What Does A Mortgage Broker Do?

What does a mortgage broker do?

A mortgage broker is someone that would help you connect with a mortgage lender – that is, a bank or a building society. I prefer to say mortgage adviser as opposed to a broker.

A good advisor’s job is not just to secure you a mortgage – you’re looking for your broker to really listen to your needs and requirements, to provide you with advice on the best mortgage for your personal needs and circumstances.

Mortgage advisers will always be able to secure you a competitive deal based on your circumstances as well. Most of all, we’re going to be able to save you time, effort and potentially a lot of money over the term of your mortgage.

What’s the difference between going to a mortgage mortgage advisor like yourself versus your local high street lender?

It might seem like the easy option to just pop down to your local bank or building society and see if you can get a mortgage. But that can sometimes be a mistake. By going direct to that particular bank, they can only offer you the products and mortgage interest rates they have available, and mortgage interest rates can vary significantly between lenders.

So by going direct, you may not be getting the best deal to suit you. It also means you could end up with a rate that’s not competitive. It’s also worth noting that a lot of mortgage lenders have varying criteria which restricts who they lend money to. Even going direct to your own bank, you may not qualify for a mortgage with them.

Ultimately, that’s where a mortgage broker comes in.
What services does a mortgage broker offer?

Ultimately, that depends on the broker. There are two main types of mortgage broker. A ‘tied’ broker only has access to a limited number of mortgage lenders, while others are classed as ‘whole-of-market’ where they can access a wide range of mortgage providers.

So when you’re looking for a mortgage adviser, generally you want to be looking for someone who is whole-of-market, as they should be able to get you the best deal based on your circumstances.

Here at My Mortgage Specialist, we are whole-of-market. In terms of services, we hold your hand from start to finish. I’ll get you an initial Agreement in Principle and secure you a mortgage. We work with First Time Buyers and home movers to give them that Agreement certificate so they can go and view properties and put offers in.

We’re there for you right the way through to the day you get your keys. We help with chasing solicitors, arrange your home insurance, and we also talk to you about mortgage protection insurance like life cover and income protection. We do everything for our clients in house, to make it as simple and streamlined as possible – that’s all part of the service.

Can you advise on mortgage protection as well?

Yes – we do this for all clients. It’s free, as part of your journey with us. Mortgage protection is obviously quite a complex field, and an advisor will make sure you’ve got the correct policies and cover in place to suit your needs.

When should I come and see you? At what stage in the process?

It depends on your circumstances – whether you’re a First Time Buyer, a home mover or whether you’re remortgaging. If you’re planning to buy a property, ultimately, you need to know what your affordability is and what mortgages are available to you. So that contact with a mortgage advisor should be done right at the very start of the process.

There’s no point looking at properties and potentially falling in love with your dream home, only to find that later down the line you’re unable to get the mortgage needed to purchase the property – that can end in heartbreak.

So speak to a mortgage advisor very early on in the journey. The adviser will then be able to talk you through the process and discuss your personal circumstances. We’ll make a mortgage recommendation and secure an Agreement in Principle for you. Then, you know what your affordability is, how much you can borrow, that you’ve been accepted by that particular lender and passed the credit search.

Most estate agents require an Agreement in Principle even before they let you view a property – so having that certificate is key.

If you’re a home mover or a First Time Buyer, speak to an advisor now. If you are remortgaging, it’s about starting early enough. You might be in a fixed, variable rate or discounted rate deal that has a certain end date. Make sure that you speak to your advisor early enough to get a mortgage in place and for the solicitors to change you over, if you are moving lenders.

I generally advise my clients to start the process about four months ahead. That’s usually enough time to make sure that the deal is secured and the solicitors can switch things over. If that’s not done before the end of your current fixed deal, you end up on your current lender’s variable rate. In most circumstances, that can end up with a big jump in your monthly payment.

Let’s talk about My Mortgage Specialist – when was this founded and how long have you been in the industry?

The brains behind the operation was my father-in-law, who’s been in the industry for over 35 years. He started it all off and he’s been joined along the way by a number of advisors, myself included.

I’ve been in the industry for over six years now, and obviously with my father-in-law and the other advisors here, we’ve got a wealth of experience within the firm.

Does it cost for an initial consultation with you?

No, not at all. The important thing is that there’s no such thing as a silly question, particularly for First Time Buyers. This is the first time they will have seen anything like this, so it can be quite a daunting journey. Again, that’s why using a good advisor who’ll be there for you throughout is strongly recommended.

We talk you through everything and make sure you understand everything that’s going on. Sometimes people get worried about asking questions. But the more, the better. I want my clients to understand everything – ultimately it’s their mortgage once it’s complete so they need to know all about it.

What else do we need to know about working with a mortgage broker?

I think the key points to take away are obviously to speak to an adviser early on in the journey, to know what is available to you from a lender. You’ll know how much you can borrow, so you can start your property search accordingly. That’s important if you’re looking to move or you’re a First Time Buyer.

Also, make sure you use a broker to secure you the most suitable deal based on your personal circumstances. In today’s economy, that’s absolutely key.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.