Getting a mortgage is probably the biggest financial commitment you’re ever likely to make so it’s understandable that you want to get it right. The best way to do this is to seek the advice of a professional who will be able to guide you through the products on offer and find the correct one for your circumstances.
If you opt to take out a mortgage without the advice of a broker – say, for instance, you choose to go direct to a lender – you won’t be able to compare all of the products available to you and while you might get the best product on offer from that lender it won’t necessarily be the best on offer in the market as a whole.
Comparison sites, meanwhile, will present you with a list of options but the site can’t come up with a bespoke solution based on your situation.
Those people who do use mortgage brokers tend to find them themselves – we’ve all got pretty good online presences as well as high street branches like our office in Piccadilly. However, some will be encouraged, by the estate agent selling the property they want to buy, to use an in house broker – in other words a broker who works within the estate agent branch.
There are pros and cons to doing this. It’s certainly efficient if your broker is based in the same place as the agent selling your dream home.
However there are some downsides too. The estate agent may not be whole of market which means they can only source mortgages from a select panel of lenders. Furthermore, giving all of your financial information to a broker based within an estate agent can cause something of a conflict of interest. The estate agent works for the seller whereas the broker should work for you, the buyer. You could lose your bargaining power if the agent is fully aware of your financial position.
Getting professional advice when taking out a mortgage is always a better option than going it alone but make sure you choose a broker who can offer the very best service and the very best products.
A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage.