If you are planning to buy a new house, you are sure to look for a mortgage. However, you might also wonder whether to go to a mortgage broker or consult a lender directly? Times have changed. A broker now 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 now made it all the easier and safer for you to engage with brokers. They take responsibility for your dream home and provide you with a comprehensive financial assessment. You will be sensible not to skip the broker, especially if you are a first-time buyer. To save a few pence, many people tend to skip approaching 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 conclude finally.
PROS
- A broker takes care of your financial conditions, the advice they will give will be tailored to your needs. Hence you won’t have to shell out on a lot of 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 such deals as well.
- A few deals are only made for brokers so that you can get access to that as well.
- Going through the mortgage process alone is usually very tiresome and can take a lot 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 mortgage field; 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 at the end of the day is one type of business. They will charge you a fee for their services. 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 which way they charge you. They are entitled to outline fees in the disclosure document.
- If you plan not to hire a broker, 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 will have to submit your application directly.
When deciding whether to use a mortgage broker, a balanced approach may be the best solution.
