Why do I need a mortgage broker?
When there is so much mortgage information available on the internet, you might be wondering why you need to use a mortgage broker.
Find out more about our mortgage broker services on our website at this link.
During lockdown one of my friends was faced with the prospect of cutting her husband’s hair. “How hard can it be?” she said. She ordered a reasonably priced set of hairdressing scissors from Amazon and watched hours of YouTube videos about “graduating” and “blending” feeling more confident with each viewing.
As it turned out she didn’t do a terrible job, but despite all her research he did resemble one of the characters from Peaky Blinders and insisted on wearing a hat whenever he went out. Needless to say, they were both very relieved when the hairdressers reopened after lockdown.
The internet gives us some great tools to muddle through, but in doing so we’re often encouraged to bypass the experts with the result being more “peaky blinders” and less “barber-shop-grooming”. But while you can cover up a bad haircut with a hat, bad financial decisions tend to be a lot trickier to gloss over.
With so much information available on the internet now, mortgage brokers and financial advisers might be considered an unnecessary luxury by some. In a recent survey of over 2000 UK first time buyers, only 17% used a mortgage broker1. But there are many benefits of hiring experts like us to help you make such a big financial decision.
What is a mortgage broker?
A mortgage broker has specialist knowledge of the mortgage markets and it’s our job to find the right lender to suit your specific needs. You might also hear us referred to as a mortgage adviser or a financial adviser. We’re essentially a middleman between you and the lender, with the job of making your life easier and matching you with the best product for your circumstances.
What are the benefits of using a mortgage broker?
Access to a comprehensive range of lenders.
Mortgage brokers like us have access to a comprehensive range of mortgage products on the market, some of which aren’t available if you were to go direct to a lender. This means that our clients get clear advice on the options to choose from which can save them a significant amount of money in the long run.
Expertise.
As mortgage brokers, we live and breathe mortgages and insurance which means we’re up to date on the latest rates and poised to understand the information we’re sent by lenders. We also have dedicated points of contact with lenders which can help enormously when working through the options or chasing up applications and mortgage offers.
Mortgage brokers are regulated by the Financial Conduct Authority (FCA) (more on this later) which means you can be entirely confident that the advice you get from us is in your best interests and not biased by things like commission from certain lenders. As part of our qualifications (CeMAP, CeRER and CertPRO) we’ve also committed to undertaking continuous professional development (training) to ensure we’re up to date with the latest market information and regulations.
Experience in specialised circumstances.
As advisers we have met and helped hundreds of different people, each with their own unique circumstances. That means we’ve experienced all sorts of lending and insurance scenarios such as unstable income or a history of bad credit.
What might seem like an impossible situation is often something we’ve already navigated multiple times. Having a chat with a mortgage broker can unlock solutions that you might not have considered using a DIY approach.
Saving you time and effort
Working with a mortgage broker can significantly reduce the time it takes to secure a mortgage offer. The systems we use put the information at our fingertips which makes researching the market a much speedier process than trawling through the internet. The ease with which we liaise with lenders and ask pertinent questions on your behalf means we gather information quickly allowing you to make an informed decision sooner.
One of the things our customers are surprised by is that we manage the whole application process for you from start to finish – all you need to do it provide us with the documentation that’s needed. We also chase lenders and manage their queries so you don’t have to muddle through those conversations.
Support throughout the process
A good mortgage broker won’t just advise on the best mortgage rate – they will support you through the whole house buying process, especially if you’re a first-time buyer. We like to make sure that our clients understand all the different stages of buying a house and if needed we can provide recommendations of solicitors and surveyors from our trusted network of suppliers.
We also think it is important to help our clients understand their overall financial situation, ensuring that the right protection is in place (e.g. life insurance or income protection) to reduce their financial risk after taking out a mortgage loan. We also manage all the research and applications for this too.
What can I expect when I work with a mortgage broker?
Every broker will have a slightly different process, but ours is very straightforward and probably representative. Once we’ve had an initial chat and you’ve decided you’d like to work with us, we will spend some time…
1. Finding out about you
We’ll schedule time to meet with you over the phone, on Zoom or in person so that we can understand your house-buying plans and what your current financial situation is. This conversation gives us the basis for our advice because it helps us understand your needs and identify what information we may need and any complexities that we might need to work around.
2. Collecting documentation
We will then ask you to share the information that we need to accurately research the right options for you. The sort of things we’ll ask you for are proof of ID, proof of income, a summary of your monthly outgoings and information about your existing mortgage deal if you have one.
3. Researching the market
We then conduct a thorough search of the mortgage market to identify the options available for your unique circumstances. We’ll consider interest rates and lending criteria and create a list of options to discuss with you.
4. Discussing your options
For us, this is one of the most important parts of the process; making sure you understand all the mortgage options we’ve found for you. It’s vital that you feel comfortable asking as many questions as you need so that you feel confident making a decision based on our recommendations. We encourage our customers to take as much time as they need to review their options and discuss before making any decisions. We’re on hand for you to call us for more clarification at any time.
5. Making the application
Once you have made your decision on the mortgage you want to progress with, we will make the application for you, manage any conversations with the lender and keep you fully up to date on how things are progressing. Once you have your mortgage offer, we will stay involved in the process until the funds are transferred on the day of completion.
We will also ensure that we discuss other services that are important part of the process. This includes putting buildings insurance in place in time for exchange and reviewing your personal insurances so you have the information you need to make a decision about your protection. Your mortgage is a large financial commitment and you need to consider how you would be able to manage your mortgage payments if your income changed, or if you were to die of suffer a serious illness.
And what happens afterwards?
A good mortgage broker will always be on hand to assist after you’ve moved house. If you ever have any questions about your mortgage or any issues with your lender then we are always happy to help. We will also follow up with you for reviews and at timely points in the mortgage lifecycle.
How much does a mortgage broker charge?
Different brokers operate different fee structures, so it’s worth checking with your broker when you have your initial chat. At Downton Mortgages & Financial Services we charge a flat rate fee of £499 which is payable if we submit an application for you. There is no fee for Product Transfers with your existing lender. This means that you will have received valuable information and advice from us before you pay us a penny.
How to choose the right mortgage broker for you
So, if this blog has whetted your appetite about working with a mortgage broker, what is the best way to find one?
Make sure they’re regulated
All mortgage brokers should be FCA regulated and you can check this using their online register and searching by your broker’s name or business name. A legitimate broker will display their registration number on their website and you can check the status of their registration by calling the FCA. If you want to check out our registration then our number is 845100.
Go on recommendation
Referrals from family and friends can be a great place to start or take a look at reviews on Google to get a feel for the type of service you can expect.
Speak to the mortgage broker
Your mortgage broker needs to be someone you trust and click with, so don’t be afraid to ask them some questions about how they work before you make your decision. We would advise confirming their fee structure and how they operate.
Why work with Downton Mortgages & Financial Services
At Downton Mortgages & Financial Services our advisers have been trusted by hundreds of customers to find the right mortgage and protection for their lives. If you’d like to find out more about what we do and how we work, then take a look at our mortgage services pages or our insurance services pages on our website. If you think you might be ready to have an initial chat then please do get in touch.
Sources
1Statistica First Time Buyer Survey, Published Feb 2024
15th March 2024 – The information contained within was correct at the time of publication but is subject to change.