Why Use a Broker?

I genuinely believe that using a broker is advantageous, especially in today's tough economic climate, for the following reasons:

1 Lenders can only offer their own products. So any advice is limited to information on their own products and ask set questions to come up with suitable products. This is fine for financially sophisticated borrowers who know what they want. But others might need full advice, specific to their needs from a qualified and experienced broker. Also, if your sale is ‘advised' you have far greater rights should you need to complain.

2 Brokers can scour the market for the deal that suits you. Some direct deals may be more competitive but brokers will look across a wider range of lenders. Half of borrowers that go direct go no further than their own bank and another 40% visit less than three lenders, according to the mortgage watchdog. The chance that they will happen upon the lender with the best deal for them is slim in a market of thousands of products. A broker can search over 100 lenders' products.

3 Brokers can get the deal placed. A lender may not have a wide enough product range to be able to place a client, particularly in the current market. A mortgage broker can scour the market to find a lender that will be able to place the deal. A census of brokers found that over 73% were able to place over 95% of their clients with a lender first time.

4 A client with unusual needs or circumstances can often only be provided for by a broker. Many lenders that operate in specialist markets, such as the sub-prime sector, do not operate direct to consumers. 83% of borrowers who had suffered financial difficulties were assisted by mortgage brokers, according to the AMI.

5 Brokers provide a service in demand. In the current market the number of borrowers turning to advisers rather than lenders is actually increasing as people seek advice they can trust. 

6 Advice when you need it. Mortgage brokers understand that people cannot always take a day off work to discuss their homeloan. Your bank branch may close at 3.30pm but your broker will work until 9pm at night, visiting you in your home, workplace or their office at your convenience.

7 Your mortgage may progress more smoothly with a broker to assist with any issues. They have tried and tested processes to avoid going back and forth, and can speak to the people who make the lending decisions. 

8 A broker will look at your wider protection needs, not just your mortgage. When it comes to related insurances the broker can check the entire market. A lender will offer you their product, or those of a firm they are tied to. On each product a broker can look at what best meets your needs and saves you money. 

9 Most clients have a stronger bond of trust with their financial adviser than with their product provider. Brokers can look after your financial circumstances over the long-term. For example, your broker is likely to contact you to remind you to remortgage just before your new deal finishes, which will ensure you aren't automatically moved onto the lender's expensive SVR. Your adviser is likely to have a more in-depth understanding of your financial circumstances and attitudes to risk than a provider. After all, a broker knows that the best way to retain your business is to serve your interests.

10 When a better deal comes along from a competitor, if appropriate a broker will contact you. Your product provider will not. 

 

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.