21/08/2024
Mortgage broker vs direct to a bank?
As a representative of the whole of market mortgage broker I hear the argument of going direct to your bank for a mortgage for straightforward/vanilla applications and below I’d like to point out a few key reasons why I think this isn’t right for everyone.
- Service. As a mortgage broker I pride myself on delivering outstanding client satisfaction which is demonstrated from 5 star client reviews, brokers don’t always have access to better deals however educating and guiding clients through the process from start to finish is important, as is working for you as the client to find the most cost effective product that suits your needs, providing availability in evenings and weekends for meetings or for a quick chat can be valuable especially to first time buyers.
- Rate reductions - If you go directly to a bank and secure a rate and this goes to a full mortgage offer, the process will go to the conveyancing side and the bank often won’t do much more, as a mortgage broker we get advance notice of rate changes from 70+ of the top lenders so once your offer is in before exchange we will be proactive and can switch the product on your behalf to save you money and interest should rates reduce.
Example of this with a client of mines, first time buyers and their first mortgage offer came in late June and I have changed their product 3 times to reduce their rate by 0.15% and also found a product that had no arrangement fee versus one with £995 fee on their first offer so over their fixed term this will save them over £2,600. A bank would not let these clients know this if they had went direct and so even if there is a broker fee involved it can often be the best route for clients financially and for a much better service.
- Access to a wide range of products - If you go directly to a bank they can only offer you their own products/interest rates and criteria and you may not fit criteria or affordability you need with them, we have access to 70+ lenders and are experts at finding the solution to your set of circumstances and can often find a more cost effective mortgage product. Whether this is adverse credit, needing to find the lender with the maximum affordability, property criteria, day rate contractor etc in most circumstances a mortgage broker will be able to find the solution to your need.
For example you may need to stretch affordability as a first time buyer and whilst many lenders will lend 4.5x your income there could be options of 5 or 5.5x your income and this could be the difference to securing your dream property or not. This multiple is dependent on multiple factors such as credit commitments and dependents.
I hope you may have found this useful, please email [email protected] or call 0113 208 3308 and ask for myself for any enquiries.
I can help with first time buyers/home movers, remortgages, Buy to Let mortgage needs - personal and Limited Company, life insurance, Income Protection, Critical Illness and Home insurance.
I am part of One Financial Group who are a Directly Authorised mortgage and protection broker company. FCA no 954693
* Your home may be repossessed if you do not keep up repayments on your mortgage. *
