How to Choose the Right Mortgage Broker
If you’re a landlord with a few properties or even someone who has bought several residential homes over the years, you don’t need a broker, right? Wrong!
When it comes to mortgages, things can get pretty complex, so even if you’re familiar with the process, it really does pay to have someone on your side, so here’s how to find the right person.
Do you even need a broker?
I’m sure this wouldn’t even cross a first-time buyer’s mind, but the short answer is yes. However, some of you have more experience with mortgages who are wondering – well, why? After all, if you’ve got that experience and you’re familiar with interest rates and different lenders, surely you could sort yourself out and save on the advisor fee… right?
Well… yes you could!. But let’s look at all the reasons that’s a terrible idea:
- Time and stress. It takes an advisor, on average, about 20 hours to do all the necessary fact-finding, and paperwork and provide advice, and that’s WITH all their knowledge, experience and systems, as well as support from their wider team. So imagine how long it could take you? Do you really want to do that alongside your daily life and work?
- Knowledge. Mortgage brokers know their stuff. They can give you advice in minutes that it would take you days to work out by yourself. They can help you avoid hurdles in the process that you might not otherwise be aware of – and could stumble over, losing your dream property in the process.
- Access. Brokers have access to products that you might not even know about. They are always going to have much wider access than you – and are therefore more likely to find you a great deal that you’d never find alone.
At a time of rising interest rates, this really is the time to loop in expert help and save yourself money in the long run!
So now it’s time to look at how to choose the right person for the job.
Choosing the right broker
This person is going to be on your team when it comes to getting your property. Whether this is your first taste of home ownership, you’re upsizing or downsizing to suit your family or investing in a new buy-to-let, you want someone you can rely on.
Here are some of the things you need to check or look out for to ensure you’ve got the right broker for you:
- Check qualifications and registration. It sounds obvious, but it’s true! Make sure they have the correct qualifications and that they are registered by the Financial Conduct Authority (FCA) – by law in the UK, they HAVE to be. You can check the FCA register for their name to be sure. If they’re not registered, they’re not for you, as most lenders will not work with unregistered brokers.
- Experience. Mortgages vary depending on what you’re looking for, so you want to know that you’re working with someone who has the relevant experience. If you’re a first time buyer, you don’t want to work with a broker who specialises in buy-to-let mortgages, for example. (But, you know, definitely take their details and come back to them when you’re ready to invest in buy-to-let). In the meantime, look for someone with the experience you need
- Get the widest selection. Make sure you’re working with a broker that is ‘Whole-of-Market’ because this does exactly what it says on the tin – a ‘Whole-of-Market’ broker has access to EVERY mortgage on the market. Which means there is no way you’re going to miss out on a great deal. If they’re not a whole-of-market broker, they could be tied to a specific bank and this would severely limit your options.
- Types of service and availability. We live in the 21st century, so you have the option of a fully online service or in person services. Consider what works best for you. You might prefer to visit a broker in person, or online might be more convenient for you. Don’t forget to think about timings too and check when they’re available. The best bit is, you will definitely be able to find a broker that suits your needs.
- Check reviews. It’s always useful to check a broker’s reviews so you can get an idea for the type of service they’ve provided to others. While there might be the odd rogue 1 star review, if they’re generally rated highly that’s a good sign. But if you see repeats of the same issues across multiple reviews, maybe you need to scratch this broker off your list.
What about the fee?
The fee is usually the sticking point for many people – especially when it comes to remortgaging. Remortgaging in particular can feel simple if you’re happy to stick with your current lender and do a product transfer.
But interest rates are shifting and you’re likely to be looking at a higher rate of interest than you hoped. So whether getting a brand new mortgage or a remortgage, you really want to make sure you’re saving every penny that you can.
So yes, you will have to pay the broker a fee. But for that fee, you will get:
- Advice. You’ll be able to speak to a professional about 2 year vs 5 year fixed rate deals, for example. You’ll have something with knowledge and experience to discuss your next move with.
- Access. You’ll have access to so many more deals than you would have with your current lender. Without YOU having to do all the legwork
- Time saved. They’re doing all the fact-finding and research, they’re finding the right deal. So yes, while they can’t save you from paperwork completely, they can severely reduce the time you spend getting it all sorted
