Whether you’re a first time buyer or a home mover, mortgage advice can be incredibly helpful. Your bank may seem like the most logical place to get the help you need, but this move could cost you more time and money than you think. Here are just a few reasons why you shouldn’t go straight to your bank for mortgage advice.
They won’t compare deals from the whole market
If you ask your bank for a mortgage, they’ll only show you the products they offer themselves. As a result, you may miss out on an even better mortgage deal elsewhere.
With so many mortgages on the market, two deals could have a difference of thousands of pounds. For example, if you were to borrow £100,000 from your bank at an interest rate of 3.92 over a period of 25 years, this would cost you £157,029 in total. If, however, you found a mortgage deal elsewhere which allowed you to borrow the same amount at an interest rate of 1.57, it would cost you just £120,970.
You’re not strengthening your chances of getting approved
Not only could applying for a mortgage directly through your bank see you missing out on an even better deal elsewhere, it could also see you struggling to secure a mortgage at all.
All lenders have a set of criteria that must be met before they’ll approve a mortgage application. They’ll look at each applicant’s income, savings, credit rating, and debt history, before deciding whether or not to lend them the money or not.
Some lenders are more selective than others and will reject applicants at the first sign of a financial hurdle. It’s important to note that a loan rejection leaves a small mark on your credit file, potentially making it even more difficult for you to access the loan you need from other lenders.
You may have lots of paperwork to complete
When you apply for a mortgage through your bank, you may have a considerable amount of paperwork you’ll need to complete. You may also have to attend appointments with your bank, which could be difficult if you have work commitments.
In contrast, a mortgage broker will take much of the work off your hands. They’ll fill in most of the paperwork for you, getting in touch with you only when it’s essential.
A good mortgage broker can also help you speed through the process - particularly helpful if you’re in a hurry because you need a mortgage quickly for a house you’ve got your eye on.
To find out how TaylorMade can help you with everything from mortgage advice to your application, please get in touch with our team.
