If you are looking to purchase property, the odds of needing a loan to pay for it range between extremely likely and unavoidable. However, going to an experienced mortgage agent instead of directly into your lender, will bring dividends.
We’ve reviewed the advantages of getting advice on mortgages, regardless of whether you’re a new homeowner, a home-buyer or the remortgager.
1. Access to a wider variety of deals
If you go directly to a building society or bank will mean that you’ll only have only access to mortgage offers it provides. A good mortgage broker can search every market corner to find most suitable deals to your needs.
It’s crucial to know the distinction between a tied broker, which is restricted to a select group of lenders and a ‘whole of market’ brokers who can provide advice on products offered by a vast selection of lenders (although this might exclude certain lenders that only direct applications from clients).
They have access more than 12,000 mortgage offers with 90 different lenders making it the largest selection that is available.
2. Experts in determining the best mortgage for your requirements
The maze of mortgages can be daunting due to the many types of deals available. Also, they can fluctuate frequently, particularly when interest rates fluctuate. You can check out what’s available in the table below.
A broker can help you choose the best mortgage based on the amount of your deposit and your income (or joint income if you’re buying together with an individual) as well as your personal factors.
They will provide information on the various mortgage options like a fix or tracker and will advise you on the term length and the flexibility of the deal based on your specific needs and your life stage.
If you’re the first purchaser, an agent could assist you with schemes like Shared Ownership and an Help to Buy Equity loan scheme and even the possibility of putting your money together and purchasing with acquaintances.
3. Do the necessary legwork for you
A mortgage broker will manage the entire mortgage process , starting with the initial mortgage research, to getting a’mortgage agreement in principle’ in place (which will indicate the amount you might be able borrow based on the information you submit) up until the formal application, offering and closing (when you receive the money).
A broker is knowledgeable of the extensive paperwork required for an application for a mortgage and will describe how important details – like expenses for childcare and an annual reward must be provided.
There are many ways to monitor the progression of your application by using your profile online, which you created at the beginning your application process. This is also where you can upload all pertinent files in digital formats.
4. Improve your odds of having a success-oriented application
As part of the application, the lender will conduct an assessment of your credit score to determine how you’ve handled prior loans. The better your credit score is, the more likely will be approved to get a mortgage.
Even a small issue like the fact that you haven’t paid for the phone contract can negatively impact your credit score and make it more difficult to be approved. But overcoming a credit blip is it takes for brokers. They’ll look at your finances and make the best decisions increase the chances of getting approved.
A broker is also well-versed in how lenders’ affordability tests work, which provides you with the best chance to be accepted.
5. Make use of relationships with lenders
Because it’s what they do all day long Brokers have established relations with lenders. For instance, they will regularly discuss the latest criteria and changes to policies. Mortgage advice Belfast could make you more competitive in obtaining the crucial green approval to get your mortgage.
6. Aid if your income not easy to calculate
If you’re self-employed and/or your income is not consistent or comes coming from various sources, like the experience of a broker can prove extremely valuable.
They’ve had experience handling these kinds of applications, which could be more difficult – and will tailor your application on the basis of their knowledge of the profile and lending requirements of a specific banking institution, or building society.
7. Make a note to remortgage
Even after your mortgage has been approved A broker will notify you that it’s time to remortgage , which is changing to a different deal when your current one expires. This will reduce the risk of you falling into your lender’s possibly costly normal variable rate.
If you’re looking to borrow more money against the mortgage you currently have (such as to create an extension of your house, for instance) an agent will be able to inform you the amount you could take out and the best way to get the money.
8. It’s not necessary to spend one cent
Some brokers charge a fee or a processing fee to set up your mortgage, which can be in the range of £500 but many offer no cost for the client.
Instead, they receive payments from the lender after you’ve completed your mortgage or refinancing. This is done through what is called a “procurement fee or ‘proc or ‘proc fee’ as it is commonly referred to.
However, an adviser will not be paid a percentage of the amount you’re able to borrow or lender choice. Their sole motivation is to find you the best deal.
If you decide to go through a broker but decide to change your mind later there aren’t any obligations to be a part of. You may choose to opt out of the process , or even contact the lender directly.
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