If you are looking to purchase a new house and find a great deal, you might have considered using a mortgage broker. Often we can be put off using a mortgage broker because of the fee they charge, or the commission they earn, however, there are some fantastic benefits to using a mortgage broker. I have teamed up with Furness Building Society to explain why you should Trust Your Broker.
What is a mortgage broker?
A mortgage broker is someone who acts as the middle-man between you and a mortgage lender, to ensure that you get a great deal that is suitable for your needs.
What are the benefits of using a mortgage broker?
It can often be off-putting when you see that some mortgage brokers charge a fee, or are commission based, however it is important to not let this put you off. There are so many fantastic benefits to using a mortgage broker.
One of the biggest benefits of using a mortgage broker is that you are protected. A mortgage lender has a duty of care to ensure that they offer you a suitable and affordable mortgage – if they don't then you could make a complaint and be compensated. Mortgage brokers are also qualified to give you mortgage advice beyond just finding you the cheapest mortgage available.
A mortgage broker also knows the industry – mortgages have changed a lot recently, especially in regards to the criteria. You certainly can't walk into a bank and walk out with a mortgage like I did at 18!
This insider knowledge that mortgage brokers have can help out in all sorts of ways – whether it is knowing which mortgage lender will process your application the fastest, to being able to chase up your application with more urgency than you would be afforded.
It is important to remember that a mortgage broker won't just advise you about your new mortgage, but they can also look at other things such as life insurance, buildings and contents insurance as well as payment protection. A mortgage broker is on your side and they will look for the best mortgage for you and your circumstances.
A mortgage broker is also able to find lenders that are suitable for people with unusual circumstances or irregular income.
Meeting your mortgage broker
Getting to meet with a mortgage broker is an exciting step in the property purchasing process. How do you know when the right time to meet with your mortgage broker is? In order to meet with a broker, you will need to be employed, have your deposit ready, have a property in mind and also have your documents ready. Typically the documents you will need are:
- 3 months of payslips
- Your P60 (your P60 is provided by your employer after every tax year, by the 31st May. It shows how much tax you've paid on your salary and helps to provide proof of your income for a mortgage)
- Utility bills
- Bank statements
You can either meet your mortgage broker face to face, or you can have a telephone call. You can expect to spend an hour with your mortgage broker.
Where to find a mortgage broker
With so many mortgage brokers to choose from, knowing where to turn can be half of the battle. You can find your mortgage broker from a variety of methods:
- Recommendations from friends and family members
- Internet searches
- The Money Advice Service
- Personal finance blogs
- Social media
- Estate agents
If you are looking to secure a mortgage then it might be beneficial for you to speak to a mortgage broker soon.