The advantages of using a mortgage broker

A mortgage broker can be very advantageous when you are looking for the best mortgage. It is not essential to use a mortgage broker however, the advantages of using a mortgage broker really do outweigh not using one.

A mortgage broker is a licensed and regulated financial professional who works as an intermediary between individuals and mortgage lenders. The advice and knowledge a mortgage broker provides are invaluable during the mortgage application process. This is mainly due to them being able to access better or exclusive deals from the lenders. They are also able to assist you throughout the mortgage application process building a good case for you.

At Resolve Financial Solutions, we work with our clients to assess their financial situations and find a lender and mortgage product that is right for them.

The advantage of using a mortgage broker is when you, the homebuyer, need assistance in choosing a mortgage lender and finding the best mortgage deal on the market. This is currently very important, as COVID-19 has affected the housing market and resulted in many lenders changing their mortgage products. Some are even requesting a minimum 15% deposit. This puts many potential homebuyers, especially first-time buyers, in a position where the amount of mortgage products available to them is far smaller. Furthermore, many of the UK’s workforce is on furlough, so finding a mortgage to suit your circumstances can be very difficult in these unprecedented times.

In some circumstances, you may affect your situation by not using a mortgage broker. For instance, if you apply for a mortgage that is not suited to your circumstances, your application may be rejected by the underwriter. This not only causes delays but could have a negative effect on your credit report.

Using a mortgage broker can enable you to get the best deal if you are trying to buy a house with bad credit, if you are self-employed or working on a zero-hour contract and if you are considering remortgaging your home. They can give you access to a wider range of alternative mortgage options.

Being prepared for your meeting with a mortgage broker always helps speed up the process. It will also enable the broker to tailor their search for both the best lender and mortgage product for you. We advise our clients to have evidence of their incomings and outgoings for our first meeting, this includes payslips, P60, self-assessment documents, bank statements, proof of address and identity and any details of debts you have.

The main advantages of using a mortgage broker are:

  • Market knowledge of available mortgage products
  • Saves you time and added stress
  • A broker could save you money by finding you the best mortgage deal for your circumstances
  • The advice is tailored to your circumstances

What does a mortgage broker cost?

There are different ways a mortgage broker can make their money and charge their fees. In some cases, you will not be charged as they will receive a commission from the lender. In other cases, you will need to pay a fee for their services. Details of our fees and how we work can be found here. We advise that you are clear on any fees and how they are collected prior to proceeding with a mortgage broker.

If you are interested in discussing how we can help you find the best mortgage deal then please get in touch.

*Please note: Your home maybe repossessed if you do not keep up repayment on your mortgage.

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