If you are planning to buy a new house, you are sure to look for a mortgage. However, you might also wonder if you should go to a mortgage broker or consult a lender directly. Times have changed; a broker no longer brings you a list of available mortgages; they do more than that for a hefty fee. It is wise to see what they can offer.
The legislative revolution has made it all the easier and safer for you to engage with brokers. They take responsibility for your dream home and provide a comprehensive financial assessment. You will be sensible not to skip the broker, especially if you are a first-time buyer. Many people, to save a few pence, tend to forget to approach a broker, which in the future leaves them with a bad mortgage. Mortgage brokers also help you speed up your application process. Have a look at the several pros and cons to finally conclude.
PROS
- A broker takes care of your financial conditions, and the advice they will give will be tailored to your needs. Hence, you won’t have to shell out much money.
- They have a wide range of mortgages ( via exclusive deals from lenders). They have access to the whole mortgage market like no one else. This will help you avail yourself of such discounts as well.
- There are a few deals that are only made for brokers, so you can get access to that as well.
- Going through the mortgage process alone is usually very tiresome and can take much of your time. So, if you want to save a little time and put that stress away, then a broker can come to your rescue by searching for you.
- Most of the time, it is seen that brokers have proper expertise in the field of mortgage; this expertise can save you from later grief as they have in-depth knowledge of various habits and anomalies of different lenders. For example, if you are time-strapped, they may be able to tell you which lenders work quickest, or if affordability is your main concern, brokers may know which lenders consider certain expenditures during your affordability assessment (including school fees, childcare costs, commuting costs, pension contributions).
CONS
- Mortgage brokering is one type of business; they will charge you a fee for their services. Now, this fee may include an hourly rate, a flat fee, or a commission; this can also be a combination of all three. Now, a moment of caution, no matter how they charge you. They are entitled to outline fees in the disclosure document.
- If you plan not to hire a broker, then you may miss out on the direct deals; these deals could have saved you a lot of money. A good broker always tries to include it in the market assessment; without a broker, you must submit your application directly.
When deciding on whether or not to use a mortgage broker, a balanced approach may be the best solution.
