Why Should I Use a Mortgage Broker in York?
Mortgage Advice in York | Mortgage Broker vs Direct
You decide: Mortgage Broker or Direct?
You have the decision to go to a Lender if you decide to go it alone when getting a mortgage – there are available options for going about this such as using a branch or online. But there are many reasons as to why a person should use a Mortgage Broker. Our Mortgage Advisors have taken time out to put together a few pros and cons to help you decide.
Some reasons which would give you the upper hand to going direct to your Bank or Building Society means that you’ll be able to save some finances. In the past, there may have been the common situation of the Bank Manager knowing your finances through and through but that all changed when Credit Scoring came into place.
Other potential advantages are that some Lenders may offer some exclusive products for your mortgage which are only available when establishing your mortgage direct. They do this so that it appeals to both customers and brokers alike, but these exclusive offers can be subject to change and can sometimes be available through Mortgage Brokers when they become unavailable in Branch.
From 2014 onwards, Lenders were banned from selling mortgages on a non-advised basis when there is any customer interaction. Until then, some applicants were under the impression that they were receiving advice when in fact they hadn’t. This meant that they had opted out unintentionally from consumer protection that goes along with proper advised mortgage sales.
Due to these changes, Lenders had to come to terms and find a way to restructure and meant customers were now waiting around a month or more for an appointment. This is never a good thing if you have just had your offer accepted on a house which you’re wanting, and ultimately an increase in the use of mortgage brokers became apparent. Our Mortgage Broker lets you gain a same day mortgage service. When you get in touch, we try and connect you with a qualified Mortgage Advisor either in the same day or at your earliest convenience.
Back in the 90’s, it was a lot more challenging to compare mortgages. Through the advancement of technology, finding a competitive mortgage is now a lot easier with being able to browse online but the difficulty is finding a Lender whose criteria and mortgage products are tailored to your individual circumstances. Wherever you’re searching, it is important to bear in mind that the deals with the lowest tend to carry high arrangement fees.
Another key factor would be Affordability. It doesn’t matter how good a Lender’s deal is if you aren’t able to borrow enough money. With a mortgage being such a vital and important step that most people choose the Broker route for security and stability.
As it can be seen with many lenders nowadays, there are many ways which make a mortgage application so much more complicated. For example, these may be:
· Poor credit history
· Self-Employed Income
· Mixed source of deposit (savings/gift)
· Let to Buy (keeping your current house and buying another)
· Contract workers/zero hours contracts
As the years have passed, Lenders have attempted to differentiate themselves from their competition by ways such as offering better deals than others. The main way they do this is through Lending Criteria. For example, some lend more towards Self-Employed than some others might, or take a more relaxed to blips on your credit report.
We understand that your situation will be unique to you. A Mortgage Broker has most likely been involved in many complex scenario’s in the past so there is hope that they will draw from that experience so that they are able to recommend a more suitable mortgage for you at the lowest rate possible.
However, it’s not just about the mortgage. Even if the application itself is straightforward, our clients rely on us for much more. We strive further than just sorting your mortgage deal. We also discuss how much offers on the property being bought and will recommend other professional services such as Solicitors and the array of different surveys and protection available.
It has already been covered earlier, that Brokers do tend to be far more responsive than Lenders. At a Mortgage Broker such as ours, it is not uncommon for out of hours and weekend appointment. Our Mortgage Advisors also respond to clients’ emails out of hours to offer a more responsive service as opposed to restricted working hours.
One factor which is often overlooked by many as to why a broker is a preferable option to a lot of applicants is that a person may simply want some to handle the full transaction for you to take the stress out of the situation. Professional applicants have seen this to be very beneficial as they have clients of their own that they charge out their services to making it so as they are able to see the advantage of having an expert onboard.
If Lenders in the future aim to gain more customers back from Brokers, it is likely that they will nor staff-up their branch networks. The most option that most will have to do is to make investments in technology to transact with online customers. An online service is great for customers who prefer an online service, but it has its own downfalls as a lot of customers prefer to interact face to face, especially with their mortgage process.