When you’re looking to buy properties, the likelihood of having a mortgage needed to pay for it range between highly likely and almost inevitable. However, going to an experienced mortgage agent instead of directly at your financial institution, will bring dividends.
We’ve reviewed the advantages of getting advice on mortgages, regardless of whether you’re a first-time buyer, homeowner or the remortgager.
1. Access to a wider range of deals
Directly to the bank or building society will mean that you’ll only have only access to mortgage offers it provides. A good mortgage broker can search every market corner to find most suitable deals to your specific needs.
It’s crucial to know the distinction between a tied broker, which is restricted to a lender’s panel as well as a “whole of market’ brokers that can offer advice on products offered by a vast selection of lenders (although it could exclude some that only direct applications from clients).
They have access more than 12,000 mortgage options that are offered by 90 lending institutions, making it the largest selection that is available.
2. Experts in determining the best mortgage for your requirements
The maze of mortgages is a daunting task with so many types of deals available. They also tend to be subject to frequent changes, especially as interest rates change. You can check out what’s available in the table below.
A broker can assist you choose the best mortgage that is based on the amount of your deposit as well as your earnings (or joint income if you’re buying jointly with another person) as well as your personal factors.
They will provide information on the various types of mortgages like a fix or tracker and will advise you on the duration and flexibility of the deal based on your specific needs and level of life.
If you’re the first purchaser, an agent could assist you with schemes like Shared Ownership or as well as the Help to Buy Equity loan scheme or even the possibility of putting your money to buy with your other friends.
3. Do the work on your behalf
A mortgage broker will manage the entire mortgage process , starting with the initial mortgage search to obtaining a’mortgage-in principle’ in place (which specifies the amount you might be able borrow based the information you supply) up into the process of applying, offering and finalization (when you receive the money).
A broker is knowledgeable of the extensive paperwork required for an application for a mortgage and will describe how important details such as expenses for childcare and an annual reward should be included.
In many cases, you can keep track of the progression of your application by using your profile on the internet that you created in the initial stages in the application procedure. This is also where you can upload all pertinent files in digital formats.
4. Improve your odds of having a more successful application
In the course of submitting your application, the lender will conduct an examination of your credit to find out how well you’ve handled previous loans. The better your credit score is, the more likely you will be approved to get a mortgage.
A small thing like the fact that you haven’t paid for the phone contract can negatively impact your credit score and make it more difficult to be approved. However, addressing a previous credit blip is it takes for brokers. They’ll evaluate your financial situation and take the necessary steps increase your chances of approval.
A broker is also aware of how the lender’s affordability tests work, which provides you with the best chance to be accepted.
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5. Make use of relationships with lenders
Because it’s what they do all day long Brokers have established relations with lenders. For instance, they will regularly discuss the latest criteria and changes to policies. This will give you an edge in obtaining the crucial green signal on your loan for home.
6. Aid if your income not easy to calculate
If you’re self-employed or your income is not consistent or comes from multiple sources, such as the experience of a broker can be extremely useful.
They have previous experience handling these kinds of applications – which may possibly be more difficult and will be able to target your application according to their knowledge of the profile and lending requirements of a specific institution or bank.
7. Make a note to remortgage
Even after your mortgage has been approved A broker will notify you that it’s time to refinance – which could mean changing to a different deal when your current one expires. This reduces the chance of being a victim of your lender’s possibly costly regular variable rate.
If you’re looking to borrow more money against your mortgage (such as to construct an extension to your home , for example) an agent will be able to inform you the amount you could be able to borrow and also the best method to get the money.
8. It’s not required to cost just a cent
Some brokers charge an “advice fee or processing fee to set up your mortgage – which may be as low as PS500 but many offer no cost to the consumer.
Instead, they collect payments from the lender once you have completed your mortgage or refinancing. This is done through what is called a “procurement fee or ‘proc or ‘proc fee’ as it is commonly referred to.
However, an adviser will not be paid a percentage of the amount of your loan or the lender you choose. Their sole motivation is to negotiate with you the best deal.
If you decide to work with a broker, and decide to change your mind later there are no obligations to be a part of. You are able to opt to pull out of the process , or even contact the lender directly.