to the average person, and they will use this to find the most suitable mortgage deal for your needs and situation. 

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They can help with other financial considerations too.

As well as advising you about your mortgage, a broker can advise on related financial arrangements you have i.e. life insurance, payment protection and buildings and contents cover. 

They can also recommend insurance based around your mortgage that will protect you in unfortunate situations such as redundancy, critical illness and death. 

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Convenience

Mortgage brokers are convenient. They can save you a lot of time and hassle. 

Do you have much knowledge of the financial/mortgage markets? You might be an expert, but most people aren’t.

A broker is likely to be a lot more experienced and up to date with the current trends than you. 

Moreover, we don’t all have enough time to sift through the countless deals, fill out paperwork and speak to lenders. 

For these reasons, a broker can make the whole process much quicker and easier. 

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Security

You’re protected if any advice you received wasn’t correct. 

When you receive mortgage advice, the broker has a duty of care to you. You can complain if the advice they gave you was incorrect, and you could be entitled to compensation. 

But make sure to always check the firm or individual you are working with is authorised by the FCA (Financial Conduct Authority) Check the Register

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What Additional Options are available through a mortgage broker

Mortgage brokers have access to all the deals available to you and more. 

Some lenders only deal with brokers and others only do certain deals through brokers, so going through a broker could open you up to far more options and help get you a better deal than you could find on your own. 

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Risks of not using a broker

You could get the wrong deal.

A lot of people find their own mortgages, but if you choose the wrong one for your situation, your mortgage repayments might be a lot higher than they could’ve been. This can prove very expensive in the long run. 

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You could get rejected.

If you don’t understand the restrictions clearly, or what the mortgage you are applying for was designed for, you could be rejected by your chosen lender. 

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How to find a mortgage broker?

You’re in the right place. We are Blue Crocodile, and we are seasoned financial professionals who specialise in mortgages. 

We are an appointed representative of HL Partnership Limited, which is authorised and regulated by The financial conduct authority. 

Talk to us today, and we’ll find the most suitable deal for your situation.

Get In Touch

0113 320 3205 | info@bluecrocodile.co.uk

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