Mortgages are a hot topic at the moment as interest rates continue to rise. Many homeowners coming out of fixed rate deals made in the halcyon days of low interest rates are urgently seeking new fixed rate deals. Other homeowners with rising costs are wondering what to do next.
Are you wondering if it’s worthwhile working with a mortgage advisor or broker rather than searching for a mortgage deal yourself? In short, are mortgage advisors good value for money?
We’ve compiled information in response to some frequently asked questions about the advantages of working with a mortgage broker that we hope will help you decide the best route best for you.
Do mortgage brokers have access to a larger portfolio of products than my bank or available on the internet?
According to our mortgage advisor partner, HHH Mortgages Ltd, brokers place 80% of the mortgage business in the UK.
Some lenders will only work with brokers directly, which means mortgage advisors have a larger portfolio of lenders and products to explore for their clients than can be found independently. Lenders also offer exclusive rates to brokers which are not available to customers contacting them direct.
Going to your High Street bank might feel like the right thing to do as you know them, and they know you, but by doing so you’re restricting your options to the products they alone provide. Consequently, using a mortgage broker can save you money overall.
Many mortgage brokers charge a fee so what do they do to justify that fee?
Using a mortgage broker means you’re working with someone whose reputation depends on doing a good job for each and every client.
It’s their job to search the market to find exactly the right product for you, depending on your circumstances and your aspirations.
They’ll scan the mortgage market, explain your options and make a mortgage recommendation that will suit you particularly. They’ll work hard to explain what the best option for you is and help you through every step of the mortgage application process. It’s their job to make the daunting process of obtaining a mortgage as painless and straightforward as possible. After all, when you tell your friends and family what a good job they did could result if more work for them, so they are invested.
If you are time poor, using a mortgage advisor could save you time as they will work to explain the process of applying, complete all the application forms for you and can liaise with solicitors, underwriters and estate agents to take as much time consuming work and stress away from you as possible. They are usually more flexible than a lender or high street bank, able to make appointments with you at a time to suit you so you don’t have to take time out of work.
Do mortgage advisors get information about products I can’t find myself?
Mortgage brokers have notification on when rates are going to be changed before the lenders change them. Policies and lending criteria are changing all the time, but a broker should know what the changes will be, in advance. This advance notice will mean that your broker is able to give you the best possible advice and any given time.
There are also brokers that specialise in particular types of mortgages, such as buy to let or holiday home mortgages. It’s worth finding a specialist mortgage advisor like HHH Mortgages, if you’re thinking of buying a holiday home or extending your property portfolio.
Their privileged position gives you the best possible chance of finding the right product for you with options and choice.
Can mortgage brokers help clients with poor credit ratings?
Sometimes things don’t go entirely to plan and we can wind up with a poor credit rating. Working with a mortgage broker can be your best chance of getting past the situation and finding the mortgage you need.
Sally Hilliker, HHH Mortgage advisor had a client who for no fault of her own, had ended up with a poor credit rating.
One client came to me with 2 satisfied CCJ’s for parking fines her ex had left her when they split up. I was able to find a lender who would consider this for her. She was elated that she could buy a new home for herself and move on from a horrid situation.
Another of Sally’s client’s had issues because of his daughter’s excessive phone use!
One client who was a high earner decided to not pay his daughters mobile phone bill as it was quite big, however he did not realise this then impacted his credit file. Luckily for him we found a lender who did not use the normal credit file searches and were willing to manually underwrite the case.
In such cases mortgage brokers have the expertise to help clients with a poor credit rating file as they can identify those lenders who are more willing to deal with cases on their merits. There are more lenders willing to be flexible and help clients as the cost of living crisis continues, and brokers will know who they are.
A Broker can advise how to correct the issues and help you develop a plan to get the right mortgage, providing advice and hope many high street lenders cannot.
Could I inadvertently harm my credit rating by searching and applying for mortgages myself?
Mortgage brokers have affordability calculators that allow them to work through various options and identify the best mortgage product for you without harming your credit rating. This is because their calculators only produce ‘soft searches’ that don’t register on your credit score.
If you apply for a few mortgages yourself, you could create ‘hard searches’ that do register on your credit score and when you don’t take out those mortgages it can reduce your credit score.
If you’re looking for a mortgage or want to explore your mortgage options, get in touch with our trusted mortgage broker partner today!
