Whether you’re applying for a mortgage or remortgaging an existing property, you may be wondering how to obtain a mortgage. Should you go straight to a lender and submit an application or use a mortgage broker?
Here are a few things to think about:
Mortgage brokers can help you overcome affordability issues
Many lenders have strict affordability rules and refuse to lend to those who fail to meet their criteria. Whether you’re looking to purchase a home on a low income, with a small deposit or a damaged credit rating, a mortgage broker can help you overcome the obstacles and obtain a mortgage. They’ll know which lenders are notoriously difficult and which are more flexible and likely to approve your application.
Mortgage brokers will compare hundreds of deals to find the most affordable one for you
It’s not unusual for both first time buyers and those looking to remortgage an existing property to go to their bank and ask for a deal. However, while this may feel like a familiar way to finance your home, it could see you making unnecessarily high repayments each month and paying thousands of pounds more in interest over the course of your mortgage term.
Some mortgage brokers will charge you a fee
The best mortgage brokers often charge a fee for their services. If you’d rather avoid this cost, you may prefer to choose a free broker or approach lenders directly.
However, the fees associated with paid brokers can usually be considered an investment. By comparing hundreds of deals across the market, an experienced broker will help you identify the most affordable one for you - potentially saving you thousands of pounds over the course of your mortgage. Your fee will be a drop in the water compared to the amount you consistently save.
