Whether it’s your first step on the property ladder or you’re looking to remortgage your current home, you might need a mortgage broker. But where should you start your search? How much should you expect to pay? And how d’you know who’s the right fit? We answer all your questions, right here.
What is a mortgage broker?
A mortgage broker arranges a mortgage between you (the borrower) and a lender. As part of a broker’s role, they’ll assess your financial situation and compare offersfrom multiple lenders to find a mortgage product that works with your criteria. Not just for now, but into the future.
Why use a mortgage broker?
Navigating the world of mortgages can feel confusing, especially if you’re a first-time buyer. With a mortgage broker by your side, you have expert guidance leading the way to help you secure the best possible product.
Not simply by having access to a wider range of lenders, but by simplifying complex processes – and avoiding financial pitfalls. All with the added benefit of industry insights to protect your interests along the way.
Another perk often overlooked with mortgage brokers is they understand lender preferences. Where some lenders might be rigid with borrower requirements, others might be more lenient and willing to make an offer.
Without a mortgage broker in your corner, you might never know the range of options available to you. Or worse still, you might end up with a mortgage product that doesn’t truly fit your financial situation.
Should you use a mortgage broker?
Using a mortgage broker can be a smart move to save you time, money and stress. Even if you’re better off staying with your current lender, it’s still advisable to get a second opinion from someone who knows the climate.
A broker is also particularly helpful to borrowers who might be struggling to land a mortgage due to a small deposit, self-employed status, or being employed for a short period of time. With access to a wider range of lenders, a broker is better positioned to find the right product.
If you currently have a mortgage and want to take on the remortgage process alone, there are multiple factors to consider beyond an interest rate. So, before you agree to anything, it’s wise to ask a broker to check the small print for you.
When to use a mortgage broker
Buying your first property can be exciting. And if you’re not careful, the heart can rule your head. So before you start flicking through pictures and floor plans, it’s wise to speak with a mortgage broker.
By having expert guidance from the get-go, you’ll have a better idea of what you can afford. It also means you’ll save time and effort shortlisting and viewing properties beyond your financial capabilities.
But using a mortgage broker isn’t just sensible for first-time buyers. It’s also a sensible move when it comes to remortgaging. As part of a broker’s role, they’ll research mortgage products up to six months ahead of your renewal. So if there’s ever a better rate available, they’ll find it for you.
How to find the right mortgage broker
Where some might simply trust their gut, smarter cookies do their research before they instruct a mortgage broker. A strong starting point is to check online reviews and credentials. If other clients have been satisfied with the broker’s service, it’s likely you’ll be too.
If you’re someone who prefers to get things sorted face to face, you might also prefer a broker local to your area. We love meeting clients at Compass – and one of the reasons we have a high street presence here in Steyning. If you’re ever in the area, come and say hello.
How much does a mortgage broker cost?
How much a mortgage broker costs will vary depending on fee structures. Where some brokers charge a percentage of what you borrow, others prefer to operate within a fixed fee.
At Compass, we fall into the fixed fee camp, charging £495, payable on exchange when buying a new home or when the completion date is set for a re-mortgage. That way, you don’t suffer any expensive surprises along the way – no matter how much you borrow or how long it takes to secure the right mortgage.
In some cases, you might find a broker doesn’t charge a fee. Be cautious about these types of offers (and always remember, you get what you pay for).
Another perk often overlooked with mortgage brokers is they understand lender preferences.
If it isn’t all-encompassing, it simply isn’t Compass
Securing a mortgage is only part of the story. What’s just as important is the experience you have along the way.
Related advice
The ultimate mortgage jargon-buster (A–Z glossary)
The world of mortgages is full of technical language. So, to clear the confusion, here’s an A–Z glossary of the most common terms, with a simple explanation of what they all mean.
How to get a mortgage (a step-by-step guide)
Getting a mortgage is probably the biggest financial commitment you’ll ever make. So it’s important you know what to expect, how much it might cost, and what kind of mortgage product is right for you.
How to find the right mortgage broker
Whether it’s your first step on the property ladder or you’re looking to remortgage your current home, you might need a mortgage broker. But where should you start your search? How much should you expect to pay? And how d’you know who’s the right fit? We answer all your questions, right here.